Japan's Asahi Glass Co. posted group profits down 23% for the business year ended 31/12/05, citing a decline in demand for CRT glass & higher raw materials prices. The company said 15 Feb that its group net profit fell to JPY 60.01BN from JPY 78.29BN a year earlier. Its group sales rose 3.5% to JPY 1.527 trillion from JPY 1.476 trillion. However, Japan's largest glass maker is betting it can improve its profitability under its mid-term plan, by increasing LCD glass production capacity by nearly 70% & cutting costs. The move is aimed at fulfilling strong demand for glass substrates from client electronics makers who are building new facilities to make more & larger LCD TVs. Asahi said it is aiming for group operating profit of JPY 180BN for the 07 calendar year, up 52%. It is also aiming for group sales of JPY 1.7 trillion in 2007, up 11% from 2005. Asahi Glass said demand for glass substrates is expected to rise at an annual rate of 20% - 30% in 2006 and 2007, with potential for even further growth. This growth would be supported by strong demand from such clients as Sharp Corp. the world's largest LCD TV maker.
