2012-08-08 12:00:00 CEST
2012-08-08 12:00:09 CEST
REGULATED INFORMATION
Glaston Oyj Abp - Interim report (Q1 and Q3)
Glaston Interim Report 1 January – 30 June 2012
Helsinki, Finland, 2012-08-08 12:00 CEST (GLOBE NEWSWIRE) -- GLASTON
CORPORATION INTERIM REPORT 8 August 2012 at 13.00
Glaston Interim Report 1 January - 30 June 2012
-Orders received in January-June totalled EUR 66.0 (75.5) million. Orders
received in the second quarter were EUR 33.2 (36.7) million.
- The order book on 30 June 2012 was EUR 35.7 (38.7) million.
-Consolidated net sales in January-June totalled EUR 69.2 (75.9) million.
Second-quarter net sales were EUR 33.7 (41.6) million.
- EBITDA was EUR 1.3 (4.3) million, i.e. 1.8 (5.6)% of net sales.
-The operating result excluding non-recurring items in January-June was a loss
of EUR 2.4 (0.3 profit) million, i.e. -3.5 (0.4)% of net sales. The
second-quarter operating result excluding non-recurring items was a loss of EUR
1.8 (1.2 profit) million.
- The operating result in January-June was a loss of EUR 5.7 (0.4 profit)
million, i.e. -8.3 (0.5)% of net sales. The second-quarter operating result was
a loss of EUR 1.8 (1.3 profit) million.
-Return on capital employed (ROCE) was -8.9 (0.4)%.
- January-June earnings per share were EUR -0.09 (-0.09).
President & CEO Arto Metsänen:
Owing to global economic uncertainty, market conditions remained challenging.
Despite the difficult operating environment, Glaston managed to maintain its
market position.
Glaston's second quarter was unsatisfactory. Economic uncertainty was reflected
in business activity. Customers' caution was evident in delayed
decision-making, with transactions being shifted to the latter part of the
year, and in the postponement of orders already agreed. In larger investments,
customers also had difficulties in financing the investments. In the second
quarter, net sales totlled EUR 33.7 million and in January-June net sales were
EUR 69.2 million. Our operating result excluding non-recurring items was a loss
of EUR 2.4 million for the first six months of the year.
Despite the weak start to the year, we continue to believe that we will achieve
our net sales and operating profit targets for the full year, due to our order
book, competitive product range and cost-efficient operations.
Glaston's outlook for 2012 unchanged
Glaston expects that 2012 net sales will be at least at the 2011 level and that
the operating result excluding non-recurring items will be positive.
Markets
In the second quarter of 2012 Glaston's market slowed. In Asia, market growth
continued to level off. The EMEA market remained challenging due to the euro
area's economic difficulties and the unstable political situation in the Middle
East. No major changes occurred in the South American market. In North America,
the glass processing machine market showed slight signs of recovery.
Machines
In the second quarter of 2012, the development of Machines segment's market in
Asia continued to level off. The cautiously positive development of the North
American market continued in the second quarter. The EMEA market was relatively
stable, but the uncertain economic outlook in Europe led to the postponement of
purchasing decisions. No major changes occurred in the South American market.
In the second quarter of the year, the first sales of the Glaston RC200™
machine were made to the USA and Mexico, and the first Glaston CHF2000™ machine
was sold to the USA. This continuously operating flat tempering machine has
been designed particularly to meet the needs of solar energy and appliance
industries. The launch of the new XtraEdge™ double edging machine continued in
the second quarter of the year on a positive note. Significant sales were made
in the Middle East, Italy and the UK. The new Hiyon™ edging machine was also
launched at the Glass South America Fair in May, and the machine was well
received by customers. After the fair, a number of sales were concluded in
South America.
In January-June, the Machines segment's net sales totalled EUR 43.6 (47.6)
million. The operating result excluding non-recurring items was a loss of EUR
2.6 (1.7 loss) million.
Services
In the second quarter, machine modernisation services developed positively in
the EMEA area, particularly in Russia and Turkey. In Central Europe, demand was
centred especially on machine relocation services. In North America, customers
were interested in upgrades that increased capacity and machine performance. In
Asia, a new furnace chamber refurbishment package was well received .In South
America, demand was focused on machine control system upgrades.
In the second quarter of the year, the revamped Glaston Care service agreement
family, which contains four levels, was launched onto the market. The product
family now covers the maintenance needs of glass processors of all sizes. The
CareEasy™ contract is an easy way to begin regular and systematic maintenance.
The Glaston Care™ level is a comprehensive, preventative maintenance programme.
The CarePlus™ maintenance contract includes, in addition to the latter,
extensive process consultation. The CareWarranty5™ servicecontract is a
five-year warranty for new tempering machines.
The published products also include the machine relocation service
GlastonMove™. Glaston is the only machine supplier to offer a complete turnkey
relocation service package, which covers documentation, start-up and training.
Customers can also select only parts of the service package.
The Services segment's January-June net sales totalled EUR 15.5 (16.9) million
and the operating result excluding non-recurring items was EUR 2.7 (3.8)
million.
Software Solutions
In the second quarter of 2012, the Software Solutions segment's market was
challenging. Economic uncertainty in Europe extended customers' investment
decision-making times and led to the postponement of orders. Price competition
also intensified.
Cost-efficiency, energy saving and carbon footprint reduction are increasingly
influencing customers' investment decisions. In the review period, demand was
directed at technical software systems, production planning systems and
optimizers. Sales of maintenance contracts again developed in line with
expectations during the second quarter. The Glass South America Fair, which was
held in Sao Paolo, Brazil in May, showed that there are significant growth
opportunities for the segment's products in the South American market.
In the second quarter, a significant project for an integrated production
planning system was agreed with the German company Glas Blessing. After a
rigorous evaluation process, the customer opted for A+W Business and A+W
Production solutions. A number of small and profitable service projects were
also implemented in the review period. Consulting organization utilisation
remained high during the second quarter.
