Asahi Glass Shares Rise on Outlook for Higher Profit reported that shares of Asahi Glass Co., the world's third-largest glassmaker, rose by the most in six weeks after the company said writing off U.S. assets and exiting an unprofitable unit in China will boost earnings from next year.

The stock climbed 64 yen, or 4.7 percent, to 1,422 yen on the Tokyo Stock Exchange, the highest closing price since Oct. 26. It had the ninth-sharpest increase of the 1,706 companies in Japan's Topix index.

Morgan Stanley, the world's second-largest securities firm, said the U.S. write-off and disposal in China will increase next year's earnings at Asahi Glass and bring the company closer to a mid-term profit target. The measures will cost 75 billion yen this year and come as prices rise for raw-materials and demand shrinks for cathode-ray tubes, known as CRTs, used in televisions.

``Measures are being taken to bring about much-needed structural reform of CRT glass and North American flat glass,'' Lalita Gupta, an analyst at Morgan Stanley with an ``equal- weight'' rating on Asahi Glass, said in a research note.

The 75 billion yen in losses led Asahi Glass to cut its forecast for profit this year by almost half, to 41 billion yen from a previous target of 76 billion yen, the company said yesterday after the Tokyo stock exchange closed.

It's writing off 40 billion yen from its Tennessee-based AFG Industries Inc. unit at once instead of spreading the charge over the next seven years, Asahi Glass said. AFG, North America's largest supplier of glass for buildings, was acquired by the Japanese company in several steps beginning in 1988.

Read the entire news on the source link below.

600450 Asahi Glass Shares Rise on Outlook for Higher Profit
Date: 26 December 2006

See more news about:

See more from these topics:

Others also read

Nippon Sheet Glass Co., Ltd. will install a new high-performance press bending line at the Maizuru plant (Kyoto, Japan) for automotive windshields, applying its proprietary technologies.
Stronger Dragontrail™ Pro glass facilitates evolution of advanced smartphone and tablet designs
NSG Vietnam Glass Industries, a NSG Group company based in southern Vietnam, was awarded with 2016 Outstanding Quality Award by First Solar for VGI’s continuous quality improvement efforts and enduring commitment to First Solar’s Supplier Quality Continuous Improvement (SQCI) process.
Nippon Sheet Glass Co., Ltd. (NSG) is developing a new range of UV-cut automotive glass products called UV Protect 400™.  UV Protect 400™ blocks 99% (*1) of UV rays (300nm-400nm), which includes the longer wavelength UVA (315nm-400nm) that can cause damage to deeper layers of the skin.
AGC Japan launches its Sudare powered-by-Solaria product with first commercial installation complete and a pipeline of projects in development.
Nekotech Industy will provide the licensed production for explosive resistance glasses Hercules V. This glass has one of the highest quality of explosive resistance glasses in Japan. Laminated anti bomb blast glass such like Hercules V is difficult to produce.

Add new comment