Pilkington’s strong results for the year ended 31st March 2005 included an increase in dividend. The glassmaker opted to pay 3.35p (2004 – 3.25p), increasing to 5.1p for the full year, the first increase in the dividend for a decade. The dividend is covered over two and a half times by free cash flow.

Although turnover from continuing operations, including joint ventures and associates, decreased two per cent to £2.7 billion, at constant exchange rates this was equivalent to an increase of two per cent.

Operating profit including joint ventures and associates was up from £213 million to £231 million.

The report also noted that Energy surcharges on Building Products’ deliveries in Europe and North America have helped to alleviate the significant cost pressure from rising energy prices. Building Products’ results in Europe were affected by low industry capacity utilisation, but outside Europe Building Products results continued to improve.

Other highlights included a record 70 new model launches in Pilkington Automotive.

On 24 February 2005 the European Commission announced an investigation into the flat and car glass sectors of the European glass manufacturing industry in connection with alleged infringements of Article 81 of the Treaty of Rome, the maximum penalty for which, if established, can be a fine of up to ten per cent of worldwide turnover. In the course of that investigation the Commission has carried out inspections at the premises of several glass manufacturers, including Pilkington. The investigation is at a very preliminary stage and the outcome cannot yet be assessed.

Source

Glass Age