Glaston Oyj Abp - Interim report (Q1 and Q3)

GLASTON’S INTERIM REPORT 1 JANUARY – 30 JUNE 2015: Strong order book, pre-processing machines business sold

Helsinki, Finland, 2015-08-06 12:00 CEST (GLOBE NEWSWIRE) -- Glaston
Corporation                      INTERIM REPORT                   6 August 2015
at 13.00 (EET) 

GLASTON'S INTERIM REPORT 1 JANUARY - 30 JUNE 2015: Strong order book,
pre-processing machines business sold 

This release is a summary of Glaston Corporation's Interim Report for
January-June 2015. The complete report is attached to this release as a
pdf-file. The stock exchange release is also available on the company's website
at the address www.glaston.net. 

KEY POINTS  JANUARY - JUNE 2015 (Continuing Operations):

  -- Orders received in January-June totalled EUR 55.0 (49.5) million.
Orders received in the second quarter were EUR 32.5 (25.8) million.
  -- The order book on 30 June 2015 was EUR 56.0 (32.7) million.
  -- Consolidated net sales in January-June totalled EUR 56.5 (51.3) million.
Second-quarter net sales were EUR 30.1 (31.1) million.
  -- The comparable EBITDA was EUR 4.5 (2.8) million, i.e. 8.0 (5.4)% of net
     sales.
  -- The comparable operating profit in January-June, excluding non-recurring
     items, was EUR 3.0 (1.5) million.
The second-quarter comparable operating profit, excluding non-recurring
     items, was EUR 1.7 (1.8) million. 1)
  -- The comparable operating profit in January-June was EUR 2.8 (0.8) million,
     i.e. 4.9 (1.6)% of net sales.
The second-quarter comparable operating profit was EUR 1.5 (1.2) million.
     1)
  -- Continuing Operations' return on capital employed (ROCE) was 20.2 (11.4)%.
  -- Continuing Operations' January-June earnings per share were EUR 0.01
     (0.02).
  -- Glaston's interest-bearing net debt totalled EUR 6.1 (10.7) million.
  -- Glaston revises its business outlook for 2015 as a result of the sale of
     its pre-processing machines business.
Glaston expects that Continuing Operations' 2015 net sales and comparable
     operating profit, excluding non-recurring items, will exceed the level of
     2014
(in 2014 net sales were EUR 109.7 million and comparable operating profit,
     excluding non-recurring items, was EUR 5.5 million).


1) Due to the sale of Glaston Italy S.p.A., internal purchases eliminated in
the comparable figures up to 30 June 2015 changes from 1 July 2015 to external
purchases. This impacts the comparability of Continuing Operations' operating
profit. In the table section of the interim report, we present both Continuing
Operations' operating profit and Continuing Operations' comparable operating
profit. Continuing Operations' comparable operating profit is presented in the
segment data section. In Continuing Operations' comparable operating profit,
those internal items that in future will be external items have been restated. 


GLASTON REVISES ITS OUTLOOK FOR 2015
Glaston closed the sale of its pre-processing machines business as the second
quarter ended. As a result, Glaston reports the sale of the pre-processing
machines business in Discontinued Operations, not in the operating result of
Continuing Operations. The overall outlook for Glaston's business remains
unchanged but, due to the change in reporting classification, Glaston revises
its outlook. 

Revised outlook: Glaston expects that Continuing Operations' 2015 net sales and
comparable operating profit, excluding non-recurring items, will exceed the
level of 2014 (in 2014 net sales were EUR 109.7 million and comparable
operating profit, excluding non-recurring items, was EUR 5.5 million). 

Previous outlook: Glaston expects that 2015 net sales and operating profit,
excluding non-recurring items, will exceed the level of 2014 (in 2014, net
sales were EUR 124.5 million and operating profit, excluding non-recurring
items, was EUR 4.9 million). 


PRESIDENT & CEO ARTO METSÄNEN:"The single most significant event for Glaston during the second quarter was
the disposal of pre-processing operations. The decision to sell pre-processing
was influenced, in addition to the challenging market situation, by the fact
that its profitability did not correspond to the targets we set for it and that
achieving them would have required large investments in the business in
question. 

In the period 2012-2015, we have implemented a major restructuring in Glaston.
By disposing of both the software and pre-processing machine businesses, we can
now focus on high-technology heat treatment and services. In heat treatment
technology and service business, our expertise is strong, and we consider
growth conditions to be good in these product groups. In heat treatment, the
product portfolio has been strongly updated in recent years and our market
position is good. We will continue our goal-oriented product development
investments in this segment. Our intention is to continue to grow both
organically and through acquisitions. 

