NSG, parent company to Pilkington, reported that revenues for the fiscal first quarter for automotive glass were below the prior year due the strength of the Japanese Yen. However, at a constant exchange rate, revenues were ahead thanks to increased volumes in Europe and North America, according to the company.
The automotive business reported sales of $773.5 million USD (78,481 million Yen) and an operating profit of $36.6 million USD (3,714 million Yen.) This compares to sales of $819.8 million USD (83,145 million Yen) and operating profit of $25.6 million USD (2,593 million Yen) in the prior year.
In Europe, the NSG’s OE volumes improved as light-vehicle sales grew, particularly in the Southern European markets. Automotive glass replacement (AGR) volumes were also robust in the region, according to the company.
In North America, Pilkington reported local currency revenues and profits higher than the previous year. Light-vehicle sales were similar over the prior year; however, the company’s volumes grew. The AGR results were similar to the same quarter of last year.
“Improved operational efficiency also contributed to the profit improvement,” said Kenichi Morooka, chief financial officer of the NSG Group in a conference call.
In Japan, revenues and profits dropped due to a decline in light vehicle sales. AGR profits were steady from the prior year.
“Our automotive businesses in South America continue to suffer from the weak market conditions, with a further decline in light-vehicle sales from the previous year,” Morooka added.
The company’s full-year forecast remains unchanged, according to Morooka. He said the improving trend of underlying operating profitability will continue and the impact of strengthening Yen should not outweigh this.
Overall sales for the company as a whole were $1.5 billion (150,531 million Yen) and operating profit was $70.2 million (7,117 million Yen.) This is compares to sales of $1.6 billion (162,139 million Yen) and an operating profit of $30.7 million USD (3,113 million Yen) in the previous year.