Japanese Asahi Glass Co.“s pre-tax profits rose 5% to JPY 28.9 billion (US$ 273 million) for the year ending March 1996. Sales of glass and related products, which account for 49% of the total, were …
Japanese Asahi Glass Co.“s pre-tax profits rose 5% to JPY 28.9 billion (US$ 273 million) for the year ending March 1996. Sales of glass and related products, which account for 49% of the total, were slow as sales of flat glass and construction materials were slack due to falling demand from the construction industry, officials from the Japanese company announced. Fabricated glass sales were stagnant, while glass bulb sales stayed firm. Consolidated net profit increased 43% on the previous period to JPY 24.8 billion thanks to a strong performance at overseas subsidiaries. Consolidated sales grew 3% to JPY 1.28 trillion. Display-glass sales expanded 30% in other Asian markets, while sheet glass for buildings sold well in the US and Europe. Consolidated operating profit came to JPY 51.8 billion, up 46%. For the year through March 1997, Asahi expects to see a 14% increase in the parent company“s pre-tax profit to JPY 33 billion which should increase the earnings per share to JPY 17.02 (JPY 15.59), while the Japanese company estimates JPY 30 billion in consolidated net profit, up 21% and a 5% increase in consolidated sales to JPY 1.35 trillion. Asahi Glass will pay an annual dividend of JPY 9.5 per share. Asahi Glass has also announced that it is to expand its capacity of soda ash to 1 million tonnes per year by around 2000. This is to be achieved by substantially raising the capacity of its American joint venture with Solvay – Solvay Soda Ash JV (SSAJV) – in which the Japanese manufacturer has a 20% stake, as well as by streamlining production systems in Japan. Asahi Glass confirmed that it will cease production of soda ash at Chiba, Japan, in favour of increased exports from the US. The company will close its 200,000 million tonne-per-year unit by midsummer 1997. According to the announcement, the top Japanese glass manufacturer plans to boost soda ash capacity of SSAJV from the current 2.3 million tonnes per year to 3-3.5 million tonnes per year by the end of this century. Negotiations are now under way between the two parties concerned regarding the expansion plan, an Asahi Glass official said. These steps are intended to secure material for glass, supply the material to customers at home and abroad on a stable basis, as well as increase competitiveness in world markets, in the medium and long terms. Asahi Glass sees the amount of soda ash it will require at the end of this century increasing by 20% to 1 million tonnes per year. As Tosoh Corp. of Japan has decided to give up soda ash production this summer, there will be only three manufacturers and three plants in Japan after 1997. At that time the import-to-domestic-production ratio will increase to 45:55. It is also rumoured that Korea“s OCI Industries is considering shutting down its Asian capacity now that its purchase of Rhone-Poulenc“s soda ash operation in Green River, Wyoming, US, is complete.