Nippon Sheet Glass Co., the world's biggest maker of car windows, forecast its first profit decline in five years on energy costs and falling prices in Europe, its largest market following its 2006 acquisition of Pilkington PLC.

Net income may fall 60 percent to ¥20 billion for the year that started April 1 from ¥50.4 billion a year earlier, the Tokyo-based company said Friday. Sales may rise 1.7 percent to ¥880 billion.

Incoming President Stuart Chambers, former head of Pilkington, will have to combat lower prices in Europe and higher costs for oil and natural gas this year.

"I expect more cost-reduction measures to be taken under the new top management," said Katsuhiko Ishibashi, an analyst at Deutsche Securities Inc. in Tokyo.

Nippon Sheet's stock lost 16 percent this year, compared with an 8 percent drop in the benchmark Nikkei 225 stock average.

The company's fourth-quarter net loss narrowed to ¥10.4 billion from a ¥16.1 billion loss a year earlier, while sales gained 11 percent to ¥216.9 billion. Operating profit, or sales minus the cost of goods sold and administrative expenses, rose more than fivefold to ¥5.6 billion, helped by higher revenue from Europe and gains from the sale of an Australian unit.

The quarterly figures were derived from annual results reported Friday.

Full-year profit rose fourfold to ¥50.4 billion, or ¥75.44 a share, from ¥12.1 billion, or ¥21.85, a share a year earlier, the Tokyo-based company said Friday. Sales rose 27 percent to ¥865.6 billion, and operating profit almost doubled to ¥46.5 billion.

Europe became Nippon Sheet's largest market after the company's 2006 acquisition of U.K.-based Pilkington. Nippon Sheet in June sold its Pilkington units to CSR Ltd., Australia's third-largest building products maker, for $660 million.