NSG flat glass group reports profit drop of 67%

Operating profit decreased in all divisions of Nippon Sheet Glass (NSG Group) it reported in its latest financial statement.

In its quarterly report the Japanese-headquartered company said operating profit decreased in all businesses, especially in its Architectural division which had been affected by the European economic slowdown.

While overall group Q1 revenue was up by 4.1% compared to the year before at JPY 216.4 billion ($1.5 billion), operating profit was down by 67.3% to JPY 4.8 billion ($33.1 million).

It said the current demand and supply situation in the Central European architectural glass market had caused the early closure of a float line in its Weiherhammer site, Germany.

It warned it would ‘take any appropriate actions to improve profits including cost reductions throughout the group’.

The company, which runs the Pilkington glass brand, also reported demand for solar glass was robust and a new facility which started production in Malaysia in December last year was contributing to profit.

The conversion of a float line to a solar line at its Rossford, Ohio, USA facility was also making good progress.

Thanks to the conclusion of price agreements with customers, its automotive division had contributed a 12.7% increase in revenue.

Its Technical Glass division also saw a revenue increase of 2.4% thanks to an increase in demand, but profit was down due to an increase in other costs.