Glass manufacturer reports half-year profit though sales still down

Metro Performance Glass is back in the black despite a continued drop in sales.

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The glass manufacturer's first half net profit of $7.6 million for the six months ended in September was down 2 percent on the year earlier, swinging from a large loss at the full year.

Revenue dropped about 14 percent to $117m, with a small gain in Australian sales offset by a 19 percent drop in the New Zealand business.

"The improved Australian financial result and New Zealand government wage subsidy ($6.5m) helped the group performance but were not sufficient to offset the significant financial impacts that resulted from the five-week shutdown in New Zealand," the company said in its financial report.

Cost cutting helped the company reduce its net debt by $19.2m year on year, although capital costs were expected to increase in the second half.

"Future market conditions remain uncertain and given the impacts of Covid‐19 and heightened market competition are likely to be with us for some time, it is critical that the group remains vigilant and adaptable," chief executive Simon Mander said, noting there had been an increase in building consents.

"Reflecting the significant level of uncertainty the group is facing, we now anticipate providing guidance on expected results for the 2021 financial year alongside a trading update in February 2021."