An extensive operational development programme being implemented in the segment
advanced during the second quarter to the implementation stage, and had a
positive impact, particularly on the sales organisation and product
development. The strong investment in developing new products, such as software
tools and software architecture, continued.
The Software Solutions segment's January-June net sales totalled EUR 10.7
(12.2) million. The operating result excluding non-recurring items was EUR 1.1
(1.3) million.
Orders received
Glaston's orders received during the first six months of the year totalled EUR
66.0 (75.5) million. Of orders received, the Machines segment accounted for
60%, the Software Solutions segment 15% and the Services segment 25%.
Orders received during the second quarter of the year totalled EUR 33.2 (36.7)
million.
Order book
Glaston's order book on 30 June 2012 stood at EUR 35.7 (38.7) million. Of the
order book, the Machines segment accounted for EUR 30.8 million, the Services
segment EUR 3.3 million and the Software Solutions segment EUR 1.6 million.
Order book, EUR million 30.6.2012 30.6.2011
---------------------------------------------
Machines 30.8 35.4
---------------------------------------------
Services 3.3 1.1
---------------------------------------------
Software Solutions 1.6 2.2
---------------------------------------------
Total 35.7 38.7
---------------------------------------------
Net sales and operating result
Net sales for the review period totalled EUR 69.2 (75.9) million. The Machines
segment's net sales in the first half of the year were EUR 43.6 (47.6) million,
the Services segment's net sales EUR 15.5 (16.9) million and the Software
Solutions segment's net sales EUR 10.7 (12.2) million.
April-June net sales totalled EUR 33.7 (41.6) million. The Machines segment's
net sales in the second quarter were EUR 21.7 (27.6) million, the Services
segment's net sales were EUR 7.0 (8.5) million and the Software Solutions' net
sales were EUR 5.3 (6.2) million.
Net sales, EUR million 1-6/2012 1-6/2011 1-12/2011
-------------------------------------------------------
Machines 43.6 47.6 90.0
-------------------------------------------------------
Services 15.5 16.9 31.1
-------------------------------------------------------
Software Solutions 10.7 12.2 23.1
-------------------------------------------------------
Other and internal sales -0.5 -0.9 -1.6
-------------------------------------------------------
Total 69.2 75.9 142.7
-------------------------------------------------------
The operating result excluding non-recurring items in January-June was a loss
of EUR 2.4 (0.3 profit) million, i.e. -3.5 (0.4)% of net sales. The Machines
segment's operating result excluding non-recurring items in January-June was a
loss of EUR 2.6 (1.7 loss) million. The Services segment's operating result
excluding non-recurring items was a profit of EUR 2.7 (3.8) million, and the
Software Solutions' operating result excluding non-recurring items was a profit
of EUR 1.1 (1.3) million.
The January-June operating result was a loss of EUR 5.7 (0.4 profit) million.
Non-recurring items of EUR -3.3 million were recognised in the first quarter of
the year.
The second-quarter operating result excluding non-recurring items was a loss of
EUR 1.8 (1.2 profit) million, i.e. -5.4 (2.9)% of net sales.The Machines
segment's operating result excluding non-recurring items in April-June was a
loss of EUR 1.7 (0.2 profit) million. The Services segment's operating result
excluding non-recurring items was a profit of EUR 1.0 (2.3) million, and the
Software Solutions segments' operating result excluding non-recurring items was
a profit of EUR 0.9 (0.3) million.
The second-quarter operating result was a loss of EUR 1.8 (1.3 profit) million.
Glaston's net financial expenses were EUR -3.4 (-7.6) million. The previous
year's financial expenses were elevated by, among other things, expenses
arising from the conversion of the convertible bond. Second-quarter net
financial expenses were EUR -1.9 (-1.3) million.
The result for the review period was a loss of EUR 9.3 (8.7 loss) million and
earnings per share were EUR -0.09 (-0.09).The result for the second quarter was
a loss of EUR 4.1 (0.6 loss) million and earnings per share were EUR -0.04
(0.00).
Return on capital employed (ROCE) in January-June was -8.9 (0.4)%.
Adjustment measures
In the second quarter, production capacity in Asia was adjusted to correspond
with demand through a reduction in personnel numbers. Adjustment measures,
primarily personnel reductions, were also implemented in Brazil. In Italy,
temporary layoffs of personnel continued.
The implementation of the Software Solutions segment's operational development
programme continued in the second quarter, with the focus being on the sales
organisation and product development. The number of personnel was also reduced.
Financial position, cash flow and financing
At the end of the review period, the consolidated asset total was EUR 172.3
(194.0) million. The equity attributable to owners of the parent was EUR 43.9
(57.7) million, i.e. EUR 0.42 (0.55) per share. The equity ratio on 30 June
2012 was 27.8 (31.9)%.The equity ratio on 31 December 2011 was 31.1%.Net
gearing was 125.9 (93.4)% (on 31 December 2011: 93.5%).
Return on equity in January-June was -38.2 (-35.7)%.
Cash flow from operating activities, before the change in working capital, was
EUR 0.6 (-3.9) million in the review period.The change in working capital was
EUR -3.0 (0.6) million. Cash flow from investments was EUR -3.0 (-2.3) million.
Cash flow from financing activities in January-June was EUR -1.9 (10.6)
million.
The Group's loan agreements contain covenant terms and other commitments that
are linked to consolidated key figures. The covenants in use are interest
cover, net debt/EBITDA, cash and gross capital expenditure. During the review
period, Glaston renegotiated some of the loan covenants with lenders.
Capital expenditure, depreciation and amortisation
Glaston's gross capital expenditure totalled EUR 3.0 (2.5) million. In the
review period, there were no significant individual investments; the biggest
investments were capitalisations of product development expenditure.
In the review period, depreciation and amortisation on property, plant and
equipment, and on intangible assets totalled EUR 4.0 (3.8) million. A EUR 3.0
million goodwill impairment loss, directed at the Machines segment, was
recognised in the first quarter.
