First quarter revenues rose and pre-tax losses declined at Nippon Sheet Glass (NSG) in the 3m to 30 June. The Japanese group owns Pilkington, which it purchased in 2006, making it one of the four biggest glass companies in the world. On current exchange rates, the group saw revenues rise from £800M at the same time last year to £840M, while pre-tax losses narrowed from £20m to £10m. The group said its trading profit of around £300M, before exceptional costs, finance expenses and joint venture charges, was around 2% better than the previous year, while the cost base continued to improve, aided by a year-on-year reduction in exceptional costs. NSG's main markets are automotive glass, which makes up 51% of group revenues, architectural glass (40%) and technical glass (9%), such as smart phone screens. The report said NSG's first quarter market conditions were mixed, with further improvements in some areas offset by challenging conditions in others. EU architectural markets continue to experience low levels of demand, though activity in auto markets benefited from a gradual recovery in vehicle sales. The group believe there is a gradually improving outlook for Europe. In Japan, architectural markets are improved slightly from the previous year, while automotive markets were negatively affected by revised eco-car tax exemption rules. Meanwhile, North American markets showed further growth, particularly in the architectural sector. Auto markets in South America continued to suffer from a difficult economic environment. Overall, technical glass markets were mixed, with improvements in some areas and reductions in others. Looking forward, the group said it expects a gradual improvement in market conditions during the remainder of financial year 2016.
