At its annual meeting today, Pilkington Chairman Sir Nigel Rudd said the company's automotive glass replacement demand in North America remains stable.

In Europe, he said, demand has increased.

"Efficiency and productivity levels in both the original equipment and AGR operations continue to improve across the world, and results generally are ahead of last year," he said.

Reporting on the company's float operations around the globe, Rudd said, "A sound base has been established in China as a platform for future growth, with the three automotive plants now fully integrated into the global Pilkington automotive business. The Pilkington-constructed fourth float line in Brazil for our South American joint venture is now in full production, following an excellent start-up. The joint venture float line in Russia is on target to start production later this year."

Rudd added, "The year has started in line with expectations. Pilkington remains on track to begin its transition into the third phase of its strategy over the course of this financial year, and has begun to target investments into profitable growth opportunities in our core business areas."