FT: Glaverbel expects contraction of net result in 2002; to cut capacity

The company said there is falling demand in glass and pressure on raw glass prices and that because of the production overcapacity in Europe it will cut its capacity by the equivalent of one float plant by reducing the pull of its furnaces and bringing plant repairs forward and extending the repairs.However, Glaverbel said the impact of the economic downturn will be limited because of operational improvements in the automotive sector, further development of high added-value products in the glass processing sector and the start-up on new plant, including one in the Czech Republic.The company said it will make 220 mln eur of capital investment in 2002 to cover repair of float plants at Cuneo, Moustier and Bor Glassworks.Also it will finance the installation of a new magenetron sputtering unit for producing solar control coated glass and the installation of a tempering furnace at the Splintex plant in Roccasecca.

Glaverbel posted a full year group net profit of 131.1 mln eur, an increase of 31 pct from 99.8 mln a year earlier.

It said its performance was due to its strategy of geographical diversification and increased specialisation in products with high added value.

The building division was firmer due to new production capacity in the Czech Republic, expanding sales of high added value products and a favourable price for raw glass.

Results for the automotive division were higher because of a greater proportion of products with high added value and productivity gains following the operational recovery plan in 2000.

The industries division improved chiefly because of mirrors activity and the beginning of a recovery in the domestic appliance sector.