Glaston Oyj Abp - Half Year financial report

Glaston Half Year Financial Report 1 January – 30 June 2016: Order intake picked up from the early part of the year

Helsinki, Finland, 2016-08-09 12:00 CEST (GLOBE NEWSWIRE) -- GLASTON
CORPORATION           HALF YEAR FINANCIAL REPORT   9 AUGUST 2016 AT 13.00 


Glaston Half Year Financial Report 1 January – 30 June 2016:  Order intake
picked up from the early part of the year 

This release is a summary of Glaston Corporation's half year financial report
January-June 2016. 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. 

ESMA (European Securities and Markets Authority) has published new guidelines
on alternative performance measures. As a result, Glaston is renaming the
alternative non-IFRS performance measures that it uses. Comparable operating
result excluding non-recurring items has been replaced with comparable
operating result, and comparable EBITDA excluding non-recurring items has been
replaced with comparable EBITDA. The definitions of the alternative performance
measures used are presented in the item ‘performance measure calculation
formulas’ of the table section of the interim report. A reconciliation with
IFRS performance measure is presented in the item ‘comparable operating
result’. 


This half year report’s comparison year figures refer to Continuing Operations.


APRIL–JUNE 2016

- Orders received totalled EUR 28.6 (32.5) million.

- Net sales totalled EUR 22.1 (30.1) million.

- Comparable EBITDA was EUR 0.2 (2.6) million.

- The operating result was a loss of EUR 0.6 (2.5 profit) million, i.e. -2.7
(8.2)% of net sales. 

- The comparable operating result was a loss of EUR 0.4 (1.7 profit) million,
i.e. -1.9 (5.8)% of net sales. 


JANUARY–JUNE 2016

- Orders received totalled EUR 53.7 (55.0) million.

- The order book on 30 June 2016 was EUR 40.9 (56.0) million.

- Net sales totalled EUR 51.5 (56.5) million.

- Comparable EBITDA was EUR 1.6 (4.7) million, i.e. 3.1 (8.3)% of net sales.

- The operating profit was EUR 0.1 (4.9) million, i.e. 0.2 (8.7)% of net sales.

- The comparable operating profit was EUR 0.3 (3.0) million, i.e. 0.5 (5.3)% of
net sales. 

- Continuing Operations’ return on capital employed (ROCE) was 0.7 (20.2)%.

- Continuing Operations’ earnings per share were EUR -0.00 (0.01).

- Interest-bearing net liabilities amounted to EUR 11.4 (6.1) million.



OUTLOOK
Glaston expects 2016 net sales to be approximately EUR 105 – 110 million and
the comparable operating profit to be approximately EUR 2 – 4 million.(In 2015
net sales were EUR 123.4 million and comparable operating profit was EUR 6.1
million). 


PRESIDENT & CEO ARTO METSÄNEN:
“Glaston’s markets remained quiet in the second quarter of the year and the
operating environment continued to be challenging. Our April–June net sales
declined from the previous year and totalled EUR 22.1 (30.1) million. The
decline in net sales was due primarily to weaker machine sales in the EMEA
area. In the Americas area, net sales were at a good level. In the Asian
market, the positive development of net sales that began in the first quarter
continued. 

Orders received in the second quarter totalled EUR 28.6 million and grew by
14.4% compared with the first quarter. Despite this, the order intake for the
first half of the year, a total of EUR 53.7 (55.0) million, was not at the
targeted level. 

Glaston’s comparable operating result for April–June was a loss of EUR -0.4
(1.7 profit) million. The result was affected in particular by lower than
expected net sales. Enhanced cost-saving measures will take effect and balances
the impact of the lower net sales. 

The glass processing market will continue to be challenging during the latter
part of the year. We will purposefully continue our measures to adjust costs to
the market situation. In Finland, we will initiate consultations with personnel
on the possible need for lay-offs and job reductions. The consultations will
cover all Glaston personnel in Finland.” 



