2011-10-26 12:00:00 CEST
2011-10-26 12:00:18 CEST
REGULATED INFORMATION
Glaston Oyj Abp - Interim report (Q1 and Q3)
Glaston Corporation Interim Report 1 