PILKINGTON owner Nippon Sheet Glass saw its losses widen despite stabilising market conditions.

The group reported a loss of £303m for the year to March 31, compared to a £208m loss in 2009.

Sales were down 20% at £4.3bn as the recession hit housing and automotive – key markets for glass – particularly hard.

But the group says it expects "gradual improvements in profitability" this year as markets recover.

It has also launched a cost-cutting programme that has seen it shed around 200 jobs in this region in the last year.

NSG, which bought St Helens-based Pilkington in 2006, employs 1,300 people in St Helens and Ormskirk.

It said: "The first two quarters of the year were particularly severe with recessionary conditions prevalent in most of the major countries in which the group operates. From the third quarter of the year market conditions gradually stabilised.

"In the fourth quarter, most of the group’s major markets stabilised at levels significantly better than earlier in the year, although still well below historically normal levels.

"The group’s building products markets suffered from low levels of commercial and residential construction activity.

"The underlying demand for building products glass is closely linked to general economic activity, but changes in economic growth take time to feed into demand for glass due to the time lag inherent in residential and commercial projects from approval to construction.

"Consequently, the increase in demand for building products glass, following the improving conditions in the final two quarters of the year, was marginal.

"The group’s automotive markets demonstrated improvements through the year, although concerns remain that demand may soften as government support programs come to an end."