Nippon Sheet Glass Co. said 24 May 2008 that group pretax profit is likely to fall 41% to JPY 18 billion for the year ending March 2009, with higher crude oil prices driving up fuel and transport cost…
Nippon Sheet Glass Co. said 24 May 2008 that group pretax profit is likely to fall 41% to JPY 18 billion for the year ending March 2009, with higher crude oil prices driving up fuel and transport costs. Vice president Stuart Chambers, who will take over as president on 27 June 2008 suggested that struggling North American automotive glass operations may need to be restructured. Interest payments of JPY 20 billion resulting from the acquisition of Pilkington Plc and JPY 23 billion in goodwill amortization are expected to result in further deterioration in earnings. The dividend payout will remain JPY 6 a year, however. Operating profit is estimated to plunge 33% to JPY 31 billion. An JPY 8 billion reduction in costs is unlikely to offset the impact of pricier crude oil. In calculating its earnings, the company is assuming USD 100 per barrel for North Sea Brent crude. Each rise of USD 1 in crude prices eats into operating profit by JPY 400 million. Sales are seen growing 2% to JPY 880 billion, with net profit down 60% at JPY 20 billion in the absence of an extraordinary profit that helped the previous fiscal year“s bottom line. The addition of Pilkington helped boost Nippon Sheet Glass“ overall sales 27% to JPY 865.5 billion for the year ended 31 March 2008. Pretax profit jumped 280% to JPY 30.4 billion.