18 June 1998: Britain“s Pilkington Plc, the world“s biggest manufacturer of float and automotive glass, announced higher-than-expected pre-tax profits recently, and said it was making progress on it…
18 June 1998: Britain“s Pilkington Plc, the world“s biggest manufacturer of float and automotive glass, announced higher-than-expected pre-tax profits recently, and said it was making progress on its cost-cutting and restructuring. “The actions we have taken go beyond the targets we set last year and are now having an impact on Pilkington“s performance. We expect this to be reflected in future results,” Chairman Nigel Rudd said in a statement. Pilkington said pre-tax profit before exceptional items dropped to UK 125 million (US$ 204.8 million) in the year to end-March 1998 from UK 132 million a year earlier. The figures include UK 13 million from associated companies, which are now included after accounting changes. The earnings figure, and also a restructuring charge of UK 225 million, came in above analysts“ forecasts. Experts had predicted pre-tax profit of between UK 108 million and UK 116 million and exceptional charges of up to UK 200 million. The total dividend of 5p, unchanged from a year earlier, was in line with forecasts. Pilkington said the restructuring charge was higher than indicated originally because its rationalisation programme, initiated by new Chief Executive Paolo Scaroni, was more widespread and and its lay-offs were greater than expected. The company said it had cut its overhead cost base by UK 100 million per year. The company plans to close around 70 processing and distribution outlets by the end of this year, including half of those in Britain and most in Germany. More than 3,600 jobs will be lost, while the company eliminates losses of UK 30 million pounds a year.