Date: 18 May 2010
Headlines were as follows: The Group’s full-year results were better than our previous forecast Results for the fourth-quarter reflect stabilized markets and the restructuring actions we have taken New President and CEO appointed Major restructuring programme completed, with cost savings delivered A significant improvement in debt maturity profile was achieved during the year Continued profit improvement forecast for FY2011Details The Group’s full-year results were better than our previous forecastCumulative Group revenues for the year were ¥ 588bn (FY09: ¥ 739bn), with a profit of ¥ 0.9bn (before amortization) (FY09: ¥ 23bn). We were able to report that, controlled cash management and cost reduction continue to mitigate the impact of the challenging conditions in our markets. The Automotive business is holding up well, despite the expiry of some government scrappage incentive programmes.Challenging conditions in our Building Products markets continue. Specialty Glass results were buoyant, reflecting improving consumer demand.
Automotive achieved revenues of ¥ 265bn and an operating profit of ¥ 9.9bn (before amortization). Building Products revenues were ¥ 244bn, with an operating loss of ¥ 1.3bn (before amortization). Specialty Glass revenues were ¥ 66bn, with an operating profit of ¥ 3.6bn.
Results for the fourth-quarter reflect stabilized markets and the restructuring actions we have taken
Group revenues for the fourth quarter (31 December 2009 31 March 2010) were ¥ 145bn and operating profit (before amortization) was ¥ 3.8bn. Demand in our Automotive OE markets is generally holding up and AGR remains resilient. The improvement in Specialty Glass profitability reflects strengthening market conditions. Profitability in Building Products has been underpinned by the delivery of cost savings, despite lower seasonal demand. Overall, the continuing benefits from our cost reduction programmes are helping results all three business lines.
New President and CEO appointed
Craig Naylor has joined the Group as CEO Designate. He will take over as President and CEO on 29 June from Katsuji Fujimoto, who becomes non-executive chairman of NSG Group.
Major restructuring programme completed, with cost savings delivered
The restructuring programme was completed as planned, with 2,200 employees having left the Group during FY2010, bringing the total to 6,700 reductions. Cost savings of ¥ 16bn were realized during FY2010. The cost of the restructuring programme charged to the income statement during FY2010 was ¥ 6.6bn, in line with the plan.
A significant improvement in our debt maturity profile achieved during the year
We need loans in place to fund our business. It makes sense for maturities (i.e., the time before they expire) of such loans to be as far into the future as possible. Cumulatively, we refinanced ¥ 164bn of debt during the year. In the fourth quarter, ¥ 52bn of new debt facilities, maturing in September 2013, were signed on 24 March 2010. This means that all our FY2011 maturities have now been refinanced.
Continued profit improvement forecast for FY2011
We are forecasting a full-year operating profit before amortization of ¥ 28bn on revenues of ¥ 600bn. Our cost reduction programmes are expected to contribute ¥ 19bn of savings for the financial year FY2011. Our key objective for FY2011 is to continue improving manufacturing and quality performance while at the same time realizing benefits from the restructuring programme.
Said Group Finance Director Mike Powell: "The Board remains confident in the Group’s long- term prospects and are maintaining the full-year dividend (¥6 per share) paid to our shareholders. We will be working on the update of the Group’s Medium Term Plan, which we will announce to the market in November 2010, at the time of our quarter 2 results."
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