Industry Financials -- Only Online USGlass

Only Online - USGlass September 2006

Industry Financials

Vitro Continued to Deliver Strong Results in Second Quarter of '06
Vitro S.A. de C.V. has announced its second quarter unaudited results. The company's consolidated sales increased 5.7 percent and EBITDA rose 17.8 percent. Consolidated EBITDA margins were up 160 basis points to 16.3 percent for the quarter. Excluding divestitures of Plasticos Bosco in April 2005, Quimica M in March 2006 and the acquisition of Vidrios Panamenos in April 2006, consolidated sales rose 5.8 percent and consolidated EBITDA increased 19.4 percent during the same period.

"For flat glass, trends remain positive, with strong growth in the domestic construction and auto original equipment manufacturer markets, as well as at our foreign subsidiaries. As anticipated, exports declined as we refocus on domestic markets. In fact, on a comparable basis, excluding Quimica M, sales rose 3 percent and EBITDA, without inventory reduction effect, grew 64 percent for the quarter and 46 percent for the first half of the year. This is a sign of the new trend for the flat glass business unit," said Alvaro Rodriguez, chief financial officer.

PPG Reports Record Sales
PPG Industries of Pittsburgh reported record sales and earnings for any quarter with second quarter net income of $280 million, or $1.68 a share. The net income includes after-tax earnings of $12 million, or 7 cents a share, for net legal and insurance matters, and an after-tax charge of $4 million, or 3 cents a share, to reflect the net increase in the current value of the company's obligation under its asbestos settlement agreement from May 2002. Sales were $2.82 billion, surpassing the old record set in the second quarter of 2005 by 6 percent, according to the company.

That compares with second quarter 2005 net income of $231 million, or $1.34 a share, including after-tax charges of $12 million, or 7 cents a share, for debt refinancing, and $2 million, or 1 cent a share, to reflect the net increase in value of the asbestos settlement agreement. Sales for the second quarter of 2005 were $2.66 billion.

For the first six months of 2006, PPG recorded net income of $464 million, or $2.79 a share, which includes after-tax earnings of $12 million, or 7 cents a share, for net legal and insurance matters; and after-tax charges of $23 million, or 14 cents a share, for business restructuring; and $10 million, or 6 cents a share, to reflect the net increase in the current value of the company's obligation under the asbestos settlement agreement. Sales for the first half of 2006 were $5.46 billion, according to the company.

For the first six months of 2005, PPG recorded net income of $326 million, or $1.89 a share, which included after-tax charges of $91 million, or 52 cents a share, for a legal settlement; $12 million, or 7 cents a share, for debt refinancing; and $7 million, or 4 cents a share, to reflect the net increase in the value of the company's obligation under the asbestos settlement agreement.

Sales for the first half of 2005 were $5.15 billion.

Coatings sales increased $129 million, or 9 percent, as a result of higher volumes, especially in Asia and Europe, improved selling prices across all businesses, the impact of acquisitions and the positive impact of stronger foreign currencies, according to the company.

Glass sales increased $30 million, or 5 percent, because of higher volumes across most businesses. Operating earnings were down $4 million due to the impact of inflation, lower equity earnings and legal matters. These were substantially offset by lower manufacturing and overhead costs, reported PPG.

NSG Group Announces Strong Financial Position
The transaction through which Nippon Sheet Glass Co. Ltd. (NSG group) fully acquired Pilkington was completed in June, but Pilkington's performance data was reflected in the company's balance sheet at the end of this quarter, and will be reflected in its profit and loss statement for next quarter.

Sales for the first quarter of 2006 were $545 million (USD) and operating profit for the quarter was $11 million (USD). Ordinary profit for the period fell to $3.6 million (USD).

Interest-bearing liabilities at the end of the 2006 first quarter rose to approximately $5.8 million (USD). Cash and deposits after paying acquisition cost and combining Pilkington data was approximately $1.3 million (USD).