Estimated 2001 Results

Compagnie de Saint-Gobain
24 January 2002


ESTIMATED RESULTS FOR 2001:

. ANOTHER YEAR OF CONTINUED GROWTH:

- Sales up 1.6% on a comparable basis
- Operating income up 3.8% on a comparable basis
- Net income excluding capital gains up 3%, to EUR 1,057 million                                 
- Free cash flow, excluding taxes on capital gains, up 33%, to EUR 1,328 million

• OPERATING MARGIN (EXCLUDING BUILDING MATERIALS DISTRIBUTION) 
  HOLDS FIRM AT 10.6%                       

• OBJECTIVE FOR 2002: GROWTH OF 0 TO 4% IN NET INCOME EXCLUDING CAPITAL GAINS

• SIMPLIFIED TENDER OFFER FOR THE MINORITY INTERESTS IN LAPEYRE AT A PRICE 
  OF EUR 62 PER SHARE

Excluding capital gains, net income of the Saint-Gobain Group for 2001 is 
estimated at EUR 1,057 million, up 3% compared with 2000.

Earnings per share (EPS) rose 3% to EUR 12.40 from EUR 12.04 in 2000, based on 
the 85,258,628 shares outstanding at December 31, 2001.

This growth is on a par with what was achieved in the first half and in line 
with the objective set by the Group on October 30, 2001 (growth of 1 to 5% in 
net income excluding capital gains). It reflects the ability of the Group as a 
whole to continue to develop despite a more difficult environment, especially in 
the last four months of the year following the events of September 11th..

Consolidated net income is estimated at EUR 1,137 million. This is 25% below the 
figure for 2000, due to lower capital gains in 2001.

Earnings per share (EPS) amounted to EUR 13.34, down 25.1% from EUR 17.80 in 
2000, based on the 85,258,628 shares outstanding at December 31, 2001.

The Group's consolidated financial statements for 2000 included the results of 
Essilor, which was fully consolidated up to June 30, 2000, then accounted for by 
the equity method up to November 15, 2000, when the Group sold its entire 
interest in this company. 

For purposes of comparability, the Group's consolidated financial statements for 
2000 are also presented with Essilor accounted for by the equity method, and the 
comments that follow are based on this presentation.

Based on the estimates presented at the Board of Directors Meeting of January 
24, 2002, the Group's key consolidated data for 2001 are as follows:

                                     2000     2000 pro     2001     % change
                                    in EUR     forma,     estimated          
                                   millions Essilor by  EUR millions
                                                E.M.               
                                            EUR millions
                                                 (1)         (2)      (2)/(1)

Net sales                           28,815     27,837     30,391          9.2%
Operating income                     2,693      2,563      2,677          4.4%
Dividend income                         24         24         33         37.5%
Interest and other financial
 charges, net                         (612)      (594)      (603)         1.5%
Non-operating costs                   (158)      (157)      (123)       -21.7%
Income before profit on sales of non-                         
current assets and taxes             1,947      1,836      1,984          8.1%
Profit on sales of non-current
 assets, net                           584        584         89        -84.8%
Provision for income tax              (791)      (758)      (720)          -5%
Amortization of goodwill              (182)      (171)      (183)           7%
Share in net results of
 equity investees                       84        103          7        -93.2%
Net income before minority
 interests                           1,642      1,594      1,177        -26.2%
Minority interests                    (125)       (77)       (40)       -48.1%
Net income                           1,517      1,517*     1,137          -25%
Earnings per share (in EUR)          17.80      17.80      13.34        -25.1%
Net income excluding capital gains   1,026      1,026*     1,057            3%
Earnings per share excluding capital                         
 gains (in EUR)                      12.04      12.04      12.40            3%
Cash flow from operations            2,643      2,530**    2,725          7.7%
Cash flow excluding capital gains    2,747      2,634**    2,758          4.7%
Capital expenditure                  1,722      1,638      1,430        -12.7%
Investments in securities            3,347      3,275        848        -74.1%
Net indebtedness                     8,217      8,217      7,797         -5.1%

*  of which Essilor: EUR 39 million 
** of which Essilor: EUR 11 million
 
The Group's performance in 2001, compared to a year of strong growth in 2000, 
reflects the Saint-Gobain Group's resilience in a markedly more difficult 
economic environment, particularly in the United States. It is attributable to 
the Group's more balanced operations mix, added to the ongoing profitability-
boosting efforts pursued in each of the business sectors (see Appendix).

