NSG Financial Results Show Increased Revenue, Slightly Lower Profits

Nippon Sheet Glass’ (NSG) architectural business grew from its first three quarters of 2017 to the same period in 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 for the same period in 2017. However, the operating profit fell to $165.8 million from $184.9 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.

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. 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 USD to JPY exchange rate on February 19, 2019.

Glaston Reports Strong Fourth Quarter

Glaston’s orders received grew from $24.5 million* in the third quarter to $38.3 million in the fourth quarter of 2018. The company’s total orders received for the year was $121.5 million, which is up from its 2017 total of $117.1 million.

Its net sales totaled $31.4 million for the fourth quarter, an increase from its third quarter results of $26 million. Glaston’s net sales for 2018 were $114.2 million, which was actually down from 2017’s total net sales of $124.7 million. The company’s fourth quarter operating profit was $1.2 million, which was nearly double its third quarter operating profit of $678.928. Glaston’s operating profit in 2018 was $3.8 million, down from $5.6 million in 2017.

“Glaston’s development in the final quarter of 2018 was good. The glasstec fair was strongly reflected in the development of the fourth quarter, and indeed of the whole autumn. The fair was a success for Glaston, and our fourth quarter order intake grew 18 percent from the comparison period,” says president and CEO Arto Metsänen. “We received a number of large orders from different parts of the world, and the pick-up in the North American market was particularly positive. Net sales for the quarter fell slightly compared to the corresponding period last year.

“I am particularly satisfied with our profitability development in the final quarter. Our comparable operating profit improved significantly, and the comparable operating profit margin was a record 8.8 percent.”

At the end of November, Glaston divested of its tools business in accordance with the company’s strategy, according to Metsänen. The company said sale of the business had a slightly positive impact on the group’s comparable operating profit. The company also acquired Bystronic late in 2018.

2019 Outlook

The company’s business is seasonal and, historically, the first quarter of the year is generally the weakest and the fourth quarter the strongest. Net sales and comparable operating profit are expected to be low for the first quarter of 2019, due to the low number of new orders received in the third quarter and the beginning of the fourth quarter of last year.

Glaston plans to disclose information on its outlook for the whole of 2019 at a later stage.

*Editor’s Note: Currency conversions reflect the USD to EUR exchange rate on February 12, 2019.

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