Asahi Glass Co. Ltd., Japan“s largest glass maker, will likely post a 30% rise in its group operating profit in 2007, due to fewer defects in glass for liquid crystal displays (LCD) and a higher prof…
Asahi Glass Co. Ltd., Japan“s largest glass maker, will likely post a 30% rise in its group operating profit in 2007, due to fewer defects in glass for liquid crystal displays (LCD) and a higher profit margin from its move to larger substrates, the Nikkei newspaper reported on 11 January 2007. Asahi Glass spokesman Keisuke Miira declined to confirm the report, saying the company does not plan to release any figures until 5 February 2007 when it reports its earnings results for the year ended 31 December 2006. The business daily said Asahi“s display operations are likely to grow as flat-panel televisions become more common, while demand for glass used in buildings will remain strong in Europe. For the year ending in December 2006, Asahi Glass is likely to register JPY 175 billion (USD 1.46 billion) in group operating profit, it said. The paper said the glass maker will likely report a 9% rise in sales to about JPY 1.75 trillion. The firm“s free cash flow of about JPY 25 billion will be in the black for the first time in two years, up from a negative figure of about JPY 30 billion last business year, it said. In 2006, production problems at a liquid crystal display glass furnace in Taiwan prompted Asahi Glass to cut its full year profit, and the firm also suffered from falling prices of cathode ray tube glass.