Shares of French company Saint Gobain (EPA:SGOB) jumped more than 6% Friday after the company posted its first-quarter results, which saw a sequential improvement in volumes.
The company, which designs, manufactures and distributes materials and services for the construction and industrial markets, reported that sales came in at €11.4 billion, with a negative currency effect of 0.5%.
Like-for-like sales were down 5.8%, impacted by the decline in new construction in Europe. However, they were supported by growth in the Americas and Asia-Pacific markets.
Meanwhile, group prices declined by 1.1%, although the price-cost spread was positive due to well-managed pricing and the decrease in certain raw materials and energy costs.
Volumes were down by 4.7% in the first quarter, with a negative working day effect of 1.5% at the group level . This represents an improvement at comparable working days on the fourth quarter 2023 performance (down 4.5%)
Looking ahead, the company said the market, both geopolitically and macroeconomically, remains challenging and it "expects some of its markets to remain difficult" during the year.
However, it remains confident and sees a double-digit operating margin for the fourth consecutive year.
Reacting to the report, analysts at Jefferies said revenues of €11.356 billion were in line with their estimate, although like-for-like sales were a touch weaker. However, while the outlook is unchanged, "the tone of the call was reassuring for both volumes and margins," said the firm.
"The market will likely focus on mgmt's [management's] view they are past the worst of its markets," said Jefferies, which maintained a Buy rating on the stock.