A Second Quarter Rebound’s Not Enough to Make Up for Glass Maker’s First Quarter Pandemic Hit

While the COVID-19 pandemic continues to affect the NSG Group’s year-over-year revenue and operating profit comparisons, demand recovered significantly from the first to second quarter of 2021 due to global easing of lockdowns, according to the group’s FY2021 2nd Quarter Consolidated Financial Results for the period of July 1-September 30, 2020.

The company’s Q2 2021 revenue was $1.25 billion*, compared to $1.36 billion during the same period last year. NSG Group’s operating profit was $36.6 million in the second quarter of FY2021, down from $58.9 million in the same quarter of FY2020. However, that is an improvement from the first quarter, when pandemic-related causes led to an operating loss of $5.6 million.

Second quarter year-over-year comparisons don’t show the entire picture of how hard the glass manufacturer was hit by pandemic measures. In the first half of FY2021, NSG Group’s total revenue was $2.14 billion. That’s down from $2.78 billion in the first half of FY2020. The company’s first half 2021 operating profit was less than a quarter of what it was in the same period last year. The company’s first half 2021 operating profit was $30.9 million, a sharp decline from $143.7 million in the same period of FY2020.

In the company’s automotive business, revenues and profits were below the previous year, which NSG Group said was “due to the collapse of demand arising from the COVID-19 pandemic during the first quarter of the year.” The financial report noted that the OE business demand has steadily recovered since April and May but in most regions is still somewhat below normal levels. In the AGR business, demand improved during the second quarter with an easing of lockdown restrictions.

Europe represents 41% of the NSG Group’s automotive sales, the cumulative revenues and profits fell from the previous year, according to the report. NSG Group’s automotive facilities have operated in line with its customers’ facilities, with production restarting towards the end of the first quarter and steadily increasing during the second quarter, according to the financial report.

In Asia, which represents 25% of NSG Group’s automotive sales, cumulative revenues and profits were also below the previous year. The automotive facilities have generally remained operational throughout the year, and have benefitted from the second quarter’s increased volumes.

The Americas, which represent 34% of NSG Group’s automotive sales, cumulative revenues and profits also declined, although the three-month results during the second quarter were similar to the previous year’s results. Vehicle production rebounded in North America during the second quarter.

*Editor’s Note: The financial results were converted from Japanese Yen to U.S. dollars on November 9, 2020. Emmariah Holcomb contributed to this report.

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