Our Continuing Operations' order book at the end of the second quarter was at a
significantly higher level than the previous year. For the early part of the
year and in respect of the following financial periods, we present in this
report a comparable operating profit for Continuing Operations, which we will
follow in future. Our comparable operating profit, excluding non-recurring
items grew from EUR 1.5 million in the first half of 2014 to EUR 3.0 million.
Second-quarter net sales and operating profit fell slightly short of both the
previous year's level and our target, due to project deliveries being moved
forward. 

During the period we renewed our financing agreement, which replaced the
previous financing agreement, which was maturing. The financing agreement
secures the company's financing for the coming three-year period and reduces
Glaston's financing and administration costs. In addition, the new agreement
removes restrictions on the company's distribution of funds.” 






                                                            restated    restated
KEY FIGURES                                     30.6.2015  30.6.2014  31.12.2014
Order book, EUR million                              56.0       32.7        56.0
Orders, received, EUR million                        55.0       49.5       133.6
Net sales, EUR million                               56.5       51.3       109.7
EBITDA, comparable, EUR million                       4,5        2,8         8,6
EBITDA, comparable, as % of net sales                 8,0        5,4         7,8
Operating result (EBIT), comparable, EUR              2,8        0,8         4,9
 million                                                                        
Operating result (EBIT), comparable , as % of         4,9        1,6         4,5
 net sales                                                                      
Profit / loss for the period, EUR million           -11.1        0.6         1.1
Earnings per share, EUR                             -0.06       0.00        0.01
Net cash flow from operating activities              -5.6       -1.3        16.6
Return on capital employed, %, annualized           -26.2        2.2         7.9
Gross capital expenditure, continuing and             2.8        1.0         3.6
 discontinued operations, EUR million                                           
Equity ratio, %                                      43.7       45.0        47.7
Gearing, %                                           40.0       46.7        29.6






OPERATING ENVIRONMENT
In the second quarter, the uneven development of markets continued. In the EMEA
area and North America, the markets continued to develop in a more positive
direction. In Asia and in South America, the markets remained quiet. 

MACHINES
In Machines business, the market situation continued to be challenging in the
second quarter. The positive development of the North American market
continued, but more moderately than before. In South America, the market
continued to be quiet, with Brazil significantly falling short of expectations. 

In the EMEA area, good development continued. In the second quarter, Glaston
received a major follow-up order valued at over EUR 4 million from Spain. Also
in the second quarter, Glaston closed a deal worth EUR 2.4 million with
Europe's leading glass processor that included a Glaston FC500™ flat tempering
line, a ProBend™ line for tempering high quality bent glass, and a Glaston Care
service agreement. In June, Glaston closed a EUR 2.6 million machine sale with
a Kuwaiti customer. 

In Asia, the market continued to weaken, and activity in China in particular
was on a low level. In Australia and New Zealand, markets showed signs of
picking up. 

SERVICES
The Services segment's market continued its good development, with the second
quarter being even more lively than the first. Glaston's market position
remained strong. 

In upgrade products, the order intake improved in all geographical areas. In
the second quarter, significant upgrade deals were closed in Canada, Australia,
the USA and Israel, where the transfer of a tempering machine from Austria to
Israel was agreed, utilising the Glaston Move service 

OUTLOOK
We expect Glaston's markets to grow moderately in 2015. In sales of new
machines, we expect good development to continue in the EMEA area and in North
America. We expect the South American and Asian markets to remain at their
present level in the short term. In the services market, we expect the good
development to continue during the latter part of the year and particularly so
with respect to upgrades. 

At the heart of Glaston's strategy is profitable growth. Glaston's expertise is
strongest in heat treatment technology and service business, on which we can
now fully focus our resources. We consider growth conditions to be good in
these product groups. 

Glaston revises its business outlook for 2015. Glaston expects that Continuing
Operations' 2015 net sales and comparable operating profit, excluding
non-recurring items, will exceed the level of 2014 (in 2014 net sales were EUR
109.7 million and comparable operating profit, excluding non-recurring items,
was EUR 5.5 million). 

Previous outlook: Glaston expects that 2015 net sales and operating profit,
excluding non-recurring items, will exceed the level of 2014 (in 2014, net
sales were EUR 124.5 million and operating profit, excluding non-recurring
items, was EUR 4.9 million). 


PRESS MEETING
An analyst and press conference is organized at Glaston's office on
Yliopistonkatu 7, Helsinki, on 6 August 2015 at 14.00 p.m. 


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 leading company in glass processing technologies. We provide
high-quality heat treatment machines and services for architectural, solar,
appliance and automotive applications. We are committed to our customers'
success over the entire lifecycle of our offering. Moreover, we continuously
innovate and develop technologies to enable the glass processing industry to
reach ever higher standards in quality and safety. Glaston's shares (GLA1V) are
listed on the NASDAQ OMX Helsinki Ltd. in Finland. For more information, please
visit: www.glaston.net 

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

Attachments:

Glaston Interim report Q2 2015.pdf