SGO Cie de SaintGobain

   By Nathan Allen 
 

France's Compagnie de Saint-Gobain SA (SGO.FR) said Monday that it will accelerate an asset-sale program and overhaul its unit structure in an effort to boost margins and find savings.

Under the new structure, Saint-Gobain will be organized into five reporting units, compared with the current three divisions and 14 delegations.

The new structure should deliver around 250 million euros ($283.3 million) in savings and shore up the operating margin by more than 100 basis points, the company said.

Accelerating the asset-sale program should strengthen margins by around 40 basis points, it said.

Meanwhile, Saint-Gobain said Benoit Bazin will become the new chief operating officer, effective Jan. 1.

Sreedhar N will be appointed chief financial officer, the company said.

Write to Nathan Allen at nathan.allen@dowjones.com

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Positive impact of the transformation program on operating margin of more than 100 basis

points: new organizational structure expected to deliver €250 million savings in addition to the

current cost savings program in place; acceleration of portfolio rotation expected to improve

operating margin by c.40 basis points

(END) Dow Jones Newswires

November 26, 2018 02:32 ET (07:32 GMT)

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