PILKINGTON owner Nippon Sheet Glass (NSG) has today released improved forecasts for the next six months on the back of stabilisation and some small improvements within its divisions.
NSG lost £47m in the three months to September 30 on sales of just under £1bn.
The Japanese glassmaker was badly affected by the global recession as the building and automotive markets saw a huge slump.
In a statement to the Tokyo stock exchange, it said: “The result for the first two quarters is, as expected, significantly down on the same period in the previous year when market conditions were considerably more favorable.
“The current quarter has however, seen operating losses stabilize and in some areas improve, with some group businesses making a return to positive operating profits.”
It has increased its sales forecast by 1.7%, to £3.94bn – although that will still show a year-on-year fall of 20%.
The second-quarter losses announced today follow a £70.5m loss in the first quarter and losses of £191m in its last financial year.
NSG has reduced its forecast for losses in the year to March 31, 2010, by £20m to about £310m.
It said: “The forecast for operating income and ordinary income represents an improvement from the forecast issued in May.
“This new revised forecast reflects the continued stability of the group’s markets, with the second half results expected to show a slight improvement from the second quarter, as further cost savings, and improvements in flat glass market prices, are realized.”
Its cost reduction programmes are expected to deliver just under £100m in savings in the current financial year.
Globally, NSG is reducing its staff levels by 15% – about 6,700 people – by March, 2010, with 6,200 people have already left.
NSG has closed a float line in St Helens, with the loss of 76 jobs, while a further 90 jobs were cut from its European Technical Centre in Lathom, near Ormskirk. Its Automotive Value Added operation, in St Helens, has also closed with the loss of 11 jobs.
A second line at its Greengate site in the town will not reopen until at least next April despite a £22m refurbishment last year.
Pilkington now employs fewer than 1,300 people across its five sites in the area.