Organisation and personnel
In June, Glaston announced changes in its Executive Management Group. Roberto
Quintero was appointed Senior Vice President, Machines Business Area,
Pre-processing and Tools product lines, and he also became a member of
Glaston's Executive Management Group. Juha Liettyä, formerly Senior Vice
President, Services, was appointed Senior Vice President, Machines Business
Area, Heat Treatment product line, and Pekka Huuhka, formerly Senior Vice
President, Supply Chain was appointed Senior Vice President, Services.
The appointments were effective from 1 July 2012.
On 30 June 2012, Glaston had a total of 813 (907) employees. Of the Group's
employees, 19% worked in Finland and 41% elsewhere in the EMEA area, 25% in
Asia and 15% in the Americas. In the review period, the average number of
employees was 837 (912).
Shares and share price
Glaston Corporation's paid and registered share capital on 30 June 2012 was EUR
12.7 million and the number of issued and registered shares totalled
105,588,636.The company has one series of share. At the end of June, the
company held 788,582 of the company's own shares (treasury shares),
corresponding to 0.75% of the total number of issued and registered shares and
votes. The counter book value of treasury shares is EUR 94,819.
Every share that the company does not hold itself entitles its owner to one
vote at the Annual General Meeting. The share has no nominal value. The counter
book value of each registered share is EUR 0.12.
During the first six months of the year, a total of around 11.1 million of the
company's shares were traded, i.e. around 10.6% of the total number of shares.
The lowest price paid for a share was EUR 0.24 and the highest price EUR
0.74.The volume-weighted average price of shares traded during January-June was
EUR 0.46.The closing price on 30 June 2012 was EUR 0.27.
On 30 June 2012, the market capitalisation of the company's shares, treasury
shares excluded, was EUR 28.3 (106.9) million. The equity per share
attributable to owners of the parent was EUR 0.42 (0.55).
The 2011 Annual General Meeting authorised the Board of Directors to decide on
a share issue, including the right to issue new shares and/or convey treasury
shares. The share issue authorisation covers a maximum of 20,000,000 shares and
is valid until the end of the 2013 Annual General Meeting. The authorisation
includes the right to decide on a share issue without payment. The Board of
Directors also has the right to issue and/or convey shares in derogation of the
pre-emptive subscription right of shareholders. At the end of the review
period, the Board of Directors still had in respect of this authorisation the
authority to issue 16,907,499 shares. The Board of Directors has no other
authorisations.
Uncertainties and risks in the near future
Glaston's uncertainties and risks in the near future are to a large extent
linked to the development of the world economy. In addition, political
instability, particularly in the Middle East, will affect the development of
the EMEA area. Slower economic growth may continue to result in the
postponement of orders and changes in machine delivery schedules. Customers'
difficulties relating to finance arrangements may restrict customers'
investment opportunities. These might be reflected in the development of the
latter part of the year.
The underlying nature of the sector is expected to remain unchanged, so
development in the coming years is expected to be positive. If the recovery of
the sector is delayed or slows, this will have a negative effect on Glaston's
result. The shift of the geographical focus of business activity to areas of
higher economic growth will, however, dampen the financial impact of a possibly
slower recovery in Western Europe and North America, despite a levelling off of
the Asian and South American markets.
Due to market uncertainty, it is possible that Glaston's recoverable amounts
will be insufficient to cover the carrying amounts of assets, particularly
goodwill. If this happens, it will be necessary to recognise an impairment
loss, which, when implemented, will weaken the result and equity.
Outlook
Glaston's markets will remain challenging in the latter part of 2012.Growth in
the Asian market has clearly levelled off in the early part of the year and we
expect this trend to continue in the latter part of the year. In the South
American market, we expect cautiously positive development. The North American
market continues to show signs of recovery, and we believe this positive trend
will continue. In the EMEA area, the market will continue to be challenging.
The cornerstones of Glaston's operations remain the architectural glass segment
and the solar energy market. The architectural glass segment creates the
foundation for the company's future growth. In the longer term, prospects for
the solar energy segment are good.The automotive industry also offers good
growth opportunities.
The prevailing uncertainty in the operating environment combined with
customers' investment caution will result in more intense competition. Despite
the difficult operating conditions, we believe that the positive development in
the Services and Software Solutions segments will continue during the latter
part of the year. We will continue to invest heavily in these areas. In the
Machines segment, market uncertainty will be reflected most strongly in larger
machine orders. Due to our existing order book and to sales transferred from
the early part of the year, we continue to believe that we will achieve our
target for the full year. It is typical for the sector that deliveries are
weighted towards the final quarter of the year.
Glaston expects that 2012 net sales will be at least at the 2011 level and that
the operating result excluding non-recurring items will be positive.
Helsinki, 8 August 2012
Glaston Corporation
Board of Directors
Further information: Arto Metsänen, President & CEO, tel. +358 10 500 6100
Sender:
Agneta Selroos
Director, Communications and Marketing
Glaston Corporation
Tel.+358 10 500 6105
Glaston Corporation
Glaston Corporation is an international glass technology company and a pioneer
in glass processing technology.Its product range and service network are the
widest in the industry.Glaston's notable brands are Bavelloni in pre-processing
machines and tools, Tamglass and Uniglass in safety glass machines, and
Albat+Wirsam in glass industry software.Glaston's share (GLA1V) is listed on
the NASDAQ OMX Helsinki Small Cap List.
