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Asahi cuts profit forecast by 46.1 percent

Post Time:Nov 12,2013Classify:Industry NewsView:50

Officials from Asahi Glass Co., of Japan, cut the company’s 2006 profit forecast by almost half due to rising costs and falling demand, according to a Dec. 21 company release. They revised their previous net income outlook of $643 million to $347 million, a 46.1 percent decrease. The company is expected to record losses of about $633 million in the fourth quarter alone, according to the release. The news comes on the heels of an announcement from AFG Industries Inc. officials that the Kingsport, Tenn.-based glassmaker would cease production at its Cinnaminson, N.J., float glass facility. AFG is Asahi’s North American subsidiary. “In North America, profitability of the flat-glass business declined, hurt by price surge of raw materials and fuels, in addition to fierce competition in the flat-glass market for construction,” officials said in the release. “The company will recognize impairment losses—about [$338 million]—on the goodwill of AFG Industries Inc.” To read a Bloomberg report about the revised profit forecast, click here.Share this article:

Source: http://www.glassmagazine.com/news-item/commercial/asahi-cuts-profit-forecast-461-percentAuthor:

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