Glass giant reports better figures, despite European automotive decline

St Helens-based Pilkington was acquired by Nippon Sheet Glass in 2006

Nippon Sheet Glass (NSG), parent group of former St Helens glass giant Pilkington, unveiled better third quarter financial results today.

The group said revenues in the period to December 31, rose 3% to £3.21bn, while pre-tax profits of £120m were a 22% improvement on the same period last year.

The group said it benefiyted from stable conditions in most of its markets, excluding the European automotive markets where the conditions slowed down rapidly during the third quarter.

Profit before taxation showed a significant year-on-year improvement resulting from reduced net finance costs and a solid operating performance of Cebrace, the group’s joint venture in Brazil.

In addition, a gain recognised in Cebrace related to sales tax overpaid in previous years contributed to the improvement.

Taxation decreased significantly, as the tax adjustment regarding the US tax rate change arising in the previous year did not recur.

As result, the profit attributable to owners of the parent improved by £8.5m to £7.3m.

Today’s statement said prices have generally remained stable across most of NSG’s businesses.

It revealed 40% of the group’s sales are in Europe, 33% in Asia, including, Japan and 27% in the Americas.

Looking ahead, the group expects the markets to be stable for the rest of the year, but the trading profit forecast has been revised to reflect factors such as the sudden slow-down of European automotive glass markets during the third quarter, continuingly depreciated South American currencies – although this is becoming more stable – and increases in input costs.

Technical Glass, which makes products such as mobile phone screens, is expected to maintain its solid performance, but the
results of architectural and automotive are expected to fall below the original forecast.

Except for some markets, architectural markets are expected to be stable generally, but will be affected by the increases in input costs and the impact of hyperinflationary accounting in South America.

Click here to sign up to receive our new South West business news...
Close