Distribution:NASDAQ OMX, key media, www.glaston.net
GLASTON CORPORATION
CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 30 JUNE 2012
These interim financial statements are not audited. As a result of rounding
differences, the figures presented in the tables may not add up to the total.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 30.6.2012 30.6.2011 31.12.2011
Assets
Non-current assets
Goodwill 49.6 52.6 52.6
Other intangible assets 18.1 18.5 18.2
Property, plant and equipment 17.8 18.9 18.7
Investments in joint ventures and associates 0.1 0.0 0.1
Available-for-sale assets 0.3 0.3 0.3
Loan receivables 4.5 4.5 4.4
Deferred tax assets 6.9 8.0 6.9
--------------------------------------------------------------------------------
Total non-current assets 97.3 102.8 101.2
Current assets
Inventories 27.5 26.0 25.2
Receivables
Trade and other receivables 35.7 44.9 40.8
Assets for current tax 0.7 0.7 1.3
--------------------------------------------------------------------------------
Total receivables 36.4 45.6 42.1
Cash equivalents 11.1 19.7 18.6
Total current assets 75.0 91.3 86.0
--------------------------------------------------------------------------------
Total assets 172.3 194.0 187.2
================================================================================
30.6.2012 30.6.2011 31.12.2011
Equity and liabilities
Equity
Share capital 12.7 12.7 12.7
Share premium account 25.3 25.3 25.3
Other restricted equity reserves 0.0 0.0 0.0
Reserve for invested unrestricted equity 26.8 26.8 26.8
Treasury shares -3.3 -3.3 -3.3
Fair value reserve 0.0 0.0 0.0
Other unrestricted equity reserves 0.1 - -
Retained earnings and exchange differences -8.4 4.8 5.7
Net result attributable to owners of the -9.3 -8.7 -14.4
parent
--------------------------------------------------------------------------------
Equity attributable to owners of the parent 43.9 57.7 52.8
Non-controlling interest 0.3 0.3 0.3
--------------------------------------------------------------------------------
Total equity 44.2 58.0 53.2
--------------------------------------------------------------------------------
Non-current liabilities
Convertible bond 8.1 7.8 7.9
Non-current interest-bearing liabilities 34.1 44.0 37.7
Non-current interest-free liabilities and 2.2 4.0 2.0
provisions
Deferred tax liabilities 3.1 4.2 3.6
--------------------------------------------------------------------------------
Total non-current liabilities 47.5 60.0 51.2
Current liabilities
Current interest-bearing liabilities 24.6 22.1 22.6
Current provisions 4.1 4.1 4.1
Trade and other payables 51.6 49.1 55.3
Liabilities for current tax 0.3 0.8 0.7
Total current liabilities 80.6 76.1 82.8
--------------------------------------------------------------------------------
Total liabilities 128.1 136.1 134.0
--------------------------------------------------------------------------------
Total equity and liabilities 172.3 194.0 187.2
================================================================================
CONDENSED STATEMENT OF PROFIT OR LOSS
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
Net sales 33.7 41.6 69.2 75.9 142.7
Other operating income 0.2 0.2 0.4 0.4 0.9
Expenses -33.7 -38.6 -68.4 -72.0 -136.5
Share of associates and joint ventures' 0.0 - 0.0 - 0.0
result
Depreciation, amortization and impairment -2.0 -2.0 -7.0 -3.9 -8.1
--------------------------------------------------------------------------------
Operating result -1.8 1.3 -5.7 0.4 -1.1
Financial items, net -1.9 -1.3 -3.4 -7.6 -10.8
--------------------------------------------------------------------------------
Result before income taxes -3.7 0.0 -9.1 -7.2 -11.8
Income taxes -0.3 -0.6 -0.2 -1.5 -2.6
--------------------------------------------------------------------------------
Profit / loss for the period -4.0 -0.6 -9.3 -8.7 -14.4
--------------------------------------------------------------------------------
Attributable to:
Owners of the parent -3.9 -0.6 -9.3 -8.7 -14.4
Non-controlling interest 0.0 0.0 0.0 0.0 0.0
Total -4.0 -0.6 -9.3 -8.7 -14.4
================================================================================
Earnings per share, EUR, basic -0.04 0.00 -0.09 -0.09 -0.14
Earnings per share, EUR, diluted -0.04 0.00 -0.09 -0.09 -0.14
Operating result, as % of net sales -5.4 3.1 -8.3 0.5 -0.8
Profit / loss for the period, as % of net -11.8 -1.4 -13.4 -11.5 -10.1
sales
Non-recurring items included in operating 0.0 0.1 -3.3 0.1 0.3
result
Operating result, non-recurring items -1.8 1.2 -2.4 0.3 -1.4
excluded
Operating result, non-recurring items -5.4 2.9 -3.5 0.4 -1.0
excluded, as % of net sales
CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
Profit / loss for the period -4.0 -0.6 -9.3 -8.7 -14.4
Other comprehensive income
Total exchange differences on translating foreign 0.6 -0.1 0.3 -0.7 0.5
operations
Fair value changes of available-for-sale assets 0.0 0.0 0.0 0.0 0.0
Income tax on other comprehensive income 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Other comprehensive income for the reporting 0.6 -0.1 0.3 -0.7 0.5
period, net of tax
--------------------------------------------------------------------------------
Total comprehensive income for the reporting -3.3 -0.7 -9.0 -9.4 -14.0
period
--------------------------------------------------------------------------------
Attributable to
Owners of the parent -3.3 -0.7 -8.9 -9.4 -14.0
Non-controlling interest 0.0 0.0 0.0 0.0 0.0
Total comprehensive income for the reporting -3.3 -0.7 -9.0 -9.4 -14.0
period
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 1-6/2012 1-6/2011 1-12/2011
Cash flows from operating activities
Cash flow before change in net working capital 0.6 -3.9 -7.7
Change in net working capital -3.0 0.6 12.2
--------------------------------------------------------------------------------
Net cash flow from operating activities -2.4 -3.3 4.4
Cash flow from investing activities
Business combinations - - 0.0
Other purchases of non-current assets -3.0 -2.5 -5.7
Proceeds from sale of other non-current assets 0.0 0.2 0.2
--------------------------------------------------------------------------------
Net cash flow from investing activities -3.0 -2.3 -5.5
