2007-11-07 07:34:32 CET
2007-11-07 07:34:32 CET
REGULATED INFORMATION
Glaston Oyj Abp - Quarterly report
Glaston s Interim Report January-September 2007
GLASTON CORPORATION STOCK EXCHANGE RELEASE 7
November 2007, 8.30 a.m.
Glaston's restructuring is proceeding
Glaston's Interim Report January-September 2007
* Consolidated net sales grew by 17% to EUR 181.0 million (restated
1-9/2006: 154.9 million). Third quarter net sales were EUR 57.3
(7-9/2006: 56.3) million.
* Operating profit excluding non-recurring items was EUR 9.5
(restated 1-9/2006: 5.4) million, i.e. 5.2 (3.5)% of net sales.
Third quarter operating profit was EUR 4.0 (restated 7-9/2006:
3.5) million, i.e. 6.9 (6.2)% of net sales.
* Earnings per share were EUR 0.03 (1-9/2006: 0.10), of which the
third quarter contribution was EUR 0.03 (7-9/2006: 0.04).
* Orders received totalled EUR 170.7 (restated1-9/2006: 137.9)
million. In the third quarter, orders received totalled EUR 39.8
(7-9/2006: 54.8) million.
* The order book on 30 September 2007 was EUR 125.7 (30.9.2006:
93.8) million.
* The market situation, excluding North America, is expected to
continue to be satisfactory.
* The integration of the Albat+Wirsam Software Group into Glaston
has proceeded faster than initially planned.
President & CEO Mika Seitovirta:"At the end of the review period the Group's order book remained at
good levels. A slow down of private building and financial market
instability in the USA had a weakening effect on the third quarter
order book for the Heat Treatment business area. The forecast for the
final quarter of the year is good, exceeding the level of the third
quarter," says President & CEO Mika Seitovirta."The Glaston Group's net sales for the early part of the year were
better than the previous year, and third quarter net sales were at
the previous year's level.
Profit levels remained unsatisfactory. Software Solutions' result was
good.""The integration of Albat+Wirsam, acquired in July, is proceeding
faster than planned. Albat+Wirsam brings significant added value to
the One-Stop-Partner concept and customer feedback has been good all
over the world.""Measures to improve the Group profitability continued. A number of
programmes are under way in the business areas to improve the quality
of the delivery chain and enhance operational efficiency. The results
of the efficiency measures will begin to be seen during 2008," says
Seitovirta.
The Glaston Group's structure and segmentation
In this report, Glaston's figures are divided into Continuing
Operations and Discontinued Operations.
The business areas of Continuing Operations are Pre-Processing and
Heat Treatment, as well as Software Solutions as of the third
quarter. The geographical segments to be reported quarterly are EMEA
(Europe, Middle East and Africa), America (North, Central and South
America) and Asia (China and the rest of the Asia-Pacific area).
The Pre-Processing segment includes glass pre-processing machines
sold under the Bavelloni brand, maintenance and service operations,
as well as tool manufacturing. The Heat Treatment segment includes
tempering, bending and laminating machines sold under the Tamglass
and Uniglass brands, maintenance and service operations, as well as
the glass processing operations of Tamglass Glass Processing. The
Software Solutions segment comprises the operations of the A+W
Software Group. Group costs unallocated to the segments are reported
separately.
The Discontinued Operations' Energy business area figures are
published in accordance with the reporting practice of the IFRS 5
standard Discontinued Operations.
Market
The favourable development of the construction industry continued in
all market areas, excluding North America, where residential
construction in particular was subdued. Public construction developed
favourably in all markets. The North American situation, however, has
increased general uncertainty.
Demand has grown for Glaston's One-Stop-Partner deliveries, i.e.
joint deliveries and combinations of pre-processing and safety glass
machines as well as production management systems.
Pre-Processing
In the third quarter, the market situation of the Pre-Processing
business area was good. In contrast with the general market
situation, sales in North America developed positively. Sales in the
South American market developed better than anticipated, while sales
in the EMEA area and North Asia fell short of targets.
In the third quarter, measures aimed at improving the efficiency of
product delivery were initiated in the Pre-Processing business area.
Sales of service and maintenance business in the EMEA area and in
North America continued their strong growth, and sales of spare parts
in particular grew compared with the previous year.
Maintenance sales based on annual contracts developed well during the
period under review, with growth from the corresponding period being
122%, although the starting level was modest.
Heat Treatment
In the third quarter, the market situation of the Heat Treatment
business area was good, excluding North America.
Sales in the EMEA area developed favourably, with the strongest
growth being in Eastern Europe and the Middle East. Led by China, the
Asian market continued its growth, but the longer processing times
for building permits is influencing customers' decision-making, which
was evident in the delays of contracts to the latter part of the
year.
In South America, demand for glass processing machines grew, boosted
by favourable economic development.
Sales of service and maintenance business grew in the EMEA area and
in North America. In the USA, control system updates and accessories
particularly sold well during the third quarter.
