3 December 1998: The UK“s Pilkington Group operating profit and depreciation generated UK 283 million in fiscal 1998, UK 14 million less than last year, according to a recent press report. Cash flow …
3 December 1998: The UK“s Pilkington Group operating profit and depreciation generated UK 283 million in fiscal 1998, UK 14 million less than last year, according to a recent press report. Cash flow from operations totalled UK 184 million, a reduction of UK 104 million on the previous year. Dividends received from joint ventures and associates totalled UK 17 million compared with UK 13 million in 1997. Acquisitions in Poland, China, South America and the United Kingdom cost UK 27 million compared with UK 10 million in 1997. Proceeds from business divestment and asset disposals totalled UK 98 million compared with UK 101 million in 1997. The Group had 35,400 working for the group worldwide at the end of the fiscal year 1998 (31 March 1998), the report said. Of these 17% were employed in the United Kingdom, 46% were employed in the rest of Europe and 17% in the rest of the world. Meanwhile, the report also said that Pilkington acquired sufficient shares in both Pilkington Sandoglass in Poland and Changchun Pilkington safety glass company in China to convert these former associates into subsidiaries. A technical mirror business was acquired from the Kenmore group and an addition holding was acquired in Santa Lucia Crystal in Argentina to take the total Pilkington holding to 100%. The automobile glass replacement businesses in Canada and New Zealand were sold. The overall effect of these changes were to increase turnover by UK 16 million and to increase operating profit by UK 3 million. In addition, the group made a profit of UK 20 million from the sale of its holding of shares in the joint venture Pilkington Optronics Ltd. Pilkington Group“s turnover from continuing operations for fiscal 1998 showed an increase of 2% on the previous year at constant exchange rates. Sales volumes were 5% up on 1997 although lower selling prices reduced the effect on sales value. Sales by product analysis shows that building products accounted for 49% of turnover, automobile products for 44% of turnover and technical products for 7% of turnover. Operating profits from continuing operations before exceptional charges of UK 135 million were 11% down on the previous year. Flat and safety glass profits in Europe were up 28% on 1997 due to sales volume growth and cost savings from substantial restructuring programmes in automobile and building products. In North America profits of UK 35 million were almost half those of last year due to production problems with plant relocations and new product introduction. Profits of UK 44 million were the same as last year. Joint ventures contributed UK 290 million to turnover and UK 56 million to operating profits.