--------------------------------------------------------------------------------
Cash flow before financing -5.4 -5.6 -1.1
Cash flow from financing activities
Share issue and conversion of convertible bond, - 5.8 5.8
net
Increase in non-current liabilities - 47.8 47.9
Decrease in non-current liabilities -1.5 -1.8 -3.4
Changes in loan receivables (increase - / 0.0 0.0 0.1
decrease +)
Increase in short-term liabilities 4.7 19.9 34.9
Decrease in short-term liabilities -5.1 -61.2 -81.5
Other financing 0.0 0.0 0.0
--------------------------------------------------------------------------------
Net cash flow from financing activities -1.9 10.6 3.8
--------------------------------------------------------------------------------
Effect of exchange rate changes -0.2 -1.0 0.2
Net change in cash and cash equivalents -7.5 4.0 2.9
================================================================================
Cash and cash equivalents at the beginning of 18.6 15.7 15.7
period
Cash and cash equivalents at the end of period 11.1 19.7 18.6
--------------------------------------------------------------------------------
Net change in cash and cash equivalents -7.5 4.0 2.9
================================================================================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million Share Share Other Reserve for Treasu Fair
capita premium restricted invested ry value
l account equity unrest. shares reserve
reserves equity
----------------------------------------------------------------
Equity at 1 12.7 25.3 0.0 0.1 -3.3 0.0
January, 2011
--------------------------------------------------------------------------------
Total - - 0.0 - - 0.0
comprehensive
income for the
period
Share issue - - - 5.9 - -
Conversion of - - - 20.8 - -
convertible
bond
Equity at 30 12.7 25.3 0.0 26.8 -3.3 0.0
June, 2011
================================================================================
EUR million Share Share Other Reserve for Treasu Fair
capita premium restr. invested ry value
l account equity unrest. shares reserve
reserves equity
----------------------------------------------------------------
Equity at 1 12.7 25.3 0.0 26.8 -3.3 0.0
January, 2012
--------------------------------------------------------------------------------
Total - - 0.0 - - 0.0
comprehensive
income for the
period
Reclassific. - - 0.0 - - -
Equity at 30 12.7 25.3 0.0 26.8 -3.3 0.0
June, 2012
================================================================================
EUR million Retaine Exchan Equity attr. Non-contr Total
d ge to owners of oll. equity
earning diff. the parent interest
s
---------------------------------------------------
Equity at 1 January, 2011 4.6 -0.3 39.1 0.3 39.5
--------------------------------------------------------------------------------
Total comprehensive income -8.7 -0.7 -9.4 0.0 -9.4
for the period
Share-based incentive plan 0.2 - 0.2 - 0.2
Share-based incentive plan, 0.0 - 0.0 - 0.0
tax effect
Share issue - - 5.9 - 5.9
Conversion of convertible -2.3 - 18.5 - 18.5
bond
Cost effect of the share 3.4 - 3.4 - 3.4
price compensation related
to convertible bond
conversion
Equity at 30 June, 2011 -2.8 -1.0 57.7 0.3 58.0
================================================================================
EUR million Other Retaine Exchan Equity attr. Non-cont Total
unrestr. d ge to owners of r. equity
equity earning diff. the parent interest
reserves s
----------------------------------------------------------------
Equity at 1 - -8.4 -0.3 52.8 0.3 53.2
January, 2012
--------------------------------------------------------------------------------
Total - -9.3 0.3 -8.9 0.0 -9.0
comprehensive
income for the
period
Reclassificatio 0.1 -0.1 - 0.0 - 0.0
n
Share-based - 0.0 - 0.0 - 0.0
incentive plan
Share-based - 0.0 - 0.0 - 0.0
incentive
plan, tax
effect
---------------
Equity at 30 0.1 -17.7 0.1 43.9 0.3 44.2
June, 2012
================================================================================
KEY RATIOS
30.6.2012 30.6.2011 31.12.2011
EBITDA, as % of net sales (1 1.8 5.6 4.9
Operating result (EBIT), as % of net sales -8.3 0.5 -0.8
Profit / loss for the period, as % of net -13.4 -11.5 -10.1
sales
Gross capital expenditure, EUR million 3.0 2.5 5.7
Gross capital expenditure, as % of net sales 4.4 3.3 4.0
Equity ratio, % 27.8 31.9 31.1
Gearing, % 151.1 127.4 128.5
Net gearing, % 125.9 93.4 93.5
Net interest-bearing debt, EUR million 55.6 54.2 49.7
Capital employed, end of period, EUR million 111.0 131.8 121.4
Return on equity, %, annualized -38.2 -35.7 -31.2
Return on capital employed, %, annualized -8.9 0.4 0.3
Number of personnel, average 837 912 899
Number of personnel, end of period 813 907 870
(1 EBITDA = Operating result + depreciation,
amortization and impairment.
PER SHARE DATA
30.6. 30.6. 31.12.
2012 2011 2011
Number of registered shares, 104800 104800 104800
end of period, treasury shares
excluded (1,000)
Number of shares issued, end of 104800 104800 104800
period, adjusted with share issue,
treasury shares excluded (1,000)
Number of shares, average, adjusted 104800 96,785 100826
with share issue, treasury shares
excluded (1,000)
Number of shares, dilution effect of 111531 109528 110538
the convertible bond taken into
account, average, adjusted with share
issue, treasury shares excluded (1,000)
EPS, basic, adjusted with share -0.09 -0.09 -0.14
issue, EUR
EPS, diluted, adjusted with share -0.09 -0.09 -0.14
issue, EUR
Adjusted equity attributable to 0.42 0.55 0.50
owners of the parent per share, EUR
Price per adjusted earnings per share -3.1 -11.4 -3.1
(P/E) ratio
Price per adjusted equity attributable 0.64 1.85 0.89
to owners of the parent per share
Market capitalization of registered 28.3 106.9 47.2
shares, EUR million
Share turnover, % (number of shares 10.6 4.4 8.5
traded, % of the average registered
number of shares)
Number of shares traded, (1,000) 11,132 4,135 8,447
Closing price of the share, EUR 0.27 1.02 0.45
Highest quoted price, EUR 0.74 1.27 1.27
Lowest quoted price, EUR 0.24 0.87 0.40
Volume-weighted average quoted 0.46 1.09 0.84
price, EUR
DEFINITIONS OF KEY RATIOS
Definitions of key ratios are presented in 2011 financial statements as well as
in January - March 2012 interim report.
