530 likes | 696 Views
Business Review. Current Performance. Sales slightly below budget - down Eur 1.3m but 5.6% (Eur 10.5m) below last year Selling price improvements of 1% Profit Eur 0.5m ahead of budget and 3.6% up on last year Overheads down Eur 4.9m on same period last year
E N D
Current Performance • Sales slightly below budget - down Eur 1.3m but 5.6% (Eur 10.5m) below last year • Selling price improvements of 1% • Profit Eur 0.5m ahead of budget and 3.6% up on last year • Overheads down Eur 4.9m on same period last year • Manufacturing savings of Eur 4.2m achieved • Headcount fallen 502 since last June -8.8%
Total PPM on O.E.-1 Customer June : 234 PPM Cum : 297 PPM
Cumulative Operating Cash Flow Forecast
Variances From Budget • Forecast capital spending higher by Eur 6.9m reflecting approved projects that were budgeted centrally by the Business Line • Cash flow over budget by the higher capital spend • All other items remain ON BUDGET
RISKS AND OPPORTUNITIES Some Yes Yes No Not Yet Some Yes Some No No No Not Yet No No Not Yet
Laminated Sidelight Development • Development effort has addressed the need for non cylindrical sidelights, not feasible on the Witten gas hearth, and the newly confirmed requirement for a 1.6/0.76/1.6 construction • Simplex mode operation of the APBT furnace has been shown to give the best combination of shape control, temper stress and optics for 1.6mm semi-tempered doorlights, compared to full APB and CPB processes • Future capacity/investment planning is now being finalised based on: • Witten gas hearth for cylindrical • Simplex glasses from various existing APB’s for non cylindrical • dedicated, single chamber, vacuum bag pre-laminating units to enable cut back of IR reflective film required for corrosion resistance without edge bubble
Solar Reflective Glazing: Processable IR Reflective Coating Evaluation • Cutting and bending trials undertaken with PPG, Cardinal and our own (based on toughenable low e) coatings on rectangular blanks • PPG and Cardinal shows discoloration due sodium bicarbonate separating power used during bending. Use of Celite (silica) powder appears to overcome this. • Pilkington coatings suffer pinholing unless zinc/tin oxide is used in the coating stack (patent issues) • Trial now planned prior to August factory closure using silica powder on Selas 4, processing both PPG and Cardinal blanks • Study of PPG’s zinc/tin oxide patents being undertaken together with N.A. patent attorneys to try to identify any weakness, and to clarify Cardinal’s freedom to supply their proposed stack, which also contains zinc/tin oxide • Latest communication from Cardinal is less clear that they wish to supply commercially • rising US demand for LowE2 • concern about meeting pin hole specification after shipment over long distance
Heated Coated Status • Preliminary bending tests of surface 2 printed T3000 windscreens, pre-fired on a toughening roller hearth, were successfully carried out on San Salvo Selas 4. • Tooling has been constructed to apply coating in line with the busbar on T3000 and first evaluation samples coated on G87, with printed busbar and obscuration band • Samples currently being laminated ready for heating tests • Further tooling being constructed for X74 and DC S Class windshields, to enable customer prototypes to be made • Modelling has shown that splitting the coating can overcome heating non-uniformity problems due to telepass windows, etc. • Laser techniques are being explored to provide the split. Lines down to 1 - 30 micron are possible (less than the eye can resolve). • Working initial prototype with surface 2 print and manual line deletion will be evaluated over the next three months • Much work remains to be done to check long term coating stability, based on Electriclear experience
Manufacturing Standardisation Goal • To identify and implement best known manufacturing processes and practice across all European sites in order to • Optimise our manufacturing performance • Present a Pilkington Standard to our customers
Manufacturing Standardisation Benefits of Standardisation • Improved yield • Improved uptime • Improved quality (ppm) • A Pilkington Standard • A common vision • European support • €€€€€€€
Manufacturing Standardisation Potential savings Eur 80M • by improving all plants to current best performance • does not include developments
Standard Manning Manning Saving D Start point July 2001 Target (Start p. - Target) WS 795 715 656 139 BL 457 420 370 87 SL 523 517 468 55 Total 1775 1652 1494 281
Control Issues/Audit Reports • Operational audit of PAESA completed - Result: Adequate but some action required • Operational audit of San Salvo to come later in the year