British industrial glassmaker, Pilkington Plc, reported a rise in half-year earnings that was in line with expectations and said European markets were improving.
Pilkington said its pre-tax pre-excep…
British industrial glassmaker, Pilkington Plc, reported a rise in half-year earnings that was in line with expectations and said European markets were improving. Pilkington said its pre-tax pre-exceptional profits rose 18.2% to UK 78 million (US$ 128.7 million) in the six months ended 30 September, 1999 compared with 66 million in the year earlier period. Analysts had forecast profits in a range from UK 71 to 80 million. “Our first half performance is encouraging,” said Pilkington Chairman Nigel Rudd in an earnings statement. The company said market conditions for its products were improving in Europe and that North American markets were holding steady. However, South America continued to experience a difficult trading environment. Pilkington said building product sales were down 7%, but that its Building Products Europe division, which accounts for 60% of the UK 565 million worth of building products sales, has seen volumes recover and prices strengthen. Pilkington said its largest European float glass plant in Sweden has only recently returned to production after a three month hiatus for repairs. Pilkington also said that as part of its ongoing restructuring programme it had decided to close its automotive business plant in Lathrop, California. It said it would spread the UK 12 million cost of the closure over two years. Pilkington did not immediately say how many jobs the closure would entail.