January 18, 2021

Central Glass Co., Ltd.

Notice of Recording of Extraordinary Loss

Central Glass Co., Ltd. (hereinafter, the "Company") hereby announces that it is expected to post an extraordinary loss as follows:

1. Details of the extraordinary loss

During an investigation of the consolidation of manufacturing facilities to improve the profitability of our automotive glass business in the United States, the Company has concluded the termination of part of the operations to manufacture processed glass for automobiles at our consolidated subsidiary Carlex Glass America, LLC* 1 and disposed of the relevant equipment.

As a result, an extraordinary loss of 23.6 million USD (approximately 2.52 billion JPY*2) shall be recorded in the fourth quarter consolidated accounting period (January 1, 2021 to March 31, 2021) for the fiscal year ending March 2021.

In addition to the above extraordinary loss, it is expected the cost of sales will be recorded at 6.9 million USD (approximately 740 million JPY*2) because stock related to the disposal of the above manufacturing equipment is no longer required.

*1 Overview of the consolidated subsidiary

(1)

Corporate name

Carlex Glass America, LLC

(2)

Location

7200 Centennial Blvd., Nashville, TN 37209 U.S.A.

(3)

Name and position of representative

Tetsuo Kanai, CEO

(4)

Business activities

Manufacturing of float glass

Manufacturing and sale of automotive glass

(5)

Capital

36.5 million USD

*2 The above-mentioned amount in JPY was converted using the average exchange rate during the period from January 1, 2020 to December 31, 2020 (1 USD = 106.77 JPY).

2. Outlook

The extraordinary loss has not been reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2021 published on July 31, 2020. The Company will make an announcement once the full- year consolidated earnings forecast, including the extraordinary loss and other factors, for the fiscal year ending March 2021 have been determined.

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Central Glass Co. Ltd. published this content on 18 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2021 07:03:02 UTC