Asahi Glass Co. said 6 Feb/09 its consolidated operating profit for the year to Dec/08 is expected to fall 80.5% from the previous year to JPY 30BN, due to anticipated weak demand for many products. The company now forecasts a net loss of JPY 42BN, against the previous year's profit of JPY 39,178M. Sales are projected to fall 23.8% to JPY 1.1TR. Shipments of flat glass, automotive glasses & chemical products are likely to weaken. But as shipments of glass for solar panels are expected to increase, Asahi Glass can secure operating profit, it said. The company expects a special loss of JPY 60BN from restructuring its production systems. Capital expenditures will fall to JPY 143BN (JPY 252.1BN), while research & development outlays are set to increase to JPY 42BN. Asahi has slashed its global output of glass sheets & automotive glass by 20% & 50%, respectively, officials said, adding that other sectors are also reducing their production volumes. To take responsibility for the poor earnings, the company's executives will give up about 10% of their monthly pay for six months from January 2009, the firm also said. For the previous year, Asahi Glass said its net profit fell 43.7%. Operating profit fell 22.0% to JPY 154,013 million, on sales of JPY 1,444,317 million, down 14.1%.
