Pilkington warns slowdown will hit second half
The glass maker Pilkington yesterday warned that trading in the second half would be hit by the economic slowdown and mothballed plans to open a new £75m plant in Poland.
The company went on to suggest that next year may not see any improvement. "The world economic outlook is more uncertain than for many years; accordingly the management is taking a very cautious view of 2002-03," it said.
The news cast a shadow over the first-half results for 2001 announced yesterday, which were what it called the best interim figures for a decade. Pilkington has gone through a major restructuring programme since 1997, which has seen it lay off large numbers of staff and improve efficiencies. The group said it was now well-positioned to ride out the downturn.
Pre-tax profit was up 14 per cent, before goodwill and exceptionals, to £120m. The group has reduced production at some of its plants and it said that demand from car manufacturers was down.
The broker CSFB said: "Even though we expect the coming year to be difficult, Pilkington should see some, albeit modest, growth."
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