Heat Treatment's maintenance sales based on annual contracts
developed strongly in January-September, and growth was 59% from the
previous year.
Software Solutions
In the third quarter, the market situation of the Software Solutions
business area was good. The market in Central, Western and Northern
Europe was stable. The Eastern Europe market, and Russia in
particular, grew strongly, as did the Middle East. Market growth in
Asia was enhanced by a large project realised in Japan.
The general North American market situation has not been reflected in
Software Solutions business, as a number of large glass manufacturers
are investing in new software solutions.
One-Stop-Partner
Sales of the One-Stop-Partner business, i.e. joint deliveries and
combinations of pre-processing and safety glass machines as well as
production management systems, reached EUR 51.3 million in the period
under review (1-12/2006: 18.8 million). In the third quarter, sales
amounted to around EUR 3.5 million. The subdued market in North
America was also reflected in OSP sales. Overall, demand for OSP
deals remained at a satisfactory level during the period under
review.
Realised OSP orders are divided into replacement investments and new
developments, particularly for the architectural glass industry in
public construction projects as well as solar-energy generating
systems.
Received orders
New orders received by Glaston in January-September totalled
EUR 170.9 (1-9/2006: 137.9) million, representing 24 per cent growth
from the previous year. Mostly due to the market downturn in North
America, third quarter orders were at a lower level compared to the
corresponding period the previous year.
During July-September, new orders totalled EUR 39.8 (7-9/2006: 54.8)
million.
Geographical distribution of new orders, EUR million
+-------------------------------------------+
| | 1-9/2007 | 1-9/2006 | Change, % |
|---------+----------+----------+-----------|
| EMEA | 108.3 | 72.5 | 49.4 |
|---------+----------+----------+-----------|
| America | 35.0 | 44.7 | -21.7 |
|---------+----------+----------+-----------|
| Asia | 27.4 | 20.7 | 32.4 |
|---------+----------+----------+-----------|
| Total | 170.7 | 137.9 | 23.8 |
+-------------------------------------------+
Order book
Glaston's order book grew and on 30 September 2007 was EUR 125.7
(31.12.2006: 97.8) million. The Heat Treatment business area
accounted for EUR 92.6 million of the order book, Pre-Processing for
EUR 24.4 million and Software Solutions for EUR 8.6 million.
+--------------------------------------------------------------+
| Order book, EUR million | 30.9.2007 | 30.9.2006 | 31.12.2006 |
|-------------------------+-----------+-----------+------------|
| Pre-Processing | 24.4 | 20.2 | 19.9 |
|-------------------------+-----------+-----------+------------|
| Heat Treatment | 92.6 | 73.6 | 77.9 |
|-------------------------+-----------+-----------+------------|
| Software Solutions | 8.6 | - | - |
|-------------------------+-----------+-----------+------------|
| Total | 125.7 | 93.8 | 97.8 |
+--------------------------------------------------------------+
Net sales and operating profit
Glaston's net sales grew by 17% to EUR 181.0 (adjusted 1-9/2006:
154.9) million in the financial period. Third quarter net sales were
EUR 57.3 (restated 7-9/2006: 56.3) million. Pre-Processing's net
sales in the third quarter were EUR 20.6 (1-9/2006: 20.9) million,
Heat Treatment's net sales were EUR 30.2 (7-9/2006: 35,5) million and
Software Solution's net sales were EUR 6.8 million.
+-------------------------------------------------------------------+
| Net sales, EUR | 7-9/2007 | 7-9/2006 | 1-9/2007 | 1-9/2006 |
| million | | | | |
|-----------------------+----------+----------+----------+----------|
| Pre-Processing | 20.6 | 20.9 | 65.6 | 62.5 |
|-----------------------+----------+----------+----------+----------|
| Heat Treatment | 30.2 | 35.5 | 109.5 | 92.7 |
|-----------------------+----------+----------+----------+----------|
| Software Solutions | 6.8 | - | 6.8 | - |
|-----------------------+----------+----------+----------+----------|
| Parent company + | -0.3 | -0.1 | -0.9 | -0.3 |
| elim. | | | | |
|-----------------------+----------+----------+----------+----------|
| Total | 57.3 | 56.3 | 181.0 | 154.9 |
+-------------------------------------------------------------------+
In January-September the company's comparable operating profit
excluding non-recurring items was EUR 9.5 (restated 1-9/2006: 5.4)
million, i.e. 5.2 (3.5) per cent of net sales. The third quarter
operating profit was EUR 4.0 (restated 7-9/2006: 3.5) million, i.e.
6.9 (6.2) per cent of net sales. The Pre-Processing business area
accounted for EUR 0.3 million of the third quarter operating profit,
Heat Treatment for EUR 3.2 million and Software Solutions for EUR 1.6
million.