The Glass Sector posted the strongest performance within the Group in 2001. Its 
sales and earnings were again bolstered by higher prices across all business 
lines and sustained demand in Flat Glass and Containers.

The High-Performance Materials Sector, which had already seen a dip in sales and 
profitability in the first half due to the downturn in the global electronics 
market, was further affected in the second half due to the gradual slowdown in 
industrial activity and investment in both the United States and Europe, 
particularly after the events of September 11, without any recovery in 
electronics.

The Housing Products Sector posted higher operating income in all three 
divisions. Building Materials Distribution continued to develop through both 
organic growth and bolt-on acquisitions, and it began to benefit from synergies. 
Its operating income rose strongly, bringing operating margin to 4.9% against 
4.5% in 2000 (pro forma accounts including Raab Karcher and Meyer for the full 
year). The Pipe Division achieved profitability gains thanks to the cost-
reduction drive undertaken in the final months of 2000. Following a dip in sales 
in the first half, the performance of the Building Materials Division was 
boosted in the second half by the industrial rationalization efforts it had 
carried out and by a healthy U.S. construction market.
                                      
Group sales were up 9.2%. Based on a comparable Group structure, sales rose 1.1% 
in euros and 1.6% in local currencies. This slight rise was mainly attributable 
to higher sales prices (up 3.1% overall) in all Group divisions. Sales volumes 
however, which had already declined in the first half, contracted further in the 
second, essentially due to the general economic slowdown in both North America 
and Europe following the events of September 11th.

Sales in France accounted for 28.9% of the total, with other European countries 
contributing 41.1% North America 22.8% and other countries 7.2%.

Operating income rose by 4.4%, and 3.8% on a comparable structure and exchange 
rate basis. Operating margin was 8.8%, compared to 9.2% in 2000. The change was 
wholly due to the increased weight of the Distribution Division. Excluding 
Building Materials Distribution, operating margin was unchanged at 10.6%.

In line with first-half trends and despite a much more challenging economic 
environment in the second half, margins grew in France and other European 
countries, but contracted in North America due to the slowdown in markets tied 
to capital expenditure and industrial equipment. Margins held firm in Latin 
America and Asia, despite the devaluation of the Brazilian real (-19.7% on 
average compared to 2000).

Income before profit on sale of non-current assets and taxes rose 8.1%, driven 
by higher operating income and a reduction in non-operating expenses that fell 
to EUR 123 million from EUR 157 million in 2000.

Net interest and other financial charges remained almost unchanged from 2000, as
gains from disposals and lower interest rates offset, over the full year, the 
impact of the acquisitions carried out in 2000.

Profit on sales of non-current assets amounted to EUR 89 million. This mainly 
concerned capital gains on the disposal of the Group's entire stake in BNP 
Paribas, less capital losses of EUR 87 million recorded by the Lapeyre Group in 
2001, mainly as a result of its refocusing on sales to private individuals and 
craftsmen. Capital gains were considerably lower than in 2000, when the Group 
had sold 4 million Vivendi shares and its entire stake in Essilor.

The Group's share in net results of equity investees amounted to EUR 7 million, 
against EUR 103 million in 2000. This sharp decrease was mainly due to the sale 
in November 2000 of the Group's interest in Essilor and, on the other hand, to 
the full consolidation of certain subsidiaries.

Minority interests decreased significantly compared to 2000, to EUR 40 million 
from EUR 77 million, as a result of the purchase by Compagnie de Saint-Gobain of 
the minority interests in Saint-Gobain Cristaleria and certain Brazilian 
subsidiaries, at the end of first-half 2001.

Net income amounted to EUR 1,137 million, down 25% in relation to 2000. Earnings 
per share (EPS) amounted to EUR 13.34, down 25.1% from EUR 17.80 in 2000, based 
on the 85,258,628 shares outstanding at December 31, 2001. In line with the 
commitments made by the Group, new shares issued in the course of the year (in 
particular those issued under the Group Savings Plan) were offset at the end of 
the year by the cancellation of an equivalent number of shares. Total capital 
stock at December 31, 2001 was therefore practically unchanged in relation to 
December 31, 2000 (85,213,263 shares).

