Ceramic Industry

AGC Six Month Net Sales Slide 5%; Glass Operations See Slight Increase

August 14, 2012

Asahi Glass Co. Ltd. (AGC) recently posted first half net sales of ¥583.3 billion (~ $7 billion), a ¥30.4 billion (~ $387 million) or 5% decrease from the corresponding period last year. Operating income was ¥48 billion (~ $612 million), a decrease of 51.7%; ordinary income decreased by 53.8% to ¥47.6 billion (~ $606 million). Net income was ¥31.1 billion (~ $396 million), a 45.5% decrease on a year-on-year basis.

In the flat glass business, shipments of architectural glass in Japan increased from the same period of the previous fiscal year, which was affected by the east Japan earthquake. Shipments in Asia also remained strong. Meanwhile, shipments in Europe and North America declined from the same period of the previous fiscal year due to the effects of deteriorating economic conditions in Europe, particularly Western Europe, and continued sluggish demand in North America.

Shipments of glass for solar power systems decreased from the same period of the previous fiscal year due to factors such as slowing market growth and intensified competitive environment. As a result, sales from the flat glass business, which consists of architectural glass and glass for solar power systems, declined from the same period of the previous fiscal year.

In the automotive glass business, the AGC Group’s shipments in Europe were on the same level as the previous year, despite a year-to-year decrease in auto production in the region due to the effects of deteriorating economic conditions. Shipments in Japan increased from the same period of the previous fiscal year, which was affected by the earthquake. Shipments in Asia and North America also increased, backed by strong auto production in each region, leading to an increase in sales from the same period of the previous fiscal year.

As a result, net sales from the Glass Operations for the six months ended June 30, 2012, were ¥278.2 billion (~ $3.5 billion), up ¥5.5 billion (~ $70 million) or 2% increase from the same period of the previous fiscal year. Shipments of glass substrates for display devices increased from the same period of the previous fiscal year, along with a continuing recovery trend from the fourth quarter of 2011. The decline in the product prices in this category slowed in the second quarter; however, sales fell compared to the same period of the previous fiscal year due to large price declines in the first quarter. As a result, net sales from the Electronics Operations for the six months ended June 30, 2012, were ¥161.1 billion (~ $2 billion), down ¥49.5 billion (~ $631 million) or 23.5% decrease from the same period of the previous fiscal year.

For additional information, visit www.agc.com.