+-------------------------------------------------------------------+
| Operating profit, | 7-9/2007 | 7-9/2006 | 1-9/2007 | 1-9/2006 |
| EUR million | | | | |
|-----------------------+----------+----------+----------+----------|
| Pre-Processing | 0.3 | 0.4 | 1.2 | -0.1 |
|-----------------------+----------+----------+----------+----------|
| Heat Treatment | 3.2 | 4.0 | 11.9 | 8.5 |
|-----------------------+----------+----------+----------+----------|
| Software Solutions | 1.6 | - | 1.6 | - |
|-----------------------+----------+----------+----------+----------|
| Parent company + | -1.1 | -0.9 | -5.2 | -3.0 |
| elim. | | | | |
|-----------------------+----------+----------+----------+----------|
| Total | 4.0 | 3.5 | 9.5 | 5.4 |
|-----------------------+----------+----------+----------+----------|
| Non-recurring items | - | -1.1 | -7.3 | -1.7 |
|-----------------------+----------+----------+----------+----------|
| Group, total | 4.0 | 2.4 | 2.1 | 3.7 |
+-------------------------------------------------------------------+
Profit for the financial period was EUR 2.6 (7.8) million. Return on
invested capital was 7.4% (8.8%). Earnings per share were EUR 0.03
(0.10).
Taxes for the financial period totalled EUR 3.4 (-0.1) million. Taxes
for the comparison period included tax refunds for previous years
totalling EUR 1.8 million. Italy's IRAP tax, based on the difference
between production value and production costs, as well as
non-deductible items in the taxation of certain Group companies had
the effect of increasing taxes for the financial period.
In June, Glaston's Board of Directors decided on the sale of
non-operating fixed assets, as part of restructuring arrangements and
their financing. We estimate that the capital gain on the sale will
be around EUR 4 million, which will be recognised as income for the
years 2007 and 2008.
Financing
The Group's financial position remained good. Equity ratio on 30
September 2007 was 54.8 (31.12.2006: 61.9) per cent. Glaston
Continuing Operations' cash flow from business operations was EUR 3.2
(-8.9) million and cash flow from investments was EUR -24.4 (-3.4)
million. Cash flow from investments includes the acquisition cost of
Albat+Wirsam shares, EUR 16.9 million, as well as the redemption of
minority interest shares in Albat+Wirsam subsidiaries, EUR 0.7
million. Cash flow from financing in January-September was EUR 6.0
(-8.4) million, which includes dividends paid in the period of
EUR 7.1 (13.4) million and an increase in short-term loans of
EUR 16.0 million. Growth in debt is related to financing the
acquisition of Albat+Wirsam shares.
Cash flow from Discontinued Operations was EUR 18.3 (4.9) million,
of which cash consideration received from the sale of Energy
operations amounted to EUR 10.7 million during the period.
The Group's cash and cash equivalents on 30 September 2007 totalled
EUR 13.6 (on 31.12.2006 10.5) million. Interest-bearing net debt
amounted to EUR 12.3 (-2.8) million. Gearing stood at 9.4 (-2.0) per
cent.
Company acquisitions
In May, Glaston Corporation signed an agreement to acquire the German
Albat+Wirsam Software Group. The deal was finalised on 2 July 2007
and the purchase price was EUR 21.3 million. The company has 239
employees. The purchase cost calculation for the shares is stated in
the notes to this bulletin.
The Energy business area, sold by the company to M-real Corporation
in the spring, was officially separated from the Group on 1 July
2007. The value of the deal to Glaston was around EUR 15.4 million.
The result and impact of the Energy business on the Group financial
position is described in the notes to this bulletin in the section
'Discontinued Operations'.
Capital expenditure
The Group's capital expenditure, excluding company acquisitions,
totalled EUR 8.4 (8.3) million. Significant individual projects
included a EUR 1.4 million extension to Tamglass Glass Processing's
Lempäälä factory and a EUR 2.4 million acquisition of production
machines. R&D capitalisations totalled EUR 2.3 million.
Organisation and personnel
The Group's new organisational structure came into effect in July.
During the summer, both the parent company Kyro Corporation and most
of the Group's subsidiaries changed their legal names to Glaston. In
June, the Group decided to centralise its Heat treatment product
development operations in Finland and to discontinue its Cattin unit
in Switzerland. During the third quarter, the Cattin unit's
operations were wound up. Personnel reductions affecting 12 employees
were made in the period under review.
At the end of September, Glaston had 1,425 (30.9.2006: 1,221)
employees. The numberincludes Albat+Wirsam's personnel, a total of
239 employees. Of the Group's personnel, 29.4 per cent were in
Finland and 50.0 per cent elsewhere in Europe. The proportion of
Group employees working in Asia was 7.2 per cent and in the Americas
13.4 per cent. The average number of employees was 1,270 (30.9.2006:
1,248).
Shares and share prices
Glaston's share capital on 30 September 2007 was EUR 12,696,000. A
total of 78,436,500 shares were in circulation on the last day of
September. In January-September, a total of 6,702,595 shares were
traded, representing 4.0 per cent of the total number of shares. The
lowest price paid for a share was EUR 3.52 and the highest price EUR
4.53. The average price during the period was EUR 4.03.
Incentive scheme
On 9 May 2007, Glaston's Board of Directors decided on a new
share-based incentive scheme for the Glaston Group's key personnel.
