The ratings reflect France-based Compagnie de Saint-Gobain S.A.'s very strong business profile, stemming from solid competitive positions, and its extensive diversity in terms of product, geography, and markets. This is tempered, however, by the group's moderate financial profile, acquisitive strategy, and exposure to asbestos-related litigation in the U.S. Net unadjusted financial debt was €6.8 billion at end-June 2004. With sales of €15.7 billion in first-half 2004, Saint-Gobain holds worldwide or European leadership positions in diversified industries (glass, industrial ceramics, plastics and abrasives, insulation and fiber reinforcements, building materials, and building-materials distribution). Saint-Gobain benefited from a pick-up of industrial end markets in the first half of 2004, which favorably affected its high-performance-materials division, good activity levels in its construction end markets
