NSG Financial Results Show Increased Revenue, Slightly Lower Profits

Nippon Sheet Glass’ (NSG) architectural business grew from the third quarter of 2017 to 2018 according to the company’s FY 2019 Third Quarter Consolidated Financial Results. Segmental results for the third quarter to December 31, 2018 showed an external revenue for the company’s architectural business of $1.69 billion* (¥ 186,716 million) compared to $1.62 billion (¥ 179,623 million) for the same period in 2017. However, the operating profit fell to $165.8 million (¥ 18,346 million) from $184.9 million (¥ 20,457 million) for the same period a year prior.

The architectural segment represents 41 percent of NSG’s cumulative sales. This segment includes the manufacture and sale of flat glass and various interior and exterior glazing products within the commercial and residential markets. It also includes glass for the solar energy sector. Europe remained the company’s strongest market within the architectural segment, followed by Asia and then the Americas.

NSG’s Architectural Segment Results

  Q3 to Dec. 31, 2018 Q3 to Dec. 31, 2017
External revenue $1.69 billion $1.62 billion
Operating profit $165.8 million $184.9 million
External revenue by geographical regions:


Europe $657.4 million $635.2 million
Asia $630.4 million $586.8 million
Americas $399.7 million $401.3 million

Source: NSG’s FY 2019 3rd Quarter Consolidated Financial Results

Architectural revenues improved from the previous year due to higher volumes, particularly in Europe, and increased dispatches of glass for solar energy, according to the company. However, profits fell due to the company’s furnace cold repair schedule and an increase in energy-related input costs.

In Europe, which represents 39 percent of the company’s architectural sales, markets showed strong demand leading to high levels of capacity and a robust pricing environment. Profits fell, reflecting a cold repair in Germany earlier in the year and an increase in input costs.

Asia represents 37 percent of the company’s architectural sales. Revenues in the region improved but profits fell slightly. Demand in Southeast Asia was strong, although new competitor capacity helped generate an increasingly competitive marketplace, according to the company. However, NSG benefited from an increase in sales of glass for solar energy.

The Americas represent 24 percent of NSG’s architectural sales and revenues were flat while profits decreased slightly. The company attributes this largely due to the adoption of hyperinflationary accounting in Argentina. In North America, the company benefitted from full operation of the Ottawa plant and a buoyant domestic market.

*Editor’s Note: Currency conversions reflect the rate on February 19, 2019.

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