Pilkington: Q1 Results Show Further Improvement

The figures reflect increased market stability, with further improvement in some areas. Cost savings from the restructuring are showing through in the results, with joint ventures and associates performance improving. The Group returned to positive net income during the quarter and has raised its forecast for the rest of the year.
 
Group Finance Director Mike Powell said “These are encouraging results, reflecting improving markets, but also increased demand for our products and some good work on increasing pricing. However, we still have a long way to go, as the profit that’s left after interest and tax is still very close to zero!”
 
Cumulative Group revenues for the quarter were ¥ 148bn (up ¥4 bn on Q1 last year) with a profit (before amortization) of ¥ 6.9bn (compared with a ¥ 6.4bn loss in Q1 FY10). Sales were up 3 per cent (9 per cent at constant exchange rates). 
 
Results for Building Products reflect improving market conditions and cost savings. Revenue and profits in Automotive were ahead of last year, due to robust OE demand and a resilient performance in AGR. Specialty Glass showed strong growth in profitability. 
 
Most of the Group’s joint ventures and associates profits have improved, compared to the same period last year. The Group has raised its forecast for the rest of the year. The revised forecast for the full year reflects an expectation of continued improvements in the first half and increasing profits from affiliated companies.