22 October 1998: Asahi Glass Co. of Japan said it has slashed its consolidated net profit estimate for the year to March 1999 to 12 billion yen from 26 billion yen.
The downward revision was blamed o…
22 October 1998: Asahi Glass Co. of Japan said it has slashed its consolidated net profit estimate for the year to March 1999 to 12 billion yen from 26 billion yen. The downward revision was blamed on a prolonged slump in Japan“s glass demand, lower market prices and steeper-than-expected falls in exports due to Asia“s economic turmoil. Group recurring profit is now projected at 43 billion yen, down from the earlier projection of 58 billion yen announced in May 1998. Consolidated revenue is expected to total 1.3 trillion yen, down from 1.36 trillion yen. In the previous term to last March, Asahi Glass earned a consolidated recurring profit of 56,782 million yen, on revenue of 1,346,727 million yen. Net profit came to 20,361 million yen. Asahi Glass also lowered parent-only earnings estimates for the April-September fiscal first half and the full year to next March. First-half recurring profit is now estimated at 10 billion yen, down from 12 billion yen, on sales of 360 billion yen, down from 400 billion yen. After-tax profit is seen totalling 5 billion yen, down from 7 billion yen. In the same six months of last year, the company scored a recurring profit of 15,062 million yen and an after-tax profit of 10,026 million yen, on sales of 432,758 million yen. For the full year, Asahi said it expects a recurring profit of 17 billion yen, down from the previously projected 28 billion yen, on sales of 740 billion yen, down from 830 billion yen. After-tax profit is projected at 10 billion yen, against 17 billion yen. In the year ended in March 1998, the firm had a recurring profit of 31,426 million yen and an after-tax profit of 20,072 million yen, on sales of 854,500 million yen. It now expects to incur an operating loss of 3 billion yen for April-September, a turnaround from the previously estimated 6 billion yen in profit, the first such loss since its stock market debut in 1950, company officials said. Sales volumes and prices dropped sharply particularly for glass shipped to building materials makers, automakers and electric machinery manufacturers, the officials said. However, on a recurring basis, the company said it will secure a profit, thanks to dividend income from a US subsidiary with good business performance. The Tokyo-based glass maker will integrate its production bases and rationalize its distribution system to cut its fixed expenses by 30 billion yen, or 15% of the total, by the end of March 2000. It will also slash about 900 jobs.