The scheme has three one-year performance periods, namely the
calendar years 2007, 2008 and 2009. Bonuses will be paid in 2008,
2009 and 2010 in company shares and cash. The proportion to be paid
in cash will cover taxes and tax-related costs arising to key
personnel from the bonus. Shares cannot be disposed of within two
years of the bonus being awarded.
The potential bonus from the scheme for the 2007 performance period
will be based on the Group's profit and growth in net sales. If the
targets established for the performance criteria of the incentive
scheme for the years 2007-2009 are attained in full, the bonuses to
be paid on the basis of the scheme will correspond in gross value
(including the portion paid in cash) to approximately 1,305,000
Glaston Corporation shares.
Decisions of the Annual General Meeting
The company's Annual General Meeting was held on 13 March 2007. The
meeting approved the financial statements for 2006 and released the
Board of Directors and the President & CEO from liability for the
financial year. The meeting also approved the Board of Directors'
proposal to pay a dividend of EUR 0.09 per share, a total of EUR 7.1
million.
The Annual General Meeting authorised the Board of Directors to
acquire the company's own shares up to a maximum of 7,605,096 shares.
The shares can be acquired to develop the company's capital
structure, in financing or implementing possible company acquisitions
or other arrangements, as part of the company's or its subsidiaries'
incentive schemes or to be retained by the company or otherwise
disposed of or invalidated.
The Annual General Meeting also decided to authorise the Board of
Directors to decide on the issuing of new shares and own shares
and/or the transfer of own shares in the company's possession either
against payment or without payment.
By virtue of the authorisation, the Board of Directors is entitled to
decide on the issuing of a maximum of 7,935,000 new shares and/or the
disposal of a maximum of 7,935,000 own shares possessed by the
company, yet so that the total number of shares issued and/or
disposed of can be a maximum of 7,935,000 shares.
The authorisation is valid until the end of the 2009 Annual General
Meeting.
Disposals and acquisition of own shares
As part of the acquisition of Albat+Wirsam, Glaston and A+W founder
Dr Wirsam did agree that Dr Wirsam will buy 329,904 of the treasury
shares held by Glaston for 3.99 euros per share. This was completed
immediately after the closing.
Glaston's Board of Directors decided to exercise the authority
granted by the Annual General Meeting to acquire the company's own
shares. In January-September, the company acquired 913,500 of its own
shares at a price of EUR 4.30 per share, a total of EUR 3.9 million.
The shares have been acquired to hedge the cash flow risk relating to
the incentive scheme. The authorisation remains unexercised in
respect of 7,021,500 shares. At the end of the period under review,
Glaston held a total of 913,500 shares, corresponding to 1.15 per
cent of the company's shares with an accounting counter value of
EUR 4.30.
During the third quarter, the company did not acquire its own shares.
Events after the review period
Glaston's glass processing unit, Tamglass Glass Processing, sold its
balcony glass business to Lejo Network Oy on 1 October 2007. As part
of the consideration, Tamglass Glass Processing acquired a 12 per
cent shareholding in Lejo Network Oy.
The deal included assets of the balcony glazing business, including
balcony system product rights. The business operations sold account
for approximately 5 per cent of Glass Processing's turnover. The deal
has no impact on personnel.
Uncertainties in the near future
The company's long-term risks have been outlined in the 2006
financial statements. The Group considers the short-term
uncertainties to be the development of the US market and the US
dollar, as well as the expansion of this development into other
markets. The price development and availability of raw materials and
components, mainly in Finland, also constitutes a significant
uncertainty factor.
Outlook
Glaston's market situation, excluding North America, is expected to
continue at satisfactory levels, and at the end of period under
review the level of Glaston's order book was good. In line with
earlier forecasts, the Glaston Group's 2007 net sales and operating
profit are expected to grow.
Helsinki, 7 November 2007
Glaston Corporation
Board of Directors
The interim report is unaudited.
Sender:
Glaston Corporation
Agneta Selroos
Corporate Communications and IR Manager
For further information, please contact:
Additional information about the interim report can be obtained from
Glaston Group's President & CEO Mika Seitovirta and Chief Financial
Officer Kimmo Lautanen, tel. +358 9 5422 3300.
Glaston Corporation
Glaston Corporation (formerly Kyro) is a growing, financial sound and
international glass technology company. Glaston is the global market
leader in glass processing machines, and a comprehensive
One-Stop-Partner supplier to its customers. Its product range and
service network are the most extensive in the industry. Glaston's
well-known brands are Bavelloni, in pre-processing machines and
tools, Tamglass and Uniglass in safety glass machines and
Albat+Wirsam in software solutions.
Glaston's own glass processing unit, Tamglass Glass Processing, is a
manufacturer of high quality safety glass products operating in
Finland.
