Nippon Electric Glass: April-June Qtr profit estimate raised

Nippon Electric Glass Co. said on 25 June 2009 that it expects a JPY 7 billion group pre-tax profit for the April-June quarter of the year, a decrease of 79% from the same period in 2008, but above th…

Nippon Electric Glass Co. said on 25 June 2009 that it expects a JPY 7 billion group pre-tax profit for the April-June quarter of the year, a decrease of 79% from the same period in 2008, but above the projections the company announced in late April. Revenue is seen dropping 40% to JPY 63 billion, an increase compared to an earlier forecast of JPY 50-60 billion, with operating profit now foreseen to drop 71% to JPY 10 billion, compared with initial estimates of no more than JPY 5 billion. The glassmaker said that thanks to the Chinese government“s massive economic stimulus package, it has seen a production increase at panel manufacturers in South Korea and Taiwan, resulting in rebounding sales of LCD substrate glass. As per volume, LCD substrate glass sales are expected to decrease in excess of 10% on the year, remaining more than 10% higher than the January-March period, and with only moderate price declines. Moreover, sales of glass fibers used to reinforce plastic increased as automakers made fewer production cuts.