Pilkington Rise Masks Tough Conditions

Glassmaker Pilkington offered investors little hope of an immediate upturn in its markets today – despite delivering a jump in first half profits.

The group, which makes glass used by builders and car manufacturers worldwide, said it expected “testing” conditions to persist for the remainder of its current financial year.The prediction came as results for the six months to September 30 showed an 11% hike in underlying profits to £84 million, even though turnover was flat at £1.4 billion.But after taking one-off hits from pulling out of car glass replacement operations in New Zealand and laminating activities in Brazil, bottom line profits were down slightly on the same period last year – from £72 million to £71 million.Merseyside-based Pilkington said the rise in underlying profits, which was in line with expectations, was underpinned by efficiency gains achieved following a long-term restructuring drive which has seen it exit a string of underperforming businesses.But it added that the figures also reflected a favourable comparison with the same period last year when a series of plant closures for routine repairs dented its performance.Chairman Sir Nigel Rudd said: “The benefits of Pilkington’s extensive restructuring of the last six years are evident in our improved operational efficiency and robustness.“With Pilkington currently in the second stage of its strategy, and demonstrating our capability to generate cash, we are in a good position to withstand the testing trading conditions which we expect to continue over the rest of the financial year.”Pilkington’s building products arm maintained operating profits at £67 million in the first half thanks largely to efficiency gains.It said demand for building products continued to be weak, with the exception of the UK and Australian markets.In the UK, the division’s performance held up well, boosted by strong sales of its environmentally friendly K Glass which has benefited from legislation requiring builders to install energy-saving windows.Sales in its automotive operation, excluding those from joint ventures and associates, were up 3% at £614 million despite weak markets being boosted by the popularity of new models which use Pilkington’s glass.In Europe, where Pilkington does just over half of its automotive business, the company saw lower volumes for light vehicles but higher shipments of specialised products such as for coaches and trucks.Glassmaker Pilkington offered investors little hope of an immediate upturn in its markets today – despite delivering a jump in first half profits.

The group, which makes glass used by builders and car manufacturers worldwide, said it expected “testing” conditions to persist for the remainder of its current financial year.

The prediction came as results for the six months to September 30 showed an 11% hike in underlying profits to £84 million, even though turnover was flat at £1.4 billion.

But after taking one-off hits from pulling out of car glass replacement operations in New Zealand and laminating activities in Brazil, bottom line profits were down slightly on the same period last year – from £72 million to £71 million.

Merseyside-based Pilkington said the rise in underlying profits, which was in line with expectations, was underpinned by efficiency gains achieved following a long-term restructuring drive which has seen it exit a string of underperforming businesses.

But it added that the figures also reflected a favourable comparison with the same period last year when a series of plant closures for routine repairs dented its performance.

Chairman Sir Nigel Rudd said: “The benefits of Pilkington’s extensive restructuring of the last six years are evident in our improved operational efficiency and robustness.

“With Pilkington currently in the second stage of its strategy, and demonstrating our capability to generate cash, we are in a good position to withstand the testing trading conditions which we expect to continue over the rest of the financial year.”

Pilkington’s building products arm maintained operating profits at £67 million in the first half thanks largely to efficiency gains.

It said demand for building products continued to be weak, with the exception of the UK and Australian markets.

In the UK, the division’s performance held up well, boosted by strong sales of its environmentally friendly K Glass which has benefited from legislation requiring builders to install energy-saving windows.

Sales in its automotive operation, excluding those from joint ventures and associates, were up 3% at £614 million despite weak markets being boosted by the popularity of new models which use Pilkington’s glass.

In Europe, where Pilkington does just over half of its automotive business, the company saw lower volumes for light vehicles but higher shipments of specialised products such as for coaches and trucks.

600450 Pilkington Rise Masks Tough Conditions glassonweb.com

See more news about:

Others also read

Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.
China's largest automobile glass maker Fuyao Glass Industry Group Co, Ltd, won its case against the dumping ruling of the US Department of Commerce (DOC).
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.
Praxair, Inc. (NYSE: PX) today announced that its subsidiary Praxair Canada Inc.'s specialty gases plant in Paris, Ontario, Canada, is one of Praxair's first specialty gases plants in North America to complete the upgrade to ISO 9001:2000, the latest ISO 9000 standard for quality.

Add new comment