The global glass manufacturer Nippon Sheet Glass (NSG Group), which owns the Pilkington brand, reported a decline in profits. In its quarterly report, the company stated that operating profit decreased across all divisions, particularly in its architectural division, which was affected by the economic downturn in Europe.
The group's total revenue for the first quarter increased by 4.1% year-on-year, reaching $1.5 billion, while operating profit decreased by 67.3% to $33.1 million.
The NSG report notes that the slowdown in the European economy was more severe than anticipated in earlier forecasts. This slowdown led to a decrease in sales volumes and lower prices for sheet glass. Other costs, including labor, continue to rise.
This situation caused the premature closure of a float line at the Weiherhammer plant in Germany ahead of a scheduled cold repair.
The situation in other divisions is better. There was strong demand for solar glass. A new plant that began production in Malaysia in December last year contributed to the profit. The conversion of a float line to a solar line at the plant in Ohio, USA, also delivered good results.
The automotive division increased sales by 12.7%, and the technical glass division saw a 2.4% revenue increase due to higher demand, although profits declined due to rising other costs.
VFF previously reported that the window market in Germany fell by 8.9% in 2023 and is expected to fall by another 6.4% in 2024.
Photo: NSG Group
German Flat Glass Price Index (2021 average = 100)
NSG reports a decline in sheet glass profits due to economic downturn in Europe
ID no: 23325
