NSG reports FY2013 first-quarter market conditions 'significantly worse' than expected
Nippon Sheet Glass Co., parent company of NSG-Pilkington North America, said market conditions in the first quarter of fiscal year 2013 were significantly worse than previously expected, leading to lower revenue and sales levels compared to the prior-year period.
In an August 2 release, NSG reported revenue for its architectural glass products was down 18 percent in the first quarter of FY2013, compared to last year. Overall company revenue was down 10 percent. Officials attributed the losses to, among other things, "significant deterioration in the Group’s core markets, particularly in Europe; architectural and automotive volumes below expectations; and joint ventures and associates experiencing challenging architectural markets." NSG does not expect significant improvement in market conditions during the rest of FY2013.
As part of its restructuring efforts, the company will focus on "capacity reduction, overhead reductions and operational improvements," according to the release.
The news comes after its July 6 announcement that it would idle one of two lines at the Group's plant in Laurinburg, N.C., and put its float furnace at Port Marghera, Venice, Italy, on "hot-hold." In May, NSG officials said the company would postpone the restart of a float line in Gladbeck, Germany, as well.
NSG will lay off 3,500 people worldwide by the end of FY2014; 1,350 had already left the company as of June 30, 2012, according to the release. As many as 75 people will be laid off at the NSG Group float glass plant in Laurinburg, N.C.