Glaston Oyj Abp - Interim report (Q1 and Q3)

Glaston Interim Report 1 January – 31 March 2014: A quiet start to the year, order book grew

Helsinki, Finland, 2014-04-23 13:00 CEST (GLOBE NEWSWIRE) -- Glaston
CorporationINTERIM REPORT23 April 2014 at 14.00 

Glaston Interim Report 1 January - 31 March 2014:A quiet start to the year,
order book grew 

Glaston Corporation is adopting a new disclosure procedure in accordance with
Regulations and Guidelines 7/2013 (disclosure obligation on issuers) of the
Financial Supervisory Authority and is publishing the interim report for
January-March 2014 as an attachment to this stock exchange release. This
release is a summary of Glaston's January-March 2014 interim report. Glaston
Corporation's interim report for January-March 2014 is a PDF file attachment to
this stock exchange release and is available on the company's website at the
address www.glaston.net. 



Key points January-March 2014

  -- Orders received in January-March totalled EUR 26.4 (28.8) million. 
  -- The order book on 31 March 2014 was EUR 41.3 (39.4) million. 
  -- Consolidated net sales in January-March totalled EUR 23.1 (26.4) million. 
  -- EBITDA, excluding non-recurring items, was EUR 0.4 (0.8) million, i.e. 1.7
     (3.0)% of net sales.
  -- The operating result, excluding non-recurring items, was a loss of EUR 0.7
     (0.4 loss) million, i.e. -3.2 (-1.4)% of net sales.
  -- The operating result was a loss of EUR 0.7 (3.4 profit) million, i.e. -3.2
     (12.8)% of net sales.
  -- Continuing Operations' return on capital employed (ROCE) was -3.7 (28.9)%.
  -- Continuing Operations' earnings per share were EUR -0.00 (0.04). Continuing
     and Discontinued Operations' earnings per share were EUR -0.00 (0.04).
  -- Glaston's interest-bearing net debt totalled EUR 9.0 (10.5) million.
  -- Glaston expects net sales and operating profit to grow in 2014.



President and CEO Arto Metsänen
“Seasonal fluctuations are typical in Glaston's industry and the first quarter
is traditionally quiet. Both the crisis in Ukraine and particularly its impact
on neighbouring areas as well as a quiet market in Brazil affected order intake
in the early part of the year. 

Glaston's net sales in the review period totalled EUR 23.1 million and the
operating result, excluding non-recurring items, was a loss of EUR 0.7 million.
Compared with the corresponding period of the previous year, our relative
profitability has developed positively due to a lighter cost structure. 

Our order book has developed positively and stood at EUR 41.3 million on 31
March 2014.Deliveries resulting from last year's good order intake will be made
after the first quarter.This will create a foundation for a positive
performance in 2014.We continue to expect that the market will grow moderately
this year. 

The Asian market is expected to grow in the long term.As a technology leader,
Glaston wants to be well positioned when demand for low emissivity (Low-E)
glass and high-quality glass starts to grow.To respond to market needs, we will
expand our factory located in Tianjin.The expansion is expected to be completed
in autumn 2015.” 



KEY FIGURES                                     31.3.2014  31.3.2013  31.12.2013
Order book, EUR million                              41.3       39.4        39.1
Orders, received, EUR million                        26.4       28.8       123.3
Net sales, EUR million                               23.1       26.4       122.2
EBITDA, EUR million                                   0.4        4.5        10.5
EBITDA, as % of net sales                             1.7       17.2         8.6
Operating result (EBIT), EUR million                 -0.7        3.4         5.9
Operating result (EBIT), as % of net sales           -3.2       12.8         4.8
Profit / loss for the period, EUR million            -0.7        4.7         1.3
Earnings per share, EUR                             -0.00       0.04        0.01
Net cash flow from operating activities               0.2        2.3         7.1
Return on capital employed, %, annualized            -3.7       29.4         9.9
Gross capital expenditure, continuing and             0.6        1.1         2.8
 discontinued operations, EUR million                                           
Equity ratio, %                                      46.0       44.6        45.4
Gearing, %                                           48.7       53.4        49.3

Markets
In the first quarter of 2014, Glaston's markets were relatively quiet at the
start of the review period. A pick-up was perceptible, however, towards the end
of the review period. Development was stable in the North American and Asian
markets. In the EMEA area, the challenging market situation continued. The
development of the South American market slowed. 

The market situation of the Machines segment was satisfactory during the first
quarter of 2014. In the pre-processing machine market, the difficult market
situation continued due to intensifying competition and aggressive pricing. The
crisis in Ukraine and the weakness of the Russian rouble affected sales of
pre-processing and heat treatment machines. 

The Services segment market was subdued during January and February, but a
significant pick-up was perceptible in the final month of the review period. 

Outlook
Glaston still expects the market overall to grow moderately in 2014. We believe
that stable development will continue in Asia. The recovery in the North
American market will continue. In South America, the development of the market
has slowed. The biggest challenges are in the EMEA area and particularly in
Southern and Eastern Europe, where the political situation in Ukraine is
causing uncertainty in neighbouring areas. 

Glaston operates in growing product and service markets and the company's
financial situation is stable. Drivers of growth include increasing use of
safety glass, more widespread utilisation of energy-saving glass in both
renovations and new construction, and greater use of glass in construction
generally. In accordance with our new strategy, we will increasingly focus on
enhancing customer benefit and customer experience as well as on traditional
key areas of expertise, namely glass processing machines and related services
covering the entire lifecycle of products. 

Glaston expects net sales and operating profit to grow in 2014.

Press meeting
An analyst and press conference is organized at Glaston's office on
Yliopistonkatu 7, Helsinki, on 23 April 2014 at 15.00 p.m. 

Disclosure procedure
Glaston Corporation is adopting a new disclosure procedure in accordance with
Regulations and Guidelines 7/2013 (disclosure obligation on issuers) of the
Financial Supervisory Authority and is publishing the interim report for
January-March 2014 as an attachment to this stock exchange release. Glaston
Corporation's interim report for January-March 2014 is a PDF file attachment to
this stock exchange release and is available on the company's website at the
address www.glaston.net. 

For further information, please contact:
President & CEO Arto Metsänen, tel. +358 10 500 6100
Chief Financial Officer Sasu Koivumäki, tel. +358 10 500 500



GLASTON CORPORATION
Agneta Selroos
Director, Communications and Marketing


Glaston Corporation
Glaston is a global company developing glass processing technology for
architectural, solar, appliance and automotive applications. Our product
portfolio ranges from pre-processing and safety glass machines to services. We
are dedicated to our customers' continued success and provide services for all
glass processing needs with a lifecycle-long commitment in mind. Further
information is available at www.glaston.net. Glaston's share (GLA1V) is listed
on the NASDAQ OMX Helsinki Small Cap List. 

Distribution: NASDAQ OMX, key media, www.glaston.net

Attachments:

Glaston Interim Report January-March 2014.pdf