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Asahi to see first group net loss

At the end of January Japanese Asahi Glass Co. announced restructuring plans that include the closing of its CRT (cathode-ray tube) glass plant in Chiba Prefecture, and expects its first group net los…

At the end of January Japanese Asahi Glass Co. announced restructuring plans that include the closing of its CRT (cathode-ray tube) glass plant in Chiba Prefecture, and expects its first group net loss ever in fiscal 2001. The restructuring plans also include a reduction of chemical operations at the head office, and reflect the slump in information technology sales and greater losses by the company“s chemicals business. Due to greater restructuring expenses, Asahi Glass projects a consolidated net loss of JPY 9 billion (US$ 67.39 million) in fiscal 2001, a sharp turnaround from the JPY 24.7 billion profit made the prior year. This is the first consolidated net loss suffered since the firm started to compile these records in the term ended December 1968. The company is booking JPY 17 billion in extraordinary losses, including greater retirement allowances, and expects to reduce its staff by 200. The firm forecasts its consolidated operating profit to plunge by 49% to JPY 57 billion, JPY 5 billion lower than the estimate released with its results for the April-September 2001 period. This reflects, among other things, higher materials prices in the chemicals division and lackluster demand for phosphate products.

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