The CEO of Saint-Gobain does not expect conditions in the US building sector to improve before 2009. "The environment in the US construction sector is not going to improve in 2008. We do not expect a pick-up before 2009", Piere-Andre de Chalendar told French daily Les Echos. He also said in the interview that because Saint-Gobain produced & sold most of its products in the same country, a weak dollar had a limited impact on the group, which makes some 15% of its sales in the USA. He said a weaker dollar, a slowdown in the US residential market & the subprime crisis were reducing the valuation of companies. "There can thus be acquisition opportunities to seize", he said. Commenting on the impact of the US subprime crisis on the French market, Mr. de Chalendar said he had "no particular worry on France". This was mostly because the financing terms of the construction sectors differed. "In France loans are traditionally based on the borrower's revenues, rather than on the value of the assets he is borrowing for. The danger of a financing bubble is much more limited". Mr. de Chalendar also said higher energy prices could be an opportunity for Saint-Gobain in the medium term as the group is pushing energy-efficient home products.
