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Glaverbel reports sharply higher earnings

Belgian glassmaker Glaverbel reported net consolidated income in fiscal 2000 of EUR 109.1 million, compared with EUR 33.1 million in 1999. Consolidated sales increased by 12% to EUR 1.699 billion, wit…

Belgian glassmaker Glaverbel reported net consolidated income in fiscal 2000 of EUR 109.1 million, compared with EUR 33.1 million in 1999. Consolidated sales increased by 12% to EUR 1.699 billion, with the Building Division contributing 55%, Automotive Division 26% and Industries Division 17%. Consolidated operating income (EBIT) rose 74% to EUR 185.4 million. In the Building Division, the large increase was due partly to the growth in volumes following the start-up in March of the float plant in Sagunto, Spain and partly to the very significant rise in prices throughout the year. Sustained by the present balance between production capacities on the one hand and market consumption on the other, the average price for float glass in 2000 was 22% higher than in 1999. This price rally more than made up for the rise in energy costs. Moreover, it gathered strength towards the end of the year, with December prices 9% higher than the average for 2000. Capital investments amounted to EUR 144 million compared with EUR 205.9 million in 1999. The Board of Directors declared a gross dividend of BEF 152 per share, up 10% on the 1999 amount. The 2000 dividend will be payable as of 5 June 2001, on presentation of coupon No. 20. Glaverbel Group and its majority shareholder, Asahi Glass, are acting to optimise the synergies between their operations as a worldwide supplier to the global automotive industry. The start-up of new production facilities scheduled to come on line during the second half of the year will help to improve the Group“s position in its various markets. These facilities include a fourth float line at Moustier, Belgium, a laminated glass line for producing large sheets at Retenice in the Czech Republic, a fire-resistant glass production unit at Olovi in the Czech Republic, extended capacity for the mirror production unit at Kryry also in the Czech Republic and a new automotive laminated glass line at Bor Glassworks in Russia. Together with the repair of the second float line at Bor, planned for 2002, this last expenditure represents an investment of around US$ 45 million. Taking all these factors into account, the group confirmed its forecasts for an excellent first half year, and with the announced recession failing to appear in the main European markets, the net result (group“s share) for the year as a whole is expected to improve by at least 20%. The group workforce (excluding Bor Glassworks) totalled 12,547 people at the end of 2000, compared with 12,841 in 1999.

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