NSG Announces Plans to Improve Profitability in 2012
February 2, 2012
by Penny Stacey, email@example.com
The NSG Group, which owns the former Pilkington North America and announced several executive appointments yesterday and a reorganization of its business units, today announced plans to improve its overall profitability in fiscal-year (FY) 2012. The plans include the “mothballing of one of the group’s float lines in the United Kingdom,” along with a global reduction of 3,500 employees.
Despite this revision, the company reports that the auto glass replacement market in both North America and Europe has remained comparable in profit to previous years, according to the company’s most recent financial report.
In North America, which makes up 20 percent of NSG’s automotive sales, the company reports falling original-equipment (OE) revenues and profits. The company attributes some of this drop to the prominence of Japanese manufacturers in the North American market, which suffered from component shortages due to the earthquake and to flooding in Thailand. However, the North American auto glass replacement market maintained profitability, “although demand showed signs of weakening during the third quarter,” the company reports.
In the European OE market, NSG reports that revenues were slightly below the previous year, “as improving demand generated from vehicle exports was offset by weak domestic demand.” On the auto glass replacement side, the company says business was “relatively robust despite lower demand.”
Overall, NSG’s automotive business recorded sales of 2.5 billion (USD) (187,249 million Japanese Yen) and an operating profit of 41.7 million (USD) (3,179 million Japanese Yen).
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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