1 October 1998: UK glass and building products group Pilkington Plc has said it “expects to report progress in this current year” despite economic uncertainty, volatility, and deteriorating trading co…
1 October 1998: UK glass and building products group Pilkington Plc has said it “expects to report progress in this current year” despite economic uncertainty, volatility, and deteriorating trading conditions in many of its markets. The recent trading statement marks a new policy for companies of on-the-record progress reports a month ahead of full results. The group“s interim results statement is due for release on 29 October. Pilkington said exchange rate movements had adversely affected translation of overseas profits into sterling by an estimated UK 13 million in the first five months of its financial year. It said this figure included UK 10 million as a result of currency devaluation on interest payable in Poland and Mexico. In Europe, Pilkington said float glass prices had been stable to firm in the first five months “and are expected to remain firm,” while it expected profits to increase in building products in Europe because of cost cuts and strong demand. Pilkington said its automotive business in the US had seen a “substantial” decline in profit in the first five months largely because of a strike at General Motors which cost about UK 7 million. It also said the weak Japanese yen had cut export sales of float glass and automotive glass to Japan and the impact in the first half was likely to be around UK 4 million. Pilkington said good progress was being made in its restructuring programmes. It added that net borrowings at the end of August were UK 617 million compared with UK 559 million at the end of March, slightly better than expected, with net gearing “similar to the 62% reported at the end of March 1998.”