AGC FY2011 Net Income Down 22.6 Percent

Asahi Glass Co. (AGC) of Japan released its financial results for FY2011, January 1 through December 31, 2011, according to a February 8 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.

In the automotive glass business, shipments in Russia and China expanded. However, the company's shipments were affected significantly by the earthquakes and tsunami in Japan and the Thai floods, and consequently decreased from the previous fiscal year.

Shipments of glass for solar power systems increased from the previous fiscal year in line with market growth.

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.

Officials at AGC also announced the major business activities in 2011, and highlighted the progress of the mid-term management plan, the current business conditions surrounding the AGC group and the group's policy for addressing changing environment.

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.