Pilks Gloom

European float glass prices were blamed by Pilkington for what are likely to be disappointing full year profit figures. The Group had attempted to increase prices by 5% last October but had been foiled by poor European float glass prices resulting in only Dm4,50sq m since the New-Year. The failure to sustain the price has been estimated to have caused a loss in profits to Pilkington of £30m. Sterling's relative strength and unexpected demand for new models from motor producers leading to more tooling, have cost the Group another £15m. The restructuring programme in Germany is now likely to lead to accelerated closures and job losses in downstream double glazing and glass processing plants. (whole article)