Automotive sector

Glass Group’s fortunes improve, despite problems in the automotive sector

Nippon Sheet Glass, the parent company of St Helens glassmaker Pilkington, today reported better first-half results, although its performance was hit by shortages of computer chips in the automotive sector.

The group recorded a 31% increase in sales in the period from April 1 to September 30, to £1.9 billion, compared to £1.45 billion in the same period last year. He said the COVID-19 related lockdowns had a particularly big impact on revenue during the first quarter of the previous year.

Pre-tax profit of £96.49 million compared to a pre-tax loss of £104.65 million the previous year.

The group forecasts annual revenue of £3.67bn and pre-tax profit of £124m.

NSG said its markets saw mixed conditions in the second quarter of the year.

Architectural glass markets were generally strong with sustained levels of construction and renovation activity in many regions.

Demand for solar glass was also positive.

In addition, technical glass markets have also benefited from high levels of consumer demand in various fields.

Automotive markets, however, were increasingly weak, with shortages of computer chip components forcing the group’s major automotive customers to curtail production.

Architecture, which accounts for 46% of cumulative revenue, includes the manufacture and sale of flat glass and various interior and exterior glazing products in the commercial and residential markets. It also includes glass for the solar energy sector.

Automotive, with 47% of combined sales, provides a wide range of automotive glass for new vehicles and for replacement markets.

Technical Glass, which accounts for 7% of cumulative sales, includes several discrete activities, including the manufacture and sale of very thin glass used as protective glass for screens, lenses and light guides for printers, and fiberglass components for engine timing belts.

Other transactions include general expenses, consolidation adjustments, certain small businesses not included in the covered segments and amortization of other intangible assets related to the acquisition of Pilkington.