ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Articles

Nippon Electric Glass aims for 10% profit margin by 2018

OSAKA -- Nippon Electric Glass seeks to boost its operating profit margin to 10% by the year ending December 2018, up from about 3% last year, President Motoharu Matsumoto told The Nikkei.

Motoharu Matsumoto

     The Japanese manufacturer aims to achieve the target by expanding sales of glass fibers used in autoparts.

     The company's glass fiber business boasts a 30% global market share and a 2014 operating margin of over 10%. Nippon Electric sees division sales hitting 60 billion yen ($492 million) this year, but Matsumoto vowed to "grow that figure to 100 billion yen in short order." The company is looking into boosting production capacity at its Malaysia factory and adding new facilities in the U.S. and Europe.

     Sales of glass for liquid crystal display panels -- the company's core business -- are expected to stay at roughly 150 billion yen. About 40% of the division's glass will be produced overseas after production begins at the end of this year at a new factory in the southeastern Chinese city of Xiamen, Fujian Province.

     "We may even take our overseas production up another notch" to lower fixed costs, Matsumoto said.

     Nippon Electric also will boost research and development. R&D expenses equaled 2.9% of sales last year, and Matsumoto intends to "bring that figure up to 5% as we expand development on our glass fiber products."

     The company's operating profit margin has soared before, reaching 30% amid a booming market for LCD televisions. But that market has waned, and Nippon Electric expects margins of around 5% for 2015.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more