French construction materials group Compagnie de Saint Gobain SA reported 15 April 2008 that 1Q 2008 sales were down 1.4% to EUR 10.3BN, affected in part by the continuing US housing crisis. Nevertheless, the Paris-based firm confirmed its previous guidance for the full year. "The Group is confident in its ability to adapt & withstand more challenging economic conditions, & therefore confirms its objectives for 2008", it said. Those objectives foresee modest growth in operating income at constant exchange rates & in recurring net profit in 2008. The group sees "a solid financial structure & continuing high levels of free cash flow". The company also disclosed that weak real estate markets have led it to plan for additional cost savings in 2008 in the US, Spain the UK. "These measures will preserve our margins", CE Pierre-Andre de Chalendar said in conference call. He did not place a monetary value on the measures, but they are in addition to EUR 300 million of planned cost savings announced in September 2007. The measures announced 15 April 2008 include 800 new layoffs in the US, following 1,700 job cuts in 2006-2007, when it closed 16 plants and production lines. In the UK, the company has already cut 400 jobs in the 1Q 2008, Mr. de Chalendar said. He did not outline plans for Spain.
