3 June 1999: Belgian glassmaker Glaverbel reiterated that it sees higher profits in 1999 on sales of more than BFr 60 billion (US$ 1.56 billion), but warned that some market conditions remain difficul…
3 June 1999: Belgian glassmaker Glaverbel reiterated that it sees higher profits in 1999 on sales of more than BFr 60 billion (US$ 1.56 billion), but warned that some market conditions remain difficult. “The restructuring now being carried out in several activities, and the synergies with the former PPG plants, should improve our performance in line with expectations, especially in the second half of the year, and our sales should exceed BFr 60 billion, with a large improvement in profits,” chief executive Luc Willame said in remarks delivered at the annual general meeting. But Willame noted that some markets remained weak. “For the current year, the present market instabiilty that has now lasted since last October requires us to be very cautious,” he said. He cited the failure of the German construction market to show signs of a seasonal upturn and an overcapacity of glass on the market. “From a shortage of glass up until September, we have very rapidly swung to an overcapacity situation, with prices falling on certain markets by up to 20%,” he said. The outlook for the automotive sector, however, was stronger. “Even if profitability is still lower than the norm for this sector, it should contribute to an improvement of our overall margins,” he said. In 1998, Glaverbel“s group net profit rose 28% to BFr 1.67 billion on sales of BFr 50.80 billion. Glaverbel is controlled by Asahi Glass of Japan, and acquired PPG Europe in 1998. Meanwhile, Willame also said that the company expects to invest US$ 20 million in an automotive glass plant in Nizhny Novgorod, belonging to the Russian company Bor glassworks, in which Glaverbel already has a 25% stake. “We have to invest in the plant because European auto manufacturers are planning to invest in new car plants in the region,” he said. However, Glaverbel“s investment is limited because the company wants to make sure that Bor adopts western management practices.