Glaston's share (GLA1V) is listed on the Helsinki Stock Exchange
(OMX) Mid Cap List.
www.glaston.net
Consolidated Income
Statement,
EUR million Restated Restated Restated
7-9-2007 7-9-2006 1-9/2007 1-9/2006 1-12/2006
Continuing
Operations
Net sales 57,3 56,3 181,0 154,9 218,9
Other operating
income 0,0 0,7 0,3 1,7 2,4
Operating expenses 51,5 52,1 167,3 146,8 205,0
Non-recurring items 1,1 7,3 1,7 5,2
Depreciation 1,8 1,5 4,6 4,4 5,4
Operating result 4,0 2,4 2,1 3,7 5,6
% of net sales 6,9 4,3 1,2 2,4 2,6
Operating result
excluding
non-recurring items 4,0 3,5 9,5 5,4 10,9
% of net sales 6,9 6,2 5,2 3,5 5,0
Financial income and
expenses -0,2 0,5 0,1 0,5 0,3
Result before taxes 3,7 2,9 2,2 4,2 5,9
Income tax -2,1 -1,0 -3,4 0,1 -1,7
Result for the
financial period,
Continuing
Operations 1,6 2,0 -1,2 4,2 4,2
Discontinued
Operations
Profit for the
financial period,
Discontinued
Operations 0,8 1,5 3,8 3,6 4,8
Result for the
financial period 2,4 3,5 2,6 7,8 8,9
Distribution of
result for financial
period
To parent company
shareholders 2,4 3,5 2,6 7,8 8,9
To minority 0,0 0,0 0,0 0,0 0,0
Earnings per share,
euros,
Continuing
Operations 0,02 0,02 -0,02 0,05 0,05
Earnings per share,
euros,
Discontinued
Operations 0,01 0,02 0,05 0,05 0,06
Earnings/share,
euros, total 0,03 0,04 0,03 0,10 0,12
Consolidated Balance
Sheet, EUR million 30.9.2007 30.9.2006 31.12.2006
Assets
Non-current assets 128,8 123,7 123,2
Inventories 55,2 51,8 49,5
Trade and other
receivables 74,2 74,1 66,9
Assets recognised at
fair value
through profit and
loss 0,3 0,1 0,1
Cash and cash
equivalents 13,6 10,5 10,5
Non-current assets
held-for-sale 1,1
Assets, total 273,3 260,2 250,2
Shareholders' equity
and liabilities
Shareholders' equity
attributable
to parent company
shareholders 131,9 136,7 140,1
Minority interest 0,0 0,0 0,0
Shareholders'
equity, total 131,9 136,8 140,1
Non-current
interest-bearing
liabilities 2,1 0,6 0,6
Non-current
interest-free
liabilities 12,0 15,8 14,9
Current
interest-bearing
liabilities 24,2 7,3 7,4
Current
interest-free
liabilities 102,8 99,7 87,1
Liabilities relating
to non-current
assets held for sale 0,3
Shareholders' equity
and liabilities,
total 273,3 260,2 250,2
Consolidated Cash Flow
Statement, EUR 1000
Restated Restated
1.1.-30.9. 1.1.-30.9. 1.1.-31.12.
29.6.1905 28.6.1905 28.6.1905
Cash flow from business
operations,
Continuing Operations
Profit for the financial
period -1,2 4,2 4,2
Adjustments 4,1 0,2 1,2
Cash flow before change in
working
capital 2,9 4,4 5,5
Change in working
capital 4,3 -6,6 -3,1
Cash flow from operations
Cash flow from operations
before
financial items and
taxes 7,2 -2,2 2,4
Operating result
excluding non-recurring
items 0,5 0,4 0,8
Dividends
received 0,0 0,0 0,0
Interest paid -1,3 -0,6 -1,0
Taxes paid -3,2 -6,5 -7,5
Cash flow from business
operations 3,2 -8,9 -5,2
Cash flow from investments,
Continuing Operations
Acquisition of
subsidiaries -17,6
Investments in
tangible and intangible
assets -7,0 -7,4 -10,9
Proceeds from the sale
tangible and intangible
assets 0,2 2,6 2,8
Proceeds from disposal
of available-for-sale equity
investments 0,0 3,2 3,2
Change in long-term loan
receivables 1,1 1,1
Taxes on proceeds of disposal
of energy business operations
in 2005 -2,9 -2,9
Cash flow from
investments -24,4 -3,4 -6,9
Cash flow from financing,
Continuing Operations
Acquisition of own
shares -3,9
Disposal of own
shares 1,3
Drawings of short-term
loans 16,0 5,6 5,6
Repayments of short-term
loans -0,2
Repayments of long-term
loans 0,0 -0,6 -0,6
Dividends paid -7,1 -13,4 -13,4
Cash flow from
financing 6,0 -8,4 -8,4
Discontinued Operations
Cash flow from business
operations 7,6 4,9 4,7
Cash flow from
investments 10,7 0,0 0,1
Cash flow from
financing 0,0 0,0 0,0
Cash flow from Discontinued
Operations 18,3 4,9 4,8
Change in cash and cash
equivalents 3,1 -15,8 -15,7
Cash and cash equiv. at
beginning
of period 10,5 26,3 26,3
Cash and cash equiv. at end
of period 13,6 10,5 10,5
Change in short-term loans in the
period 1-9/2007 includes
a change in issued commercial paper of nominal
value EUR 15.0 million.
