Pilkington profits rise

May 30, 2001
Web posted at: 1038 GMT

LONDON (CNN) -- UK glassmaker Pilkington reported a 23 percent rise in full-year profits on Wednesday, but saw its shares slide on fears over its prospects.

Pilkington was down 6 percent at 114.5 pence by mid-morning in London. It warned rising energy prices would add a further £30 million to its cost base in the current financial year.

There would be a weakening of the markets for glass, it said, because of a downturn in U.S. automotive production in recent months and reduced activity in the building industry. European markets were also showing signs of softening.

"Their statement over trading in Europe is slightly weaker than one might have expected, and is putting pressure on the share price," Merrill Lynch analyst Kevin Cammack told Reuters.

He is keeping his "accumulate" rating for the stock, but house broker, Credit Suisse First Boston, reduced its recommendation from "buy" to "hold". CSFB cut its estimates for next year's pretax profits by 9 percent to £235 million.

Pilkington reported pretax profits before exceptional items of £216 million  for the year ending March 31, with earnings per share up 19 percent to 10.8 pence. Turnover was £2.8 billion.

Chairman Nigel Rudd said Pilkington was the technological leader in the global glass industry and its launch in February of the first self-cleaning glass, Pilkington Activ,  would be "a significant contributor in years to come."

Chief Executive Paolo Scaroni told reporters the company was prepared to restart talks with the U.S. glassmaker Visteon (VC: Research, Estimates) about a possible takeover. They broke down last November after its target became embroiled in a union dispute.

Pilkington upbeat on trade – Mar. 20, 2001

Pilkington

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