ACCOUNTING PRINCIPLES
The consolidated interim financial statements of Glaston Group are prepared in
accordance with International Financial Reporting Standard IAS 34 Interim
Financial Reporting as approved by the European Union. They do not include all
of the information required for full annual financial statements.
The accounting principles applied in these interim financial statements are the
same as those applied by Glaston in its consolidated financial statements as at
and for the year ended 31 December, 2011, with the exception of certain new or
revised or amended standards and interpretations which have been applied from 1
January, 2012. These amended standards and interpretations are presented in
2011 financial statements as well as in January - March 2012 interim report.
SEGMENT INFORMATION
The reportable segments of Glaston are Machines, Services and Software
Solutions. The reportable segments apply Glaston Group's accounting and
measurement principles. Glaston follows the same commercial terms in
transactions between segments as with third parties.
The reportable segments consist of operating segments, which have been
aggregated in accordance with the criteria of IFRS 8.12. Operating segments
have been aggregated, when the nature of the products and services is similar,
the nature of the production process is similar, as well as the type or class
of customers. Also the methods to distribute products or to provide services
are similar.
The reportable Machines segment consists of Glaston's operating segments
manufacturing glass processing machines and related tools. The Machines segment
includes manufacturing and sale of glass tempering, bending and laminating
machines sold under Tamglass and Uniglass brands, glass pre-processing machines
sold under the Bavelloni brand as well as manufacturing and sale of tools.
Services segment includes maintenance and service of glass processing machines,
machine upgrades and sale of spare parts.
Software Solutions segment's product offering, sold under the Albat+Wirsam
brand, covers enterprise resource planning systems for the glass industry,
software for window and door glass manufacturers, and software for glass
processor's integrated line solutions.
The unallocated operating result consists of head office operations of the
Group.
The non-recurring items of 2012 include goodwill impairment loss and
restructuring costs resulting from closure of offices. The non-recurring items
of 2011 consist of reversals of the provisions made in prior years.
Segment assets include external trade receivables and inventory, and segment
liabilities include external trade payables and advance payments received. In
addition, segment assets and liabilities include business related prepayments
and accruals as well as other business related receivables and liabilities.
Segment assets and liabilities do not include loan receivables, prepayments and
receivables related to financial items, interest-bearing liabilities, accruals
and liabilities related to financial items, income and deferred tax assets and
liabilities nor cash and cash equivalents.
Machines
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
--------------------------------------------------------------------------------
External sales 21.7 27.4 43.6 47.5 89.8
Intersegment sales 0.0 0.2 0.0 0.2 0.2
--------------------------------------------------------------------------------
Net sales 21.7 27.6 43.6 47.6 90.0
EBIT excluding non-recurring items -1.7 0.2 -2.6 -1.7 -1.9
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items -7.8 0.6 -5.9 -3.6 -2.1
Non-recurring items - - -3.0 - 0.2
--------------------------------------------------------------------------------
EBIT -1.7 0.2 -5.6 -1.7 -1.7
EBIT-% -7.8 0.6 -12.8 -3.6 -1.9
Net working capital 43.9 54.0 47.9
--------------------------------------------------------------------------------
Number of personnel, average 507 561 557
Number of personnel, end of period 489 571 541
--------------------------------------------------------------------------------
Services
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
--------------------------------------------------------------------------------
External sales 6.7 8.1 14.9 16.2 29.9
Intersegment sales 0.3 0.4 0.5 0.6 1.2
--------------------------------------------------------------------------------
Net sales 7.0 8.5 15.5 16.9 31.1
EBIT excluding non-recurring items 1.0 2.3 2.7 3.8 5.6
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 13.7 26.8 17.4 22.6 17.9
Non-recurring items - 0.1 - 0.1 0.1
--------------------------------------------------------------------------------
EBIT 1.0 2.3 2.7 3.9 5.7
EBIT-% 13.7 27.5 17.4 23.0 18.4
Net working capital 22.0 22.9 21.9
--------------------------------------------------------------------------------
Number of personnel, average 124 135 127
Number of personnel, end of period 125 124 117
--------------------------------------------------------------------------------
Software Solutions
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
--------------------------------------------------------------------------------
External sales 5.3 6.1 10.6 12.1 23.0
Intersegment sales 0.0 0.0 0.0 0.1 0.1
--------------------------------------------------------------------------------
Net sales 5.3 6.2 10.7 12.2 23.1
Share of associates' and joint ventures' results 0.0 - 0.0 - 0.0
EBIT excluding non-recurring items 0.9 0.3 1.1 1.3 1.7
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 17.4 5.3 10.3 10.8 7.5
Non-recurring items 0.0 0.0 -0.3 0.0 0.0
--------------------------------------------------------------------------------
EBIT 0.9 0.4 0.8 1.4 1.8
EBIT-% 17.6 6.0 7.2 11.1 7.7
Net working capital 21.2 20.3 20.4
--------------------------------------------------------------------------------
Number of personnel, average 193 201 202
Number of personnel, end of period 186 199 200
--------------------------------------------------------------------------------
Glaston Group
EUR million
Net sales 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
--------------------------------------------------------------------------------
Machines 21.7 27.6 43.6 47.6 90.0
Services 7.0 8.5 15.5 16.9 31.1
Software Solutions 5.3 6.2 10.7 12.2 23.1
Other and intersegment sales -0.3 -0.6 -0.5 -0.9 -1.6
Glaston Group total 33.7 41.6 69.2 75.9 142.7
--------------------------------------------------------------------------------
EBIT 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
--------------------------------------------------------------------------------
Machines -1.7 0.2 -2.6 -1.7 -1.9
