AGC FY2011 Net Income Down 22.6 PercentFebruary 9th, 2012 by DWM Magazine
Asahi Glass Co. (AGC) of Japan released its financial results for FY2011, January 1 through December 31, 2011, according to a company news release. The group posted net sales of $15.8 billion USD (1,214.7 billion yen), a 5.8-percent decrease from the previous year. Operating income decreased by 27.7 percent year-on-year, and net income was down 22.6 percent on a year-on-year basis.
In the architectural glass business, shipments in Japan for the full year increased from the previous fiscal year due to strong demand, despite slumping temporarily in the first half of the fiscal year following the East Japan earthquake. Shipments in Asia for the full year also increased from the previous fiscal year, supported by generally favorable demand, despite a decline in the fourth quarter caused by the effects of floods in Thailand. On the other hand, shipments in Europe underperformed in the latter half of the year, namely in Western Europe, due to the effects of deteriorating economic conditions, although demand had been recovering moderately until the middle of the year. Shipments in North America remained sluggish.
As a result, net sales from glass operations for the fiscal year was down 0.8 percent from the year before, and operating income was down 46.1 percent from the previous fiscal year, according to the release.
In addition, the company formulated the midterm management plan “Grow Beyond-2012” in February 2010 for the realization of the group’s long-term growth picture “AGC’s Aspirations for 2020,” and has been working to build foundations for growth.
According to the plan, the AGC Group will put its innovative glass production technologies, which are currently under development, into practical use at an early date in order to achieve an improvement in energy efficiency. Also, the company will optimize the operation and geographical arrangement of its production facilities to meet demand trends in each region. In addition, AGC will increase the proportion of high value-added products among eco-glass and other existing products by installing coating facilities at the Kashima plant and through the strategic business alliance with Interpane, which has advanced coating technologies.