Volume 48, Issue 3- March 2013

FinancialFlash

NSG Reports 9-Percent Decrease in Operating Third-Quarter

The NSG Group attributes low levels of activity in its major markets and challenging market conditions as cause for a recent drop in revenues. The company saw a 9-percent decrease in its cumulative group revenues for the third-quarter of fiscal year 2013. Revenues dropped from $4.5 billion (U.S. dollars) in the third-quarter of 2012 to $4.2 billion for the same period in 2013. NSG reports an operating profit of $50.8 million for the quarter, compared with $129.7 million for the same period of last year.

Looking at the architectural market specifically, the company reported revenue of $1.8 billion for the quarter, compared with $2.0 billion for the third quarter of 2012. According to the results, while the architectural business improved during the third quarter, profitability remains weak and the business recorded a cumulative loss for the first three quarters. Volumes are significantly below the previous year and continued to be generally weak during the third quarter. In Europe, which represents 38 percent of the company’s architectural sales, revenues and profits fell from the previous year. Excluding solar energy dispatches, architectural volumes fell by approximately 10 percent from the first three quarters of the previous year. Revenues in Japan, representing 34 percent of architectural sales, were below the previous year, with improving domestic markets being more than offset by reduced dispatches of solar energy glass.

In North America, which represents 9 percent of architectural sales, revenues and profits were below the previous year. Dispatches of solar energy glass fell from the previous year and domestic residential volumes continued to improve during the third quarter.

In the rest of the world, revenues improved from the previous year with a full period of sales generated by the group’s solar energy float line in Vietnam. Volumes in South America were slightly below the previous year. Market conditions in South East Asia were challenging, and the group’s solar energy rolled line in China experienced weak demand.

Glaston Corp. Works to Strengthen Balance Sheet
During its Extraordinary General Meeting, Glaston Corp.’s board of directors was authorized “to resolve on one or more issuance of shares.” The authorization contains the right to issue new shares or dispose of the shares in the company’s possession, up to 86 million shares, according to the company. The authorization, which is to be used for executing or financing of material arrangements from the company’s point of view, such as restructuring of the company’s financing structure or implementing business arrangements or investments, or for other such purposes determined by the board of directors, also entitles the board of directors to decide on a directed issue. The authorization is effective until June 30, but does not supersede the earlier authorization granted by the general meeting on April 5, 2011.

The company previously reported it is working to strengthen its balance sheet and financial position through a number of initiatives, including the recent sale of Albat+Wirsam (see related story on page 34). In addition, Glaston officials say they plan to sell the company’s factory property complex located in Tampere, Finland by March 31, in an effort to reduce the company’s senior loans. The company signed a letter of intent to sell and lease back its factory property complex and plans to sell the property to real estate group Tampereen Mummu ja Poika Oy for approximately $16.5 million U.S. dollars (12.5 million euros). In the letter of intent, the parties also agreed to sign a long-term lease contract under which Glaston will rent the facility for approximately $1.5 million a year, beginning in April 2013. The property complex consists of four plots and five buildings. The sale is estimated to be completed by the end of this month.

In addition, Glaston agreed on the implementation of a new three-year credit facility with its current lenders, if certain prerequisites are fulfilled.


USG
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