Statement of
change in
consolidated
shareholders'
equity
Shareholders' equity
attributable to
parent company shareholders
EUR
million
Share Sha- Trans- Fair Own Re- Tot Mi- Share-
ca- re pre- lation value shares tained nority hol-
pital mium diffe- fund ear- inte- ders'
account rences nings rest equity,
total
Shareholders'
equity
1.1.2007 12,7 25,3 0,4 -0,2 -1,0 102,8 140,1 0,0 140,1
Cash flow
hedgings,
less taxes:
Profits and
losses
recognised in
shareholders'
equity 0,2 0,2 0,2
Translation
differences -1,3 -1,3 -1,3
Profits or
losses
from hedging
of net
investments
in
foreign
units,
less
taxes 0,0 0,0 0,0
Share-based
payments 0,1 0,1
Profit for
the financial
period 2,6 2,6 0,0 2,6
Income and
expenses
recognised in
the period,
total -1,2 0,2 2,6 1,6 0,0 1,6
Dividend
distribution -7,1 -7,1 -7,1
Disposal of
own
shares 0,2 1,0 1,2 1,2 1,2
Acquisition
of own
shares -3,9 -3,9 -3,9 -3,9
Shareholders'
equity
30.9.2007 12,7 25,3 -0,8 0,3 -3,9 95,6 131,9 0,0 131,9
EUR
million Share Sha- Trans- Fair Own Re- Tot Mi- Share-
ca- re pre- lation value shares tained nority hol-
pital mium diffe- fund ear- inte- ders'
account rences nings rest equity,
total
Shareholders'
equity
1.1.2006 12,7 25,3 1,5 -1,6 -1,0 102,0 139,0 0,0 139,0
Adjustment 5,3 5,3 5,3
Adjusted
shareholders'
equity
1.1.2006 12,7 25,3 1,5 -1,6 -1,0 107,3 144,3 0,0 144,3
Cash flow
hedgings,
less taxes:
Profits and
losses
equity
Profits and
losses
recognised in
shareholders'
equity -1,1 -1,1 -1,1
Translation
differences -0,9 -0,9 -0,9
Profits or
losses
from hedging 0,0
of net
investments
in foreign
units, 0,0
less taxes 0,0 0,0 0,0
Profit for
the
financial
period 7,8 7,8 0,0 7,8
Income and
expenses
recognised in
the period,
total -0,9 -1,1 7,8 5,8 5,8
Dividend
distribution -13,4 -13,4 -13,4
Adjusted
shareholders'
equity
30.9.2006 12,7 25,3 0,6 -2,7 -1,0 101,7 136,7 0,0 136,8
Segment-specific data
Net sales, EUR million 1-9/2007 1-9/2006 1-12/2006
Pre-Processing 65,6 62,5 89,1
Heat Treatment 109,5 92,7 131,3
Software Solutions 6,8
Parent company and eliminations -0,9 -0,3 -1,5
Total 181,0 154,9 218,9
Operating profit, excluding
non-recurring items, EUR million 1-9/2007 1-9/2006 1-12/2006
Pre-Processing 1,2 -0,1 0,3
Heat Treatment 11,9 8,5 13,5
Software Solutions 1,6
Parent company and eliminations -5,2 -3,0 -3,0
Total 9,5 5,4 10,9
Operating profit, excluding
non-recurring items, % 1-9/2007 1-9/2006 1-12/2006
Pre-Processing 1,9 % -0,2 % 0,3 %
Heat Treatment 10,8 % 9,2 % 10,3 %
Software Solutions 23,0 %
Glaston, total 5,2 % 3,5 % 5,0 %
Net sales by market area 1-9/2007 1-9/2006 1-12/2006
EMEA 97,7 89,0 126,1
America 56,0 45,4 65,4
Asia 27,3 20,5 27,5
Total 181,0 154,9 218,9
Net sales by market area, % 1-9/2007 1-9/2006 1-12/2006
EMEA 54,0 % 57,5 % 57,6 %
America 30,9 % 29,3 % 29,9 %
Asia 15,1 % 13,2 % 12,6 %
Total 100,0 % 100,0 % 100,0 %
Orders received, EUR million 1-9/2007 1-9/2006 1-12/2006
Pre-Processing 49,9 45,8 64,1
Heat Treatment 119,1 92,1 131,4
Software Solutions 1,6
Total 170,7 137,9 195,5
Order book, EUR million 30.9.2007 30.9.2006 30.12.2006
Pre-Processing 24,4 20,2 19,9
Heat Treatment 92,6 73,6 77,9
Software Solutions 8,6
Total 125,7 93,8 97,8
Personnel at end of period,
Continuing Operations 30.9.2007 30.9.2006 30.12.2006
