Pilkington reassures despite tough climate

Most European building products markets remain challenging, it said though North American economic indicators are improving and South America demand for float glass remains robust.

As anticipated, the softening economy in Australasia is affecting demand.

Energy costs are rising but the energy surcharge introduced in Europe last year has provided some relief said the group.

"Significant improvements in manufacturing performance have reduced costs further and as a result our performance is in line with last year," said chairman Nigel Rudd at the group's AGM.