NSG has reported an increase in its fiscal third-quarter automotive revenue, due mainly, according to a company statement, to the translational impact of a weaker Japanese Yen.
NSG, parent company to Pilkington, has reported that its fiscal third-quarter automotive revenue has increased to USD 2.2 billion (JPY 224.7 billion), compared to USD 1.7 billion (JPY 176.9 billion) in the same period of the prior year. Profits for the division were USD 66 million (JPY 6.7 billion), compared to USD 27 million (JPY 2.7 billion) in the year-ago period.
“In the automotive business, revenues improved from the previous year due mainly to the translational impact of a weaker Japanese Yen,” according to a company statement. “Markets remain challenging, particularly in Europe.”
Europe represents 46% of NSG’s automotive sales. Light vehicle sales in the European Union are at their “lowest level for up to 20 years,” according to officials. However, demand for vehicles has now stabilized and the company says it is seeing some signs of recovery. In the original equipment (OE) sector, profits grew largely due to cost savings from the restructuring programme. Results in the automotive glass replacement division also improved thanks to increased demand, according to the company.
Looking to Japan, which represents 16% of NSG’s automotive sales, OE volumes were stronger than the prior year, officials reported. A weaker Yen supported vehicle exports. Domestic vehicle demand in the country also improved through the quarter. The automotive glass replacement demand was “stable”.
In North America, which represents 24% of NSG’s automotive sales, OE markets improved, according to the company. Light vehicle sales were up 5% year-over-year. Meanwhile, automotive replacement revenues and profits were “similar to the previous year,” officials reported.
Company-wide, the NSG Group reported that its cumulative group revenues were up 17% for the third-quarter of the fiscal year to USD 4.4 billion (JPY 451.2 billion).