Pre-Processing 559 612 590
Heat Treatment 614 601 590
Software Solutions 239
Parent company 13 8 9
Total 1 425 1 221 1 189
Personnel,
Discontinued Operations 24 22
Personnel, average,
Continuing Operations 1-9/2007 1-9/2006 1-12/2006
Pre-Processing 577 635 626
Heat Treatment 605 605 606
Software solutions 76
Parent company 12 8 8
Total 1 270 1 248 1 241
Personnel, Discontinued Operations 23 23
Calculation of key figures
Equity ratio, %=
Shareholders' equity x 100
Balance sheet total - advances received
Gearing, %=
Net interest-bearing liabilities x 100
Shareholders' equity
Net interest-bearing liabilities=
Interest-bearing liabilities - interest-bearing receivables - cash
and cash equivalents and other short-term investments
Return on equity (ROE), %=
Profit or loss for the period x 100
Shareholders' equity
Return on invested capital (ROI), %
Profit before taxes + interest and other financial expenses x 100
Balance sheet total - non-interest bearing liabilities (average)
Earnings per share (EPS)=
Profit for period attributable to parent company's shareholders
Average number of shares for period excluding treasury shares
Equity per share
Shareholders' equity
Number of shares outstanding at end of period
Adjusted Adjusted
Key figures 30.9.2007 30.9.2006 31.12.2006
Number of shares, 1,000 79 350 79 350 79 350
- of which outstanding 78 437 79 020 79 020
Return on invested capital, % 7,4 8,8 8,8
Return on equity, % 2,5 7,4 6,3
Equity ratio, % 54,8 61,1 61,9
Gearing, % 9,4 -2,0 -1,9
Equity per share, EUR 1,68 1,73 1,77
Investments in fixed
assets, EUR million 29,9 8,3 12,0
Personnel at end of year 1 425 1 245 1 211
Personnel (average) 1 270 1 272 1 264
Order book, Continuing
Operations, EUR million 125,7 93,8 97,8
Contingent liabilities,
EUR million 30.9.2007 30.9.2006 31.12.2006
Company mortgages 0,2 0,2 0,2
Other own liabilities 4,7 13,4 5,6
Discontinued Operations
1-9/2007 1-9/2006 1-12/2006
Result of Energy operations, including
profit on sale and taxes arising from it
Income 24,2 29,0 38,8
Expenses 19,0 24,1 32,4
Profit before taxes 5,2 4,9 6,4
Income taxes -1,4 -1,3 -1,7
Profit after taxes 3,8 3,6 4,8
Impact of sale of Energy business
on Group's financial position
Book values of sold balance sheet items
Tangible assets 13,8
Intangible rights 0,1
Inventories 0,2
Short-term liabilities -0,1
Assets and liabilities, total 14,0
Expenses attributed to sales 0,3
Profit on sale before taxes 1,1
Considerations, total 15,4
Consideration received in cash 10,6
Expenses attributed to sales 0,3
Cash flow from sale 10,4
From the sale price was recognised a EUR 4.7 million receivable
relating to the sale of future emissions rights. The estimated time
of realisation of the receivable is 2008-2012.
Long-term assets items classified as being held for sale and their
related liabilities
Long-term asset items held for sale
Tangible assets 0,9
Inventories 0,2
Assets, total 1,1
Liabilities relating to long-term
assets held for sale
Provisions 0,3
Liabilities, total 0,3
Long-term assets items classified as being held for sale and their
related liabilities are connected with the balcony glazing business
and the parent company's real estate and apartment block company
units.
