German glass products maker Schott AG reported on 16 December 2008 a net profit of EUR 182 million (USD 248.5 million) for fiscal 2007/08 ended 30 September 2008 versus a loss of EUR 51 million a year…
German glass products maker Schott AG reported on 16 December 2008 a net profit of EUR 182 million (USD 248.5 million) for fiscal 2007/08 ended 30 September 2008 versus a loss of EUR 51 million a year before. The company said it managed to meet its profit forecast despite the global economic crisis. It attributed the result to its successful efforts to retain and improve its position in many of its business fields via innovative products and close customer relationships. Earnings before interest and tax (EBIT) rose by EUR 22 million to EUR 289 million. Group sales increased 4% on the year to EUR 2.23 billion due to the dynamic development in the area of solar power, as well as the growth achieved in various divisions of the company, Schott said. Excluding exchange rate effects, sales would have been EUR 50 million higher. Demand for automotive components from the Electronic Packaging and Fiber Optics divisions decreased, while the sales of pharmaceutical tubing and pharmaceutical packaging were in line with expectations. Cash flow from business operations went up by 12% to EUR 254 million. The equity-to-assets ratio went up to 36% from 31%. Investments in fixed assets remained high at EUR 289 million. Schott said it expects demand from the automotive and household appliance industries to ease in fiscal 2008/09. Demand for tubing and packaging products for the pharmaceutical industry is expected to remain stable. Schott also forecast that the growth of its solar power business will slow down under the impact of the financial crisis.