Nippon Sheet Glass Releases Second Quarter Financial Results
October 31, 2012
by Casey Neeley, firstname.lastname@example.org
Auto glass sales and profits fell during the second quarter of this year when compared to last for Tokyo-based Nippon Sheet Glass (NSG). The international company released today its second quarter financial results for its fiscal year 2013 (FY13). Sales of automotive glass declined from $1.6 billion USD during the same quarter last year to $1.5 billion USD this year. Operating profit declined 28 percent from $46.7 million to $33.5 million. Europe accounted for 42 percent of the groups automotive sales; Japan 20 percent and North America 23 percent.
NSG officials attribute the decline to lower consumer demand.
"Automotive markets were challenging, with low levels of consumer demand in most major markets leading to reductions in vehicle production when compared to the previous year," reads the report. "Calendar year-to-date vehicle sales for Western Europe are approximately seven percent below the previous year. Exports of premium vehicles continued to provide some support to production levels. Automotive Glass Replacement (AGR) demand also fell from the previous year, as consumers postponed replacing damaged windshields where possible. In technical glass markets, volumes of glass cord for engine timing belts were below the previous year, consistent with conditions experienced in the automotive business."
Japanese sales provided more positive AGR results than North America.
"AGR markets were also positive compared to the previous year, although softened during the second quarter," say officials in the report. "[North American] AGR markets experienced weak demand."
"In the rest of the world, [NSG]'s architectural and automotive markets in South America were challenging, with declining demand, although in Brazil, sales of new vehicles improved during the second quarter," continue officials in the report. "Market conditions in South East Asia were also difficult, with a weak pricing environment reflecting continued imports of glass from China."
"Results in the [European] AGR business also fell, with reduced demand being partly offset by an increasing proportion of sales of higher value-added products," say officials in the report. "In North America, representing 23 percent of [NSG]'s Automotive sales, OE revenues improved from the previous year, due to increased volumes. AGR revenues fell however, with reduced market demand."
Despite falling numbers, NSG officials say that second quarter results met their expectations.
"The market conditions faced by NSG during the second quarter, whilst challenging, were similar to the group's expectations.
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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