Nippon Sheet Glass Company, Limited Business report FY2008
|Financial overview||( in millions of JPY )|
|Sales||739,365||865,587||(14.6)||-Sales and income fell from what they were the previous year. The drop was due to a sharp decrease in demand in the second half of the year, which followed relatively stable sales during the first half.|
|Current net income||(28,392)||50,416||-|
|Automotive Glass Business|
|Sales||299,096||364,818||(18.0)||Refer to the following:|
Automotive Glass Business
- Sales in Europe made up approximately 51 percent of the Division's total revenue.
- Compared with FY2007's performance, sales decreased because of a significant fall in demand from automakers in the second half of the business year. Sales of aftermarket glass, however, were more stable than those of OEM glass.
- Operating income fell from what it was in FY2007, mainly due to a significant decrease in sales volume to automakers in the second half of the year, whose pace in responding to the global economic downturn exceeded that of the company's, which included making adjustments to both production and costs.
- Sales in North America accounted for 21 percent of the Division's total revenue.
- Although the aftermarket glass division maintained the same levels of sales and operating income as those of the previous year, the OEM glass division suffered a significant drop in sales, hit by the weakening market in the second half of the year.
- Some of the other factors for the decrease included rising fuel costs throughout the year and repair costs for a float glass kiln.
- Sales in Japan accounted for 16 percent of the Division's total revenue.
- Both sales and income were severely hit by a sudden fall in demand following automakers' moves to cut down their production volumes in the fourth quarter, as vehicle sales decreased on a global basis.
- Both sales and income on a full-year basis, however, were severely hit by the sudden fall in demand following automakers' moves to cut down their production volumes in the fourth quarter, as vehicle sales decreased on a global basis.
- Sales were relatively stable, since the economies in the "other areas" contracted at a much slower rate than that in advanced countries. The overall rate of growth, however, showed a sharp fall in the second half of FY2008.
-The Company announced plans to close its automotive glazing plant in Eisenerz, Austria. The facility is operated by its subsidiary Pilkington plc. (From a press release on Nov. 27, 2008)
|R&D Expense||( in millions of JPY )|
|Automotive Glass Division||3,200||5,200||3,519|
-The Company conducts research of automotive glass at its technology research center in Itami city, Hyogo prefecture.
-In the automotive glass business, the Company aims to manage the business more efficiently by integrating the R&D organization of Pilkington with its own.
R&D activities (Automotive Glass Division)
- Functions of the Technical Department include R&D, development of glazing systems, introduction of new models, implementation of new production processes, and engineering.
-The Company continues to focus its development activities on making wider and more complex shaped windshields, as well as on a new roof glazing technology, which makes a wider opening possible in passenger vehicles. It conducts these development activities by collaborating closely with car manufacturers, which have already used some of the Company's development achievements in their new vehicle models.
- The Company developed and introduced a 100 percent accurate, automatic defect detection system for use on mass production lines.
- The Company developed new production processes to manufacture automotive side glass.
|Capital Expenditure||( in millions of JPY )|
|Automotive Glass Division||15,600||21,200||20,878|
Automotive Glass Division
Investments outside Japan
- Major investment activities included regular repair work on a float glass kiln to manufacture sheet glass in the US, production process improvement projects at its plants in Italy and South America, and a new plant construction project to manufacture automotive glass in India.
-The Company announced plans for a significant expansion of its windscreen glazing capacity in Brazil. The Company will construct an additional windscreen production line adjacent to its existing facility at Cacapava, Sao Paulo Province. Production rollout is expected to be in early 2010, with a projected increase in its annual windscreen production capacity by more than 1 million. The line will be operated by its subsidiary Pilkington plc. The total investment in the project will be around 43 million euros (approx. 7.2 billion yen). (From a press release on Aug. 7, 2008)