Nippon Sheet Glass Sees 18-Percent Drop in Sales for Automotive Sector
May 20, 2009

Nippon Sheet Glass has announced its fiscal year 2009 results. In the company's automotive glass business, it recorded sales of approximately $3.1 million and an operating income of $13.6 million.

In the European Original Equipment (OE) and replacement glass sectors, which comprise 51 percent of the Group's automotive sales, the company reports that cumulative revenues were below last year, due to significantly lower demand from OE customers during the third and fourth quarters.

The company reports that replacement glass sector was "less severely impacted" (than OE). NSG also reports that profits were down from the previous year in the automotive sector, "especially within OE during the third and fourth quarters where it was not possible to reduce capacity and costs quickly enough to match the lower sales."

In North America, which represents 21 percent of NSG's automotive sales, replacement glass sales and profits were similar to last year, the company reports, and sales in OE remained down, "driven by accelerated lower market demand in the third and fourth quarters."

"This, coupled with higher energy costs during the year and costs associated with a float re-build, has significantly affected business performance," writes the company.

Japan represents 16 percent of the NSG's automotive sales. During the first three quarters of the year, improvements in manufacturing and operational performance led to increased profitability, according to the statement issued by the company. However, this market also saw a rapid decline in the fourth quarter as vehicle manufacturers cut production due to a decreased demand.

NSG Automotive Glass Results Summary

Sales Operating Income
FY2008 FY2009 FY2008 FY2009
$3.8 million $3.1 million $251 million $13.6 million
Percent Change -18.4 percent -94.6 percent

CLICK HERE for full text of statement.

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