Soaring crude prices shatter returns for sheet glass makers

Date: 16 June 2008
Source: Livemint

Date: 16 June 2008

With the price of furnace oil, used by sheet glass makers to fire kilns, rising in line with that of crude oil, most firms have reported falling profits or losses in the quarter up to March 2008.

The price of fuel is telling heavily on the returns of India’s sheet glass makers, among the worst hit in the manufacturing sector since energy comprises 30% of their manufacturing costs.With crude oil prices at record highs, the news is only likely to get worse.



The country’s sheet glass industry—which, analysts say, earns about Rs2,200 crore a year—uses mostly furnace oil to fire kilns that melt raw materials such as silica and borax to produce glass.



Five listed glass making companies, whose data is available with Bloomberg, have all reported either falling profits or losses in the quarter up to March compared with the same period last year.



For instance, Asahi India Glass Ltd, the largest listed glass making company, posted a loss of Rs12.28 crore on sales of Rs264.20 crore for the quarter that ended on 31 March. Its profit for the fiscal year fell 80% to Rs84.40 crore.



Asahi’s rival Saint-Gobain Sekurit India Ltd posted losses for eight straight quarters, before registering a profit of Rs46 lakh in the quarter up to December, the last time the company filed its results.

Cliick on the link bellow to read the entire article.

 



600450 Soaring crude prices shatter returns for sheet glass makers glassonweb.com

See more news about:

Others also read

Enhanced solar control glass with exceptional performance
Saint-Gobain solidifies its presence in the Australian market with the signing of a definitive agreement to acquire CSR Limited.
This acquisition would be fully aligned with Saint-Gobain’s strategy as a worldwide leader in light and sustainable construction and an opportunity to enter the Australian market.
Saint-Gobain Glass receives the latest Cradle to Cradle Certified® certification version 4.0 for its glass products
The game-changer shatterproof mirror
Yesterday, Glass for Europe’s Chairwoman Joana Arreguy from Saint-Gobain participated in the EU Clean Transition Dialogue on industry with EC President and Executive Vice-President.

Add new comment

From industry