Excluding profit on sales of non-current assets, net income came to EUR 1,057 
million, 3% higher than the EUR 1,026 million recorded in 2000. Earnings per 
share (EPS) rose 3% to EUR 12.40 from EUR 12.04 in 2000, based on the 85,258,628 
shares outstanding at December 31, 2001.

Cash flow from operations expanded by 7.7% to EUR 2,725 million. Excluding the 
EUR 33 million in tax on profit on sales of non-current assets, cash flow from 
operations stood at EUR 2,758 million, an increase of 4.7% over the EUR 2,634 
million for 2000.

Capital expenditure on plant and equipment came to EUR 1,430 million, down 12.7% 
from the EUR 1,638 million invested in 2000, and representing 4.7% of sales 
versus 5.9% of sales in 2000.

Free cash flow (cash flow minus capital expenditure on plant and equipment) 
amounted to EUR 1,295 million, up from EUR 892 million in 2000. Excluding the 
EUR 33 million in tax on profit on sales of non-current assets, cash flow from 
operations stood at EUR 1,328 million, up 33.3% on the EUR 996 million recorded 
in 2000.

Expenditure on securities amounted to EUR 848 million, including EUR 343 million 
for the buyback of minority interests in Saint-Gobain Cristaleria and in the 
Group's Brazilian subsidiaries.

Net debt at December 31, 2001 stood at EUR 7.8 billion, down 5.1% compared with 
the amount at December 31, 2000 and representing approximately 61% of 
shareholders' equity, down from 67% at June 30, 2001.

Outlook: The economic outlook for 2002 is particularly uncertain at this time 
and economists' forecasts vary widely. Based on a scenario of recovery, 
including in particular a turnaround of the U.S. economy beginning at the end of
the first half of 2002, the Saint-Gobain Group has set as its objective growth 
of 0 to 4% in net income excluding capital gains.

                              *          *          *
                
PLANNED SIMPLIFIED TENDER OFFER FOR THE MINORITY INTERESTS IN LAPEYRE

At its meeting of January 24, 2002, the Board of Directors of Compagnie de Saint
-Gobain approved the filing by the Company of a simplified public tender offer 
(Offre Publique d'Achat simplifiee) for the shares in Lapeyre that it does not 
currently hold. The offer concerns the 5,563,533 shares making up the free float,
representing 25.3% of Lapeyre capital stock. The price offered will be EUR 62 
per share, for a maximum total outlay of EUR 345 million. This price represents 
a 28.8% premium over the average weighted share price of the past three months 
and a 21.3% premium over the closing price on January 23, 2002. It is also 
slightly above the highest trading price reached by the Lapeyre share over the 
past twelve months (EUR 61.45 on January 24, 2001).

This transaction will allow the Saint-Gobain Group to strengthen its control 
over Lapeyre's capital, leveraging the large free cash flow that the Group has 
generated in 2001.

This transaction will have an accretive impact on Saint-Gobain's earnings per 
share as from 2002.


Next results announcements:

-  Final 2001 results:  Thursday, March 28, after the Paris Stock Exchange has 
                        closed

-  First quarter 2002 sales:  Thursday, April 25, after the Paris Stock 
                               Exchange has closed

Appendix:

Results by Business Sector, Division and Geographic Area
(in millions of euros)

1.SALES                                  2000     2001     change on an     change on a      change on a
                                                         actual structure    comparable       comparable
                                                              basis       structure basis   structure and
                                                                              in euros      currency basis
by sector and division:                         
Glass(1)                               11,317   11,813         +4.4%             +2.7%          +3.2%
Flat Glass                              4,167    4,478         +7.5%             +4.0%          +6.0%
Insulation and Reinforcements           3,254    3,274         +0.6%             -2.9%          -3.0%
Containers                              3,906    4,070         +4.2%             +5.6%          +5.3%
High on-Performance Materials
 & Plastics (1)                         5,073    4,018        -20.8%             -5.6%          -5.5%
Ceramics and Plastics & Abrasives       4,095    4,018         -1.9%             -5.6%          -5.5%
Essilor                                   978                -100.0%          
Housing Products (1)                   12,596   14,824        +17.7%             +2.1%          +2.7%
Building Materials                      3,067    3,184         +3.8%             +2.7%          +2.7%
Building Materials Distribution         7,929   10,061        +26.9%             +3.2%          +3.7%
Pipe                                    1,778    1,782         +0.2%             -2.3%          -0.9%

