27 May 1999: Japan“s Asahi Glass reported a 75% fall in group net profits to 5.1 billion yen (US$ 41 million) in the year to March 1999, citing restructuring costs and the weak Japanese economy. Asah…
27 May 1999: Japan“s Asahi Glass reported a 75% fall in group net profits to 5.1 billion yen (US$ 41 million) in the year to March 1999, citing restructuring costs and the weak Japanese economy. Asahi said net profits would rise to 8 billion yen and pre-tax profits to 29 billion yen on sales of 1,300 billion yen this year. This was a conservative forecast, said Seiichi Yamada of Dresdner Kleinwort Benson, because the company was keen to avoid downgrading its estimate having done so twice last year. Group net sales, which fell from 1,346 billion yen to 1,280 billion yen, were hampered by stagnant demand for flat glass and construction materials. However, sales at the electronics business increased 12% to 140 billion yen. Selling, general and administrative costs rose from 216 billion yen to 230 billion yen, cutting operating profits from 66.1 billion yen to 43.7 billion yen. Pre-tax profits excluding exceptionals dropped 50% from 56.8 billion yen to 28.2 billion yen. The company reported extraordinary losses of 26.7 billion yen.