Asahi Glass Co. estimates that its group operating profit for the year ended 31 December 2004 will have reached a record JPY 140 billion, higher than its forecast JPY 135 billion.
Sales are believed …
Asahi Glass Co. estimates that its group operating profit for the year ended 31 December 2004 will have reached a record JPY 140 billion, higher than its forecast JPY 135 billion. Sales are believed to have totaled around JPY 1.47 trillion, JPY 3 billion more than projected. Sales of LCD glass substrates were particularly strong within the company“s electronics and display operations. The division“s operating profit likely went up to around JPY 74 billion, JPY 3 billion higher than originally projected. Asahi Glass“ Keihin plant in Yokohama and its Kansai plant in Amagasaki, Hyogo Prefecture, have supplied sixth-generation glass substrates to Sharp Corporation. Because of tighter supply, Asahi Glass has managed to avoid price declines in LCD glass substrates. This helped offset the fall in substrates for plasma screens, an area in which competition has intensified. Asahi Glass“ inability to transfer rising natural gas prices to glass prices in the US affected its profitability, although it was able to compensate somewhat with improved productivity, mainly in Japan and Asia, through cost reduction efforts. Gains in construction and automobile glass are also believed to have contributed to the company“s earnings. Net profit is estimated to have totaled around JPY 80 billion, the highest figure since the financial year ended 31 December 1989. Asahi Glass“ extraordinary charges are believed to have risen to around JPY 40 billion on losses from write-downs of production facilities and idle land as well as the integration of its ceramics operations with Tostem Corp. However, it expects to offset this with JPY 24.3 billion in profit by no longer handling pension benefits paid to retired employees on behalf of the government and with capital gains from the shares of affiliates.