internal sales                           (360)    (477)               
GROUP                                  28,815   30,391         +5.5%             +1.1%          +1.6%

by geographical area:                         
France                                  8,541    9,095         +6.7%             +5.2%          +5.2%
Other European Countries               11,203   12,947        +15.3%             +0.3%          +0.9%
North America                           7,002    7,180         +2.5%             -0.1%          -3.2%
Rest of the world                       2,148    2,292         +6.7%             -5.2%          +8.1%
Essilor                                   978                -100.0%          
internal sales                         (1,058)  (1,122)               
GROUP                                  28,815   30,391         +5.5%             +1.1%          +1.6%

(1) Including inter-divisions eliminations


II. OPERATING INCOME                     2000     2001        change
by sector and division: 
Glass (1)                               1,228    1,356        +10.4%
Flat Glass                                430      551        +28.1%
Insulation and Reinforcements             423      401         -5.2%
Containers                                374      404         +8.0%
High Performance Materials &
 Plastics (1)                             668      389        +41.8%
Ceramics and Plastics & Abrasives         538      389        -27.7%
Essilor                                   130                -100.0%
Housing Products (1)                      780      915        +17.3%
Building Materials                        252      294        +16.7%
Building Materials Distribution           422      490        +16.1%
Pipe                                      106      131        +23.6%
misc.                                      17       17
GROUP                                   2,693    2,677         -0.6%

by geographic area:
France                                    797      871         +9.3%
Other European Countries                  791      977        +23.5%
North America                             739      580        +21.5%
Rest of the world                         236      250         +5.9%
Essilor                                   130                -100.0%
GROUP                                   2,693    2,677         -0.6%


III. CASH FLOW                           2000     2001        change
by sector and division:               
Glass (1)                               1,421    1,560        +11.6%
Flat Glass                                489      613        +19.8%
Insulation and Reinforcements             452      444         -1.8%
Containers                                480      501         +4.4%
High Performance Materials &
 Plastics (1)                             582      327        -43.8%
Ceramics and Plastics & Abrasives         458      327        -28.6%
Essilor                                   124                -100.0%
Housing Products (1)                      702      762         +8.5%
Building Materials                        273      291         +6.6%
Building Materials Distribution           309      340        +10.0%
Pipe                                      120      132        +10.0%
misc.                                     (63)      75     
GROUP                                   2,643    2,725         +3.1%

by geographic area:               
France                                    598      797        +33.3%
Other European Countries                  925    1,024        +10.7%
North America                             673      586        -12.9%
Rest of the World                         323      318         -1.5%
Essilor                                   124                -100.0%
GROUP                                   2,643    2,725         +3.1%


IV. CAPITAL EXPENDITURE ON PLANT 
      AND EQUIPMENT                      2000     2001        change

by sector and division:               
Glass (1)                                 961      826         -14.0%
Flat Glass                                425      358         -15.8%
Insulation and Reinforcements             258      228         -11.6%
Containers                                278      240          +6.6%
High Performance Materials &
 Plastics (1)                             290      172          +8.6%
Ceramics and Plastics & Abrasives         205      172         -16.1%
Essilor                                    84                  -35.1%
Housing Products (1)                      469      430         +19.5%
Building Materials                        172      134          +8.6%
Building Materials Distribution           229      246         +58.5%
Pipe                                       68       49         -24.5%
misc.                                       2        1     
GROUP                                   1,722    1,430         -17.0%

by geographic area:
France                                    433      365         -15.7%
Other European Countries                  572      537          -6.1%
North America                             362      316         -12.7%
Rest of the World                         272      211         -22.4%
Essilor                                    84                 -100.0%
GROUP                                   1,722    1,430         -17.0%

 

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