NSG Group, the parent company to Pilkington, announced strong Q2 performances in its architectural and technical glass sectors, which helped offset higher energy and material costs.

The group recorded a Q2 revenue of $2.6 billion. Within that, the architectural segment represented 49% of the group’s cumulative revenues with a Q2 revenue of $1.3 billion. Architectural glass includes the manufacture and sale of flat glass, various interior and exterior glazing products for commercial and residential applications and glass for the solar energy market. NSG’s Q2 runs from April to September 2022.

NSG states that in Europe there are signs of a slight decrease in the architectural sector; however, revenues continued to increase while operating profits decreased compared to last year. Demand for new construction and renovations in Europe continued but rising inflation and interest rates “dampened business and consumer confidence.”

Sales continued to increase in the Americas, NSG reports. This reflects strong demand, especially for solar glass.

NSG forecasts that for 2023 demand and supply chain issues will improve, but concerns about higher energy costs and a potential recession will remain in Europe and the U.S. NSG expects there to be a favorable domestic market in North America and continued tight demand and supply issues in South America. The group still expects higher revenues entering 2023 due to price improvements and a weaker Japanese Yen.