Saint-Gobain Group (Paris La Defense; www.saint-gobain.com) saw operating profit in its high performance materials division fall by 2.2% in 2006 to around EUR 500m. Sales in the division increased 1.2% to EUR 4.94 bn year-on-year. On a like-for-like basis, sales increased 3.3% thanks to healthy industrial markets, particularly in the energy, environment and housing segments. Overall, the group increased operating profit by 30% to EUR 3.71 bn on sales up 18% at EUR 35.1 bn.

For 2007, Saint-Gobain said it expects economic growth to remain favourable in most markets, except new residential construction in the US. It is targeting double-digit growth in net income over the year. As part of a strategic review of its reinforcements and composites division in 2006, the group agreed to create a joint venture with Owens Corning (Toledo, Ohio / USA; www.owenscorning.com) – see Plasteurope.com Web of 03.08.2006 and 20.10.2006.

The new company, to get started this year, to be called Owens Corning-Vetrotex Reinforcements,will have pro forma annual sales of around EUR 1.5 bn.