Asahi Glass has announced that its consolidated operating profit for the year ending 31 December 2009 is now expected to show a 60% decline on the year to a little more than JPY 60 billion, more than …
Asahi Glass has announced that its consolidated operating profit for the year ending 31 December 2009 is now expected to show a 60% decline on the year to a little more than JPY 60 billion, more than the previous forecast of JPY 20 billion. The company“s electronics and display operations are expected to secure about JPY 100 billion in operating profit due to an increase in demand for high-profit-margin LCD glass substrates, thanks to a Chinese programme that encourages consumer electronics purchases. Operating losses for Asahi“s automotive and building glass divisions are expected to decrease since capacity utilization at production facilities for automotive glass has improved to around 60% from 50% as a result of growth in demand for so-called green cars. This upgraded profit forecast means that the company should report a smaller net loss in fiscal 2009. Asahi is projecting an extraordinary charge of JPY 60 billion this fiscal year, due to structural reform expenses. On 3 August 2009, Asahi Glass projected a JPY 40 billion operating profit, equal to a net loss forecast of approximately JPY 34 billion after charges. At the moment, the company will maintain the extraordinary charge figure unchanged. If non-operating losses or profits do not show major fluctuations, Asahi Glass will post a net loss of approximately JPY 10-20 billion for the year.