Highlights of the First Half of Fiscal Year 2007

21 Nov 2006
Dramatic increase in Sales and Profits, due to the consolidation of Pilkington Sales and Operating Income

The Company included the performance of Pilkington, which became a consolidated subsidiary in June 2006, in the Company’s consolidated income statements from the second quarter of the current term.
Consequently, sales, operating profits, and ordinary profits all saw substantial year-on-year increases.

(1) Building Products

(Sales: JPY131.604 billion, Operating profit: JPY6.103 billion)

In Japan, solid increases in shipments of high-performance glass boosted sales, but higher costs for raw materials and fuels caused operating profits to drop year-on-year.

In Europe, profits were strong due to a firm increase in demand in the region.
In North America, amongst a decline in housing construction, robust demand for commercial building supported sales.

(2) Automotive Glass

(Sales: JPY96.872 billion, Operating profit: JPY 2.018 billion)

In Japan, glass shipment were up year-on-year fueled by increase of domestic car build.

In Europe, the new vehicles, of which Pilkington supplies glass products, showed good growth.

In North America, OE business was slow due the reduced production by US automobile manufacturers.

(3) Other Businesses

(Sales: JPY 44.782 billion, Operating profit: JPY 0.559 billion)

In the information and electronics sector, steady shipments of optical lenses for multifunction printers and a recovery in the display product market lifted sales and profits year-on-year.

In the glass fibre sector, recovering demand for air filter-related equipment was among factors generating a year-on-year rise in sales and profit.

Convertible bonds and borrowings

As for the convertible bond-type bonds with stock acquisition rights (No.1), JPY 61 billion has been converted into stocks out of the issued JPY 110 billion as at the end of September 2006 and JPY 71 billion as of today (approximately 65 percent of the total).

Interest-bearing debt balance at the end of this interim period is JPY 636 billion, which is a JPY 32.6 billion decrease from the end of the first quarter.

Outlook for FY 07

At present, no revision on the FY07 outlook, which was published on 6th July 2006, has been made.

New Medium-term plan (To be published at 16:00 (JST) of today)

Dividing the ten-year strategy from FY2008 to FY2017 into three stages, the Company has set out a four-year medium-term plan starting from April 2007 as its first stage. This plan aims to integrate the Group’s strength and expand its performance by continuing efforts to restore financial soundness, placing emphasis on improving productivity and quality, and endeavoring to distinguish itself from its competitors.

Click here to download or view on screen Interim Financial Statements for Half Year to September 2006