Quarterly data
Restated net
sales, operating
result
and order book for Continuing
Operations, EUR million
Net sales 1-3/06 4-6/06 7-9/06 10-12/06 1-3/07 4-6/07 7-9/07
Pre-Processing 20,3 21,2 20,9 26,6 21,7 23,4 20,6
Heat Treatment 25,6 31,6 35,5 38,6 36,6 42,7 30,2
Software Solutions 6,8
Parent company
and eliminations 0,0 -0,1 -0,1 -1,2 -0,1 -0,5 -0,3
Total 45,9 52,7 56,3 64,0 58,2 65,6 57,3
Operating result
excluding
non-recurring
items 1-3/06 4-6/06 7-9/06 10-12/06 1-3/07 4-6/07 7-9/07
Pre-Processing -0,8 0,3 0,4 0,4 1,2 -0,2 0,3
Operating result,
% -4,0 1,5 1,8 1,5 5,3 -0,9 1,3
Heat Treatment 0,6 3,9 4,0 5,1 3,0 5,7 3,2
Operating result,
% 2,3 12,3 11,4 13,1 8,1 13,4 10,5
Software Solutions 1,6
Operating result,
% 23,1
Parent company
and eliminations -1,0 -1,1 -0,9 0,0 -2,4 -1,7 -1,1
Total -1,2 3,1 3,5 5,5 1,7 3,8 4,0
Operating result,
% -2,7 5,9 6,2 8,6 2,9 5,8 6,9
Operating result 1-3/06 4-6/06 7-9/06 10-12/06 1-3/07 4-6/07 7-9/07
Pre-Processing -0,8 0,3 -0,5 -2,7 1,2 -1,6 0,3
Operating result,
% -4,0 1,5 -2,2 -10,1 5,3 -7,0 1,3
Heat Treatment -0,1 3,9 3,8 4,6 3,0 -0,2 3,2
Operating result,
% -0,3 12,3 10,8 12,0 8,1 -0,4 10,6
Software Solutions 1,6
Operating result,
% 23,1
Parent company
and eliminations -1,0 -1,1 -0,9 0,0 -2,4 -1,8 -1,1
Total -1,9 3,1 2,4 1,9 1,7 -3,6 4,0
Operating result,
% -4,1 5,9 4,4 3,0 2,9 -5,4 6,9
Order book 03/06 06/06 09/06 12/06 03/07 06/07 09/07
Pre-Processing 17,8 22,1 20,2 19,9 20,2 25,9 24,4
Heat Treatment 51,6 59,7 73,6 77,9 72,3 95,7 92,6
Software Solutions 8,6
Total 69,4 81,8 93,8 97,8 92,5 121,6 125,7
Accounting principles
The interim report has been prepared in accordance with the
principles of recognition and valuation of the IFRS standards.
On 1 January 2007, the Group introduced the IFRS 7 Standard Financial
instruments: Disclosures in the Financial Statements, an amendment to
the IAS 1 Standard relating to Presentation of Financial Statements -
Capital Disclosures as well as IFRIC Interpretation 10 Interim
Financial Reporting and Impairment. The changes have no impact on
the Group's interim report.
The proportion of the Group's net sales accounted for by glass
processing machines tailored to customers' wishes and sold as
comprehensive deliveries has grown significantly, and for this reason
the Group as of 1 January 2007 recognises their delivery on the basis
of degree of completion of the delivery in accordance with IAS 11
Standard Construction Contracts. Comparison data have been adjusted
to correspond with the new recognition practice. The impact of the
adjustment on the financial statements reported in this interim
report are presented in a separate table.
The purchase cost calculation for Albat+Wirsam shares
Through an agreement signed on 2 July 2007, Glaston Corporation
acquired all of the shares of A+W Software AG Group. A+W Group is the
world's leading company in production management and reporting (ERP)
software for the flat glass, window and door industries.
The purchase price paid by Glaston Corporation was a total of
EUR 21.3 million, of which a sum of EUR 0.9 million represents a
discounted portion of an additional purchase price payable within two
years. The final acquisition cost of the shares is EUR 21.7 million,
including expert fees amounting to EUR 0.5 million. The
goodwill/acquisition cost of the acquired business may change on the
basis of terms and conditions relating to the purchase price of the
bill of sale.
In a business combination, tangible fixed assets are valued at fair
value based on the market prices of similar assets, taking into
consideration the age and condition of the assets and other
corresponding factors. Tangible assets are depreciated over their
useful life based on a management estimate in accordance with the
Group's depreciation principles.
Intangible assets acquired in a business combination are recognised
separately from goodwill at fair value at the time of acquisition, if
the fair value of the asset can be determined reliably.In the
acquired business, the Group has acquired identifiable intangible
assets mainly in the form of product rights and an order book of
technology deliveries
From the acquisition cost a fair value of EUR 6.5 million was
attributed to the product rights and order book. Fair value has been
determined using the Multi-Period Excess-Earnings (MEEM) method. The
useful life is five years. The deal includes goodwill amounting to
EUR 14.2 million. The creation of goodwill is based on expert
personnel, expected synergy benefits and the good profitability of
the acquired business.The impact of the company acquisition on the
Group's July-September net sales was EUR 6.8 million and on operating
profit EUR 1.6 million.
Management estimates that consolidated net sales in the period
1 January-30 September 2007 would have been around EUR 193 million,
if this company acquisition had been completed on 1 January 2007.The
table below presents the make-up of the A+W Group company acquisition
as of 2 July 2007.
Fair values Book values
recognised in before
combination combination
Tangible assets 0,0
Other intangible assets 6,5 0,0
Investments 0,7 0,7
Inventories 0,2 0,2
Interest-free receivables 7,7 7,7
Financial assets 3,9 3,9
Other interest-free liabilities -12,2 -9,7
Acquired net assets 6,7 2,6
Acquisition price 21,3
Expenses related to acquisition 0,5
Goodwill 15,1
Acquisition price paid as cash 20,3
Expenses related to acquisition 0,5
Cash and cash equivalents of
acquired companies -3,9
Cash flow impact 16,9
The purchase price allocation is preliminary.
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