Nippon Sheet Glass saw quarterly sales fall 3% and said market conditions were significantly worse than previously anticipated.
In a trading update NSG said “The market conditions faced by the group during the first quarter of the year were significantly worse than previously expected, particularly in Europe, which accounts for approximately 40% of the group’s revenues.
“Economic uncertainty has led to a decline in volumes of many of the group’s core products.”
It said consumers, faced with a deteriorating economic outlook, had sought to postpone spending decisions and added that it does not expect to experience much of an improvement in market conditions for the rest of the financial year.
It does expect operating results to improve as savings from its restructuring programme come into fruition.
The news comes after its July 6 announcement that it would idle one of two lines at the Group's plant in Laurinburg, NC, USA and put its float furnace at Port Marghera, Venice, Italy, on ‘hot-hold.’ In May, it said the company would postpone the restart of a float line in Gladbeck, Germany, as well.
NSG will lay off 3500 people worldwide by March 2014, 1350 had already left the company as of June 30, 2012.
The company added: “Members of the group's senior management have decided voluntarily to reduce their compensation, reflecting their clear commitment to an early turnaround of the group's performance.”
Chairman Katsuji Fujimoto will see his pay reduced by 30%, while Vice-Chairman Tomoaki Abe will see his reduced by 20%.
Meanwhile, President and Chief Executive Keiji Yoshikawa will see his total pay fall by 50%, as his base pay will fall by 30% and no bonuses will be given.
