Pilkington profits fall 29 pc

Manufacturing News, Source : TheManufacturer.com
Published : 30 Oct 2002 10:05

British glassmaker Pilkington today reported a 29 per cent drop in pre-tax profits for the first half of the year.

The company posted a pre-tax profit of just £76 million, down from £107 million a year earlier.Turnover fell five per cent to £1.4 billion and operating profit came to £110 million.

Pilkington blamed difficult marketing conditions, particularly in its European building products business, for the dissappointing figures.

While the company admitted that it needs to increase efficiencies, it did not announce any job cuts, despite having cut around 14,000 jobs worldwide in the last six years.

“It’s a great credit that we have been able to produce a quite respectable result in difficult conditions,” said chief executive Stuart Chambers. “Seven years ago the Pilkington of old would not have been talking about pre-tax profits but losses.”

The group has, however, maintained its promise to keep its interim dividend of 1.75p a share. According to the Financial Times, Pilkington shares were flat at 56p in early morning trade today.

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