Volume 41, Issue 12 - December 2006

Financial Flash

Kyro Sees Decreased Operating Profit in First Nine Months of 2006
The Kyro Group, parent company of Glaston Technologies (Tamglass/Z. Bavelloni), has released financial information for the first nine months of 2006. The Kyro Groupís net sales in January-September were EUR 187.2 (USD $247.2) million. Its comparable operating profit was EUR 13.8 (USD $18.2) million, representing 7.4 percent of net sales. Profit before taxes was EUR 12.2 (USD $16.1) million, while profit for the financial period was EUR 9.9 (USD $13.1) million. Earnings per share were EUR 0.13 (USD $0.13) and equity per share was EUR 1.69 (USD $2.23).

According to information from Kyro, its subsidiary Glaston Technologies, which includes Tamglass and Bavelloni, had net sales totaling EUR 161.5 (USD $213.1) million in the January-September period. Comparable operating profit was EUR 11.2 (USD $14.7) million, representing 6.9 percent of net sales.

In August, Glaston had new orders totaling EUR 25.7 (USD $32.2) million, the second-largest monthly sales volume in its history. According to information from the company, demand was high for safety glass machinery, new products such as the Tamglass Sonic and other machines designed for complex glass fabrication. 

Kyro Group noted that it has efficiency programs under way by which it aims to improve profit by an estimated EUR 6 million (USD $7.6) per year starting from the beginning of 2007. For Bavelloni, this included the closure of its Bergamo assembly plant and the centralization of European warehousing operations in Italy, as well as other operational and process changes affecting personnel. Measures taken in the Glass Processing Group include the restructuring of Tamglass Finton, the merger of three Glass Processing Group companies into one company and the personnel reductions that followed from these.

PPG Reports Third Quarter Sales Up, Income Down
Pittsburgh-based PPG Industries has reported sales for the third quarter of $2.8 billion, surpassing third quarter 2005 sales by 10 percent. However, third quarter 2006 net income was $90 million, or 54 cents a share, compared to third quarter 2005 net income of $157 million, or 92 cents a share.

The 2006 net income includes aftertax charges of $106 million for previously announced estimated environmental remediation costs at sites in New Jersey and Louisiana (see November 2006 USGlass, page 18); $21 million for legal settlements, including the previously announced settlement charge for a federal class-action lawsuit related to alleged antitrust violations in the U.S. 
automotive refinishing industry; and $4 million to reflect the net increase in the current value of the companyís obligation under its asbestos settlement agreement first reported in May 2002. Net income also includes aftertax earnings of $7 million for an insurance recovery.

The third quarter 2005 net income of $157 million included aftertax charges of $37 million for legal settlements; $11 million for direct costs related to the impact of hurricanes Katrina and Rita; and $3 million to reflect the net increase in the current value of the companyís obligation under its asbestos settlement agreement. Net income also included aftertax earnings of $12 million 
for insurance recoveries. Sales for third quarter 2005 were $2.55 billion. 


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