Nippon Electric Glass (NEG) has said that the current profit for the six months ending in September will be far below the planned Y5.5bn. In fact, it can only reach Y3bn, down 56% from the first half last year. Sales will be a little above plan, at just 1%, but the costs of repairs to ageing furnaces are up, and this will cut operating pforit by as much as 41% to Y4bn. As the Yen stays higher than the company's estimate for the period, which was 120 yen to the dollar, NEG may also lose as much as Y1bn in exchange losses. The company has set Y115 as the rate for the second half ending March 1998, and deterioration in exports should cause current profit to drop 24% from last year to Y10bn, below the planned Y13.5bn. Sales should be up 1% with operating profit down 15% to Y8.5bn. (whole item)
