Asahi cuts profit forecast by 46.1 percent

Officials from Asahi Glass Co., of Japan, cut the company’s 2006 profit forecast by almost half due to rising costs and falling demand, according to a Dec. 21 company release. They revised their previous net income outlook of $643 million to $347 million, a 46.1 percent decrease.

The company is expected to record losses of about $633 million in the fourth quarter alone, according to the release.

The news comes on the heels of an announcement from AFG Industries Inc. officials that the Kingsport, Tenn.-based glassmaker would cease production at its Cinnaminson, N.J., float glass facility. AFG is Asahi’s North American subsidiary.

“In North America, profitability of the flat-glass business declined, hurt by price surge of raw materials and fuels, in addition to fierce competition in the flat-glass market for construction,” officials said in the release. “The company will recognize impairment losses—about [$338 million]—on the goodwill of AFG Industries Inc.”

To read a Bloomberg report about the revised profit forecast, click here.