KEY FIGURES                                     30.6.2016  30.6.2015  31.12.2015
                                                                                
Order book, EUR million                              40.9       56.0        38.5
Orders, received, EUR million                        53.7       55.0       107.4
Net sales, EUR million                               51.5       56.5       123.4
EBITDA, comparable, EUR million                       1.6        4.7         9.5
EBITDA, comparable, as % of net sales                 3.1        8.3         7.7
Operating result (EBIT), comparable, EUR              0.3        3.0         6.1
 million                                                                        
Operating result (EBIT), comparable , as % of         0.5        5.3         4.9
 net sales                                                                      
Profit / loss for the period, EUR million            -0.6      -11.1       -13.8
Earnings per share, EUR                             -0.00      -0.06       -0.07
Net cash flow from operating activities               0.2       -5.6        -3.0
Return on capital employed, %, annualized             0.7      -26.2       -13.8
Gross capital expenditure, continuing and             2.4        2.8         7.2
 discontinued operations, EUR million                                           
Equity ratio, %                                      45.8       43.7        43.9
Order book, EUR million                             43.,8       40.0        36.7



OPERATING ENVIRONMENT
In April–June, there were significant regional differences in the development
of the glass processing market. Growth in the North American market continued,
although more moderately. The South American market remained quiet. The Asian
market area grew slightly. In the EMEA area, the market levelled off. 

MACHINES
In the second quarter, the glass processing machines market continued to be
challenging.In a difficult market situation, Glaston succeeded in maintaining
its market position relative to competitors. 

In North America, the market situation continued to be favourable, and Glaston
received a follow-up order exceeding EUR 2 million from the US company Cardinal
Glass Industries for a Glaston FC1000™ tempering line.The second quarter
brought no change in the situation of the South American market.The market
remained quiet, and the weak Brazilian currency and instability in the
financial markets negatively impacted operations. 


In the Asian market area, positive development was perceptible in the Indian,
Australian and New Zealand markets. In China, the market situation continued to
be subdued, but cautious signs of a pick-up were evident at the end of the
period. 

In the EMEA area, the operating environment remained fairly low in the second
quarter. The economic uncertainty prevailing in the area and tightening
operating conditions slowed customers’ investment decisions. In May, Glaston
closed a deal exceeding EUR 2 million for the delivery of high technology
safety glass machines to HORN Glass Industries AG. 

SERVICES
Services’ strongest market remained North America. The EMEA area overall was
quiet, but demand varied significantly from country to country. In South
America and Asia, demand for services remained subdued. 

In the spare parts product group, good development continued in the second
quarter in all of the main market areas. The service market also developed
positively. Tool sales in the EMEA area advanced well, but continued to decline
in the other market areas. Pre-processing machine business and related services
remained at the level of the previous quarter. 

The second quarter did not bring an improvement in the market for modernisation
products. The number of orders received in the second quarter was low. In the
EMEA area, Glaston received from the UK a large modernisation order for a
Uniglass flat tempering machine, and one of the industry’s largest operators
bought an iLook™ quality measurement system for its production plant in
Germany. Glaston launched two new products: the ProL-zone modernisation product
for flat-laminated glass, and the iControL™ upgrade product for Uniglass
machines. 

OUTLOOK
In the second half of the year, the glass processing market is expected to
remain challenging as economic uncertainty continues. 

In Europe, a deterioration of the economic outlook and increased stability in
the operating environment will be reflected in customers’ investment decisions.
Despite this, Central and Eastern Europe offer growth opportunities. We expect
stable development in the North American market. In South America, the market
will remain quiet, particularly in Brazil. In the Asian market, we expect
cautious growth. 

Glaston expects 2016 net sales to be approximately EUR 105 – 110 million and
the comparable operating profit to be approximately EUR 2 – 4 million. (In 2015
net sales were EUR 123.4 million and comparable operating profit was EUR 6.1
million). 

PRESS MEETING
An analyst and press conference is organized at Glaston's office on
Yliopistonkatu 7, Helsinki, on 9 August 2016 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





Sender:
Agneta Selroos
Communications Director
Glaston Corporation
Tel. 010 500 6105


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 NASDAQ Helsinki Ltd. Further information is available at
www.glaston.net 

Distribution: NASDAQ Helsinki Ltd, key media, www.glaston.net

Attachments:

Glaston Half Year Financial Report.pdf