NSG Group Q1 Results Announced

Group Finance Director Mike Powell said “the results for Q1 reflect stabilised global market conditions. The Automotive OE market is showing an improving trend, due to government incentive schemes and manufacturers restocking and AGR achieved a robust performance, with results consistent with the prior year.  Building Products recorded a loss, reflecting challenging conditions in the construction sector, but the Solar Energy business showed continuing steady volume growth year-on-year. In Specialty Glass, demand is increasing as underlying market fundamentals improve. The benefits from cost reduction programmes are helping all business line results”. Group revenues in Q1 were JPY 144 billion. This compares with JPY 153 billion in the final quarter (Q4) of FY 09 and JPY 221.4 in Q1 last year).  Overall, the Group made an operating loss (before amortization) of JPY 6.4 billion (compared with a operating loss of 7.1 billion in Q4 FY09 and an operating profit of JPY 16 billion in Q1 last year). At the business line level, BP revenues were JPY 62 billion and the business line made an operating loss (before amortisation) of JPY 2.9 billion.In Automotive, revenues were JPY 63 billion and operating profit (before amortisation) JPY 0.4 billion. Specialty Glass revenues were JPY 15 billion, with a break even profit result.
 
Mike Powell told analysts in Tokyo “we expect market demand for all our business lines to increase, with business conditions remaining stable or improving steadily in line with the global economy. The price increases Building Products implemented in June should contribute further revenue and profitability. 
 
Our Solar Energy business is still a key area for expansion, with the Group well placed to retain its leading position within the thin film market. Overall, our cost-saving programmes and the recovery we are seeing in market conditions will improve our second half-year results and re-establish profit growth from FY2011. Meanwhile, as we have confirmed today, the banks have shown confidence in our business by helping us secure JPY 47.5 billion in new funding. This will be used to repay maturing debts.