A good year for glass

Manufacturing News, Source : TheManufacturer.com
Published : 26 May 2005 9:56

Glassmaker Pilkington exceeded analysts’ expectations by announcing a 26 per cent hike in pre-tax profits today.

Commenting on the results for the year to 31 March 2005, chairman Sir Nigel Rudd said the group continued to benefit from improvements in its operational efficiency and continuous cost reduction programmes. Pilkington now expected to begin the next stage of its ‘cash for growth’ strategy and would be looking for “profitable growth opportunities."

Profits before tax, amortisation of goodwill and exceptionals was up from £152 million to £180 million, equivalent to an increase of 26 per cent at constant exchange rates

“We have seen a good performance in automotive, with building products holding up, despite variable trading conditions in our markets around the world,” said Rudd. The Automotive business had been involved in a record number of new product launches over the year and had benefited from strong sales of many existing models equipped by Pilkington. Building Products' results in Europe were

affected by low industry capacity utilisation, but outside Europe the division’s results continued to improve.

Building Products' sales, including joint ventures and associates, were £1.4 billion, broadly in line with the previous year, while operating profits were essentially unchanged at £144 million.

“Manufacturing performance is a critical element of this success and there is a continuing requirement both to ensure we implement best practice in every plant worldwide and to reduce the cost base in line with our objectives,” Rudd said. To support this, a worldwide manufacturing organisation for the business line had been created which would include a central manufacturing improvement team and technology group.

Automotive Products' sales were £1.2 billion, down four per cent from the previous year. At constant exchange rates, sales were broadly the same as last year. Operating profit improved by 20 per cent to £107 million. Global supply chain integration had brought cost savings, optimisation of plant loading and improved service to customers in both car manufacturing and windscreen replacement companies, Pilkington said.

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