3 June 1999: According to a recent report, Britain“s Pilkington Plc, one of the world“s largest float and automotive glass makers, is expected to report flat annual profits, held back by tough marke…
3 June 1999: According to a recent report, Britain“s Pilkington Plc, one of the world“s largest float and automotive glass makers, is expected to report flat annual profits, held back by tough markets and adverse currency moves. With takeover talk fading since French rival Saint-Gobain last month denied rumours of a bid, the focus is back on efforts by chief executive Paolo Scaroni to streamline the group. Analysts say that the figures may offer some encouragement. “Although the results will be basically flat, in the context of quite a difficult glass market – excluding automotive – the very fact they are able to stand still suggests some benefits are beginning to come through, albeit more slowly than they would have liked,” one analyst said. Pilkington is seen reporting pre-tax pre-exceptional profits of UK 120-130 million for the year to 31 March 1999, after 125 million a year earlier. But the company has already warned that it will take an exceptional charge of around UK 15 million to reflect the fall in value of its working capital in Brazil, following the devaluation of the real. Strong sterling and currency movements in Poland and Mexico will also crimp the results, the report said. Analysts forecast an unchanged dividend of five pence. Williams de Broe rates the shares a “sell” arguing that long-term recovery remains uncertain and further rationalization and restructuring charges will be needed in 1999/2000.