Asahi Glass Company (AGC) has announced its consolidated financial results for the second quarter of fiscal year 2011 (from 1st April to 30th June 2011).

In Japan, the business environment remains difficult due to the impacts of the earthquake and tsunami damage, which struck the country in March 2011. The economy, however, shows signs of picking up along with a recovery in production activities, which was driven by the restoration of supply chains.

Under these conditions, AGC posted net sales of 305.1 billion yen for the second quarter of fiscal 2011, which is a 21.6 billion yen or 6.6% decrease from the corresponding period of the previous year. Operating income decreased by 15.8 billion yen or 26% year-on-year to 45.1 billion yen and ordinary income decreased by 11.4 billion yen or 20.3% to 45 billion yen. Net income was 18.5 billion yen, a 16.1 billion yen or 46.5% decrease on a year-on-year basis.

In an overview of the architectural glass business, shipments increased from the previous quarter as demand for architectural glass continued to stay on a gradual recovery trend in Europe and Asia and also as the European building market had entered a high-demand season.

In Japan, shipment growth was dampened as the earthquake had affected production activities until the middle of the second quarter, although demand for eco glass was rising steadily.

In the automotive glass business, demand was on a recovery track, but automobile production had a drastic reduction in Japan due to the earthquake disaster and that resulted in a decline in the shipments from the previous quarter. Shipments of glass for solar power systems increased from the previous quarter thanks to the strong performance in all regions. As a result, net sales and operating income from the glass operations for the second quarter under review were 135.6 billion yen and 300 million yen respectively.