Sven Edelfelt's questions to COMPAGNIE DE SAINT GOBAIN (CODYY) leadership • Q3 2021
Question
Sven Edelfelt of ODDO BHF sought to clarify the negative price-cost spread in H2, estimating a potential €100 million negative impact. He also asked why pricing in the High Performance Solutions (HPS) division was lower than other segments and about the impact of rising energy costs on its raw materials.
Answer
CFO Sreedhar N. reiterated confidence in a positive price-cost spread for the full year, supported by the €125 million positive spread from H1. COO, CEO & Director Benoit Bazin explained that HPS pricing is weighed down by the Mobility (automotive) business, where prices contract over a model's life. He noted the automotive market deterioration in Europe will impact HPS margins in H2, despite the company outperforming the market by 10 points due to its EV exposure.