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SAINT-GOBAIN IN 1992: NET INCOME OF 2.37 BILLION FRENCH FRANCS

 PARIS, Jan. 21 /PRNewswire/ -- Consolidated net income for the Saint-Gobain Group amounts to 2,370 million French Francs in 1992. Affected by a difficult economic environment in the second half year of 1992, it is down by 5.5 percent only, when compared to 1991; announced the group.
 The group demonstrates its ability to resist adverse economic conditions. Based on current estimates presented to the board of directors today (Thursday) the key consolidated figures are as follows:
 SAINT-GOBAIN GROUP RESULTS
 (In millions of French Francs)
 1992 estimates 1991
 Sales 73,900 75,065
 Operating income (1) 6,400 7,099
 Financial charges, Net (2,180) (2,226)
 Reorganisation and other costs (1) (840) (673)
 Income before tax and before
 Results on sales of non-current assets 3,820 4,726
 Results of sales of non-current assets 300 (34)
 Income taxes (1,170) (1,532)
 Net income before minority interests 2,600 2,882
 Net income 2,370 2,509
 Net income, excluding profits/losses
 from the sale of non-current assets 2,130 2,549
 Resources from operations (cash flow) 7,840 8,199
 Capital expenditure on plant
 and equipment 5,050 5,700
 Acquisition of investments 1,530 2,230
 NOTE: (1) After restatement for 1991 to be consistent with new accounting classifications adopted in 1992.
 Group sales are down by 1.6 percent despite the consolidation of OBERLAND for the whole year (against 4 months in 1991).
 On a comparable structure basis in French Francs, the decrease in sales is 4 percent. During the second half year, the impact of the economic downturn has affected most of the group's markets and countries in which it operates, with further pressures on prices. Only the United States has shown a perceptible strengthening of activity in recent months.
 Sales are split: France, domestic market 27 percent, exports from France 11 percent, other European countries 40 percent, countries outside Europe 22 percent.
 Operating income has decreased by 10 percent. It is stated after the depreciation charge which rose slightly (3.5 percent), and overheads which are at a lower level. It represents 8.7 percent of sales, against 9.5 percent in 1991.
 Income before tax and before results of sales of non-current assets is down 19 percent with dividends from non-consolidated subsidiaries down 17 percent. Net interest expense has declined slightly and reorganization and other charges have increased by 25 percent, mainly due to the restructuring measures which have been taken.
 Results of sales of non-current assets show a significant profit, against a loss of 34 million French Francs in 1991. They include capital gains on the sale of fixed assets and the sale of financial investments, including treasury stock.
 The decrease in income taxes reflects the drop in pre-tax income. Amortization of goodwill is similar to that of 1991 (300 million French Francs).
 Net income amounts to 2,370 million French Francs and excluding results on sales of non-current assets, to 2,130 million French Francs.
 Earnings per share based on the number of shares issued at Dec. 31, 1992 (69,993,279 shares) are 33.9 French Francs against 36.9 French Francs, Dec. 31, 1991 (67,898,425 shares). Excluding results on sales of non-current assets, they are 30.4 French Francs per share, against 37.5 French Francs in 1991.
 Cash flow of 7,840 million French Francs is down by 4.4 percent. It remains at 11 percent of sales and exceeds by 2.8 billion French Francs the capital expenditure which was 650 million French Francs lower. It largely covers capital expenditure and investment acquisitions.
 The group's net indebtedness declines by 2.1 billion French Francs. It amounts to 18.4 billion French Francs, at Dec. 31 1992, against 20.5 billion French Francs at the end of 1991. It represents 48 percent of shareholders' equity, against 56 percent at the end of 1991.
 A review by business area shows improvements in the Pipe Division as well as in the Insulation and Building Materials Divisions, which both have significant operations in North and South America. The other Industrial Divisions were affected by the poor economic conditions in Europe to varying degrees. The most cyclical Divisions, Paper-Wood and Fibre Reinforcements, recorded heavy losses.
 From a geographical standpoint, there was a noticeable improvement in countries outside Europe, mainly due to the recovery in the United States during the second half. France was able to maintain a good level of net income due to exceptional profits, while the other European countries, with the exception of Germany, have suffered from the decline in their operations.
 -0- 1/21/93
 /CONTACT: Anne Guimard of Saint-Gobain, tel Paris: 331-47-62-33-08, or Investor Relations Department, tel: 331-47-62-43-14/


CO: Saint-Gobain Group ST: IN: SU: ERN

WB -- NY060 -- 7470 01/21/93 13:50 EST
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Date:Jan 21, 1993
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