Luoyang Glass Co. Ltd. said on 3 May 2005 that its consolidated interim results for the period ending 30 June 2005 will be “materially and adversely” affected by falling sheet glass prices.
The Chine…
Luoyang Glass Co. Ltd. said on 3 May 2005 that its consolidated interim results for the period ending 30 June 2005 will be “materially and adversely” affected by falling sheet glass prices. The Chinese glass maker said it could not make a definite estimate of the impact on its finances for the time being. It is expected to announce the interim results at the end of August 2005. Luoyang Glass said demand for glass had started to fall in the 4Q of 2004 due to Chinese government measures to cool rapid economic growth. Demand was expected to slow further in 2005. The company said fierce price competition among sheet glass makers and its establishment of a number of production lines would also adversely affect the 1H 2005 result. As a result, Luoyang Glass said its sales volume and gross profit in the 1H 2005 would be lower than in the 1H 2004. The company“s gross profit margin was 17.92% in the 1Q 2005, down from 23.31% in the previous year 1Q. In the final week of April 2005, the sheet glass maker said unaudited net profit fell to CNY 2.32 million (USD 280,000) in the 1Q 2005 from CNY 29.37 million a year earlier due to lower margins. Shares of the company have fallen 8.5% over the past three months.Luoyang Glass Co. Ltd. said on 3 May 2005 that its consolidated interim results for the period ending 30 June 2005 will be “materially and adversely” affected by falling sheet glass prices. The Chinese glass maker said it could not make a definite estimate of the impact on its finances for the time being. It is expected to announce the interim results at the end of August 2005. Luoyang Glass said demand for glass had started to fall in the 4Q of 2004 due to Chinese government measures to cool rapid economic growth. Demand was expected to slow further in 2005. The company said fierce price competition among sheet glass makers and its establishment of a number of production lines would also adversely affect the 1H 2005 result. As a result, Luoyang Glass said its sales volume and gross profit in the 1H 2005 would be lower than in the 1H 2004. The company“s gross profit margin was 17.92% in the 1Q 2005, down from 23.31% in the previous year 1Q. In the final week of April 2005, the sheet glass maker said unaudited net profit fell to CNY 2.32 million (USD 280,000) in the 1Q 2005 from CNY 29.37 million a year earlier due to lower margins. Shares of the company have fallen 8.5% over the past three months.