Services 1.0 2.3 2.7 3.8 5.6
Software Solutions 0.9 0.3 1.1 1.3 1.7
Other and eliminations -2.0 -1.6 -3.6 -3.1 -6.8
EBIT excluding non-recurring items -1.8 1.2 -2.4 0.3 -1.4
--------------------------------------------------------------------------------
Non-recurring items 0.0 0.1 -3.3 0.1 0.3
EBIT -1.8 1.3 -5.7 0.4 -1.1
--------------------------------------------------------------------------------
Net financial items -1.9 -1.3 -3.4 -7.6 -10.8
--------------------------------------------------------------------------------
Result before income taxes and non-controlling -3.7 0.0 -9.1 -7.2 -11.8
interest
Income taxes -0.3 -0.6 -0.2 -1.5 -2.6
Result -4.0 -0.6 -9.3 -8.7 -14.4
--------------------------------------------------------------------------------
Number of personnel, average 837 912 899
Number of personnel, end of period 813 907 870
--------------------------------------------------------------------------------
Segment assets 30.6.2012 30.6.2011 31.12.2011
-----------------------------------------------------------
Machines 88.5 97.8 94.5
Services 28.4 29.4 28.9
Software Solutions 25.1 24.5 25.1
Other 4.8 6.2 5.3
Total segment assets 146.9 157.9 153.8
-----------------------------------------------------------
Other assets 25.4 36.2 33.3
Total assets 172.3 194.0 187.2
-----------------------------------------------------------
Segment liabilities 30.6.2012 30.6.2011 31.12.2011
-----------------------------------------------------------
Machines 44.6 43.7 46.6
Services 6.4 6.5 6.9
Software Solutions 3.9 4.2 4.8
Other 2.2 1.3 1.8
Total segment liabilities 57.1 55.7 60.1
-----------------------------------------------------------
Other liabilities 71.0 80.3 73.9
Total liabilities 128.1 136.1 134.0
-----------------------------------------------------------
Net working capital 30.6.2012 30.6.2011 31.12.2011
-----------------------------------------------------------
Machines 43.9 54.0 47.9
Services 22.0 22.9 21.9
Software Solutions 21.2 20.3 20.4
Other 2.6 4.9 3.5
Total Glaston Group 89.8 102.1 93.7
-----------------------------------------------------------
Net sales by geographical areas
EUR million 1-6/2012 1-6/2011 1-12/2011
----------------------------------------------------
EMEA 33.6 34.5 68.1
Asia 15.4 20.2 33.6
America 20.2 21.1 41.0
Total 69.2 75.9 142.7
----------------------------------------------------
Order intake
EUR million 1-6/2012 1-6/2011 1-12/2011
--------------------------------------------------
Machines 39.8 47.1 89.2
Services 16.6 16.7 31.3
Software Solutions 9.7 11.8 20.9
Total Glaston Group 66.0 75.5 141.3
--------------------------------------------------
QUARTERLY NET SALES, OPERATING RESULT, ORDER INTAKE AND ORDER BOOK
Machines
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2011 2011 2011 2011
--------------------------------------------------------------------------------
External sales 21.7 21.9 26.1 16.2 27.4 20.1
Intersegment sales 0.0 0.0 0.1 0.0 0.2 0.0
--------------------------------------------------------------------------------
Net sales 21.7 21.9 26.2 16.2 27.6 20.1
--------------------------------------------------------------------------------
EBIT excluding non-recurring items -1.7 -0.9 1.5 -1.7 0.2 -1.9
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items -7.8 -4.1 5.6 -10.5 0.6 -9.2
Non-recurring items - -3.0 0.2 - - -
-----------------------------------------
EBIT -1.7 -3.9 1.7 -1.7 0.2 -1.9
--------------------------------------------------------------------------------
EBIT-% -7.8 -17.7 6.3 -10.5 0.6 -9.2
--------------------------------------------------------------------------------
Services
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2011 2011 2011 2011
--------------------------------------------------------------------------------
External sales 6.7 8.3 7.6 6.1 8.1 8.1
Intersegment sales 0.3 0.2 0.4 0.2 0.4 0.2
--------------------------------------------------------------------------------
Net sales 7.0 8.5 7.9 6.3 8.5 8.3
--------------------------------------------------------------------------------
EBIT excluding non-recurring items 1.0 1.7 0.9 0.9 2.3 1.5
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 13.7 20.5 11.0 14.0 26.8 18.4
Non-recurring items - - 0.0 0.0 0.1 -
-----------------------------------------
EBIT 1.0 1.7 0.9 0.9 2.3 1.5
--------------------------------------------------------------------------------
EBIT-% 13.7 20.5 11.4 14.8 27.5 18.4
--------------------------------------------------------------------------------
Software Solutions
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2011 2011 2011 2011
--------------------------------------------------------------------------------
External sales 5.3 5.4 5.6 5.3 6.1 6.0
Intersegment sales 0.0 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Net sales 5.3 5.4 5.6 5.3 6.2 6.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share of associates' and joint ventures' 0.0 - - 0.0 - -
results
EBIT excluding non-recurring items 0.9 0.2 0.8 -0.3 0.3 1.0
--------------------------------------------------------------------------------
EBIT-%, excl. non-recurring items 17.4 3.3 13.4 -6.3 5.3 16.4
Non-recurring items 0.0 -0.3 - 0.0 0.0 -
-----------------------------------------
EBIT 0.9 -0.2 0.8 -0.3 0.4 1.0
--------------------------------------------------------------------------------
EBIT-% 17.6 -3.1 13.4 -6.3 6.0 16.4
--------------------------------------------------------------------------------
Net sales
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2011 2011 2011 2011
--------------------------------------------------------------------------------
Machines 21.7 21.9 26.2 16.2 27.6 20.1
Services 7.0 8.5 7.9 6.3 8.5 8.3
Software Solutions 5.3 5.4 5.6 5.3 6.2 6.0
Other and intersegment sales -0.3 -0.2 -0.5 -0.2 -0.6 -0.2
Glaston Group total 33.7 35.5 39.3 27.5 41.6 34.2
--------------------------------------------------------------------------------
EBIT
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2011 2011 2011 2011
--------------------------------------------------------------------------------
Machines -1.7 -0.9 1.5 -1.7 0.2 -1.9
Services 1.0 1.7 0.9 0.9 2.3 1.5
Software Solutions 0.9 0.2 0.8 -0.3 0.3 1.0
Other and eliminations -2.0 -1.6 -2.2 -1.4 -1.6 -1.6
EBIT excluding non-recurring items -1.8 -0.6 0.9 -2.6 1.2 -0.9
--------------------------------------------------------------------------------
Non-recurring items 0.0 -3.3 0.2 0.0 0.1 -
---------------------------------------
EBIT -1.8 -3.9 1.1 -2.5 1.3 -0.9
--------------------------------------------------------------------------------
Order book 30.6. 31.3. 31.12. 30.9. 30.6. 31.3.
2012 2012 2011 2011 2011 2011
--------------------------------------------------------------
Machines 30.8 34.2 34.6 33.1 35.4 40.2
Services 3.3 1.1 1.2 1.4 1.1 1.7
Software Solutions 1.6 1.5 1.8 2.2 2.2 2.5
--------------------
Total Glaston Group 35.7 36.7 37.6 36.7 38.7 44.3
--------------------------------------------------------------
Order intake
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2011 2011 2011 2011
---------------------------------------------------------------------
Machines 19.1 20.7 26.9 15.2 23.1 24.0
Services 9.1 7.5 8.0 6.7 8.0 8.7
Software Solutions 5.1 4.6 4.8 5.0 5.7 5.4
Total Glaston Group 33.2 32.8 39.7 26.8 36.7 38.1
---------------------------------------------------------------------
CONTINGENT LIABILITIES
EUR million 30.6.2012 30.6.2011 31.12.2011
Mortgages and pledges
On own behalf 488.4 519.5 490.1
On behalf of others 0.1 0.2 0.1
Guarantees
On own behalf 0.8 0.2 0.5
On behalf of others 0.0 0.0 0.0
Lease obligations 8.4 11.0 9.6
Repurchase obligations - 0.2 -
Other obligation on own behalf 0.6 0.0 0.8
Mortgages and pledges include EUR 111.7 million shares in group companies and
EUR 41.2 million receivables from group companies.
Glaston Group has international operations and can be a defendant or plaintiff
in a number of legal proceedings incidental to those operations. The Group does
not expect the outcome of any unmentioned legal proceedings currently pending,
either individually or in the aggregate, to have material adverse effect upon
the Group's consolidated financial position or results of operations.
DERIVATIVE INSTRUMENTS
EUR million 30.6.2012 30.6.2011 31.12.2011
Nominal Fair Nominal Fair Nominal Fair
value value value value value value
Currency
derivatives
Currency - - 0.1 0.0 - -
forwards
Commodity
derivatives
Electricity 0.2 0.0 0.2 0.1 0.1 0.0
forwards
Derivative instruments are used only for hedging purposes. Nominalvalues of
derivative instruments do not necessarily correspond with the actual cash flows
between the counterparties and do not therefore give a fair view of the risk
position of the Group. The fair values are based on market valuation on the
date of reporting.
PROPERTY, PLANT AND EQUIPMENT
EUR million
Changes in property, plant and equipment 1-6/2012 1-6/2011 1-12/2011
Carrying amount at beginning of the period 18.7 19.5 19.5
--------------------------------------------------------------------------------
Additions 0.3 0.5 1.2
Disposals -0.0 -0.2 -0.2
Depreciation and amortization -1.2 -1.3 -2.5
Impairment losses and reversals of impairment - 0.0 -0.1
losses
Reclassification and other changes - 0.6 0.6
Exchange differences 0.0 -0.2 0.2
Carrying amount at end of the period 17.8 18.9 18.7
--------------------------------------------------------------------------------
At the end of June 2012 Glaston did not have of contractual commitments for the
acquisition of property, plant and equipment. At the end of June 2011 Glaston
had EUR 0.1 million of contractual commitments for the acquisition of property,
plant and equipment.
SHAREHOLDER INFORMATION
20 largest shareholders 30 June, 2012
Shareholders Number of % of shares shares and votes
1 GWS Trade Oy 13,446,700 12.73
2 Oy G.W.Sohlberg Ab 12,819,400 12.14
3 Varma Mutual Pension Insurance Company 9,447,320 8.95
4 Suomen Teollisuussijoitus Oy 9,049,255 8.57
5 Sumelius Bjarne Henning 2,164,733 2.05
6 Sumelius Bertil Christer 2,018,533 1.91
7 Oy Investsum Ab 1,820,000 1.72
8 Sumelius-Fogelholm Birgitta Christina 1,754,734 1.66
9 Von Christierson Charlie 1,600,000 1.52
10 Nordea Pro Finland Fund 1,210,000 1.15
11 Sumelius-Koljonen Barbro 1,175,238 1.11
12 Fennia Life 1,140,000 1.08
Insurance Company
13 The Finnish Cultural Foundation 1,084,760 1.03
14 Ehrnrooth Helene Margareta 1,000,000 0.95
15 Oy Cacava Ab 1,000,000 0.95
16 Nordea Life Assurance Finland Ltd 850,000 0.81
17 Huber Karin 800,800 0.76
18 Evli Alexander Management Oy 788,582 0.75
19 Drumbo Oy 750,000 0.71
20 Investment Fund Aktia Capital 734,574 0.70
--------------------------------------------------------------------------------
20 largest shareholders total 64,654,629 61.23
Nominee registered shareholders 544,677 0.52
Other shares 40,389,330 38.25
--------------------------------------------------------------------------------
Total 105,588,63 100.00
6
RELATED PARTY TRANSACTIONS
Glaston Group's related parties include the parent, subsidiaries, associates
and joint ventures. Related parties also include the members of the Board of
Directors and the Group's Executive Management Group, the CEO and their family
members. Also the shareholders, which have significant influence in Glaston
through shareholding, are consider to be related parties, as well as the
companies controlled by these shareholders.
Glaston follows the same commercial terms in transactions with associates and
joint ventures and other related parties as with third parties.
The Group has leased premises from companies owned by individuals belonging to
the management. The lease payments were in January - June EUR 0.3 (0.3)
million.
During the review period there were no related party transactions whose terms
would differ from the terms in transactions with third parties.
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