NSG Group reported a 7% year-on-year increase in consolidated revenue growth during the second quarter (Q2) of the fiscal year (FY) 2024/3 (from April 1, 2023, to Sept. 30, 2023). Officials state NSG’s three-month Q2 revenue rose to $1.4 billion* with improvements mostly in the automotive and architectural glass sectors.
NSG’s financial data also shows operating profit increased by $34 million* from FY2023/3 to $75 million* in FY2024/3. Officials say the increase resulted from “sales prices improvement and lower energy prices compared to the previous year despite sales volume decrease and the impact of material and other costs rising, such as labor reflecting worldwide inflation trend.”
The Group’s architectural glass segment’s revenue rose by 10.8% from $1.20 billion* in FY2023/3 to $1.27 billion* in FY2024/3. Its operating revenue increased 6.3% from $102 million* in FY2023/3 to $143 million* in FY2024/3.
Regionally, the biggest revenue jump for the architectural glass sector occurred in the Americas, with a 10.3% year-to-year increase. The Group’s financial report indicates prices in the Americas improved despite sales softening in Q2, which reflected deteriorating market conditions in North America.
However, demand continued to grow in South America, with an overall surge in solar energy glass. Cumulative revenue and Q2 architectural glass revenue did decrease in Europe due to slowing sales resulting from economic slowdowns. Energy prices did mitigate the impact of materials and other cost increases.
“Although solid demand is expected in both new construction and renovation markets in the medium to long term, demand softened as the economic slowdown continued reflecting persistent high inflation and interest rate increases,” note officials regarding the European architectural glass sector.
Architectural Glass Information
FY2023/3 Q2 Cumulative
Europe – Revenue: $519.6 million*
Asia – Revenue: $323.1 million*
Americas – $358.1 million*
FY2024/3 Q2 Cumulative
Europe: $484.7 million*
Asia: $361.4 million*
Americas: $425.3 million*
Looking ahead, officials forecast an overall favorable demand and supply situation with potential recession concerns limited to Europe and the U.S. They add that prices should remain at good levels in North America, but macroeconomic conditions are expected to impact volumes.
*Converted from JPY to USD on Nov. 13, 2023.