What COVID Did to NSG

NSG Group reported a decline in revenue in fiscal year 2020, largely due to the COVID-19 pandemic. According to the NSG Group Integrated Report 2020, the company’s 2020 revenue was nearly $5.4 billion USD*, down from approximately $5.9 billion in 2019.

The company’s trading profit was $222 million in 2020, compared to nearly $374.5 million in 2019. The profit before taxation was a $130.7 million loss in 2020. The last time the company saw a loss in this category was in 2016. Last year’s profit before taxation amount was approximately $219.2 million.

The automotive business segment recorded sales of $2,708 million and had an operating profit before exceptional items of $58.8 million. According to the financial report, the automotive business’ revenues and profits were below the previous year. The company attributes this to the impact of foreign exchange movements, together with a decline in new car production in Europe. The Americas represent 33% of the company’s automotive sales, its revenue also fell due to the translational impact of foreign exchange movements and weakening market conditions particularly towards the end of the year with a significant impact from the COVID-19 pandemic, as noted in the financial report. In North America, despite OE volumes being slightly below the previous year, profits strengthened, benefitting from further manufacturing efficiency improvements. Profitability in South America was similar to the previous year.

According to the company, Europe represents 43% of NSG Group’s automotive sales.

Volumes were significantly affected by COVID-19 related stoppages at customer’s plants towards the end of the year, according to the financial report. Asia represents 24% of the company’s automotive sales and revenues were below the previous year, profits also declined. In Japan, revenues were below the previous year, as an improvement in sales volumes during the first two quarters was more than offset by a reduction from the third quarter after the imposition of increased sales taxes from 1 October 2019, according to the financial report. Profits also fell from the previous year, being impacted by raw glass cost increases and the reduction of volumes from the third quarter.

The chart below represents the automotive segment’s fiscal years end (March 31, 2019 to March 31, 2020) in millions.

NSG Group Financial Automotive Segment (in millions of U.S. dollars)
  Revenue Operating (Loss) and Profit
FY2020 FY2019 FY2020 FY2019
Auto Glass $2,708 $3,033 $58.8 $145.731m
Source: NSG Group’s FY2020 Results

Editor’s Note: The financials were converted from Japanese yen to U.S. dollars on December 15, 2020.

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