4 March 1999: Belgian flat glassmaker Glaverbel reported a 28% rise in 1998 net profit, but said growth had slowed down towards the end of the year as demand in the construction sector waned.
Chief e…
4 March 1999: Belgian flat glassmaker Glaverbel reported a 28% rise in 1998 net profit, but said growth had slowed down towards the end of the year as demand in the construction sector waned. Chief executive officer Luc Willame said he expected profits to continue rising in 1999, but said the rate of profit growth was likely to slow. He said he saw turnover rising to more than 60 billion francs in 1999. “Our budget is certainly based on double digit growth,” he said. “But we remain a cyclical business, which means that in a good year we make a lot of money and in a bad year we don“t do well.” Glaverbel“s 1998 profit rose to BFr 1.670 billion (41.4 million euros) from BFr 1.305 billion a year-ago. Turnover rose 19% to BFr 50.798 billion. Willame said he expected the 1998 dividend would be set at about BFr 130 Belgian, compared to BFr 124 in 1997. The dividend is expected to be announced 14 April. Growth in 1998 mainly reflected results of PPG Industries“ European glass activities, acquired in 1998 and consolidated into the last four months of 1998 results. Without PPG, Glaverbel“s group turnover rose about 5-6%, Willame said. He said he expected a slight slowdown in the market for automotive glass after surging demand in recent years. Demand from the construction industry, especially in Germany, which dampened results in the fourth quarter of 1998, was showing signs of a pick-up, Willame added. Glaverbel“s thin glass activities also showed signs of a slow down, particularly due to a softening of the market in China, Willame said. “But those problems (in China) have been solved,” Willame said, “Today, yields are back to what they should be and the outlook is good.” Willame said one of the main priorities for Glaverbel in 1999 was to ensure that the integration of PPG Industries went smoothly. “PPG gave us the size we need to have,” he said. The purchase means Glaverbel is neck on neck with Pilkington as the second largest glass producer in Europe, with 23% of the market share. Willame said Glaverbel planned to strengthen that share by building a glass-making plant in Spain and by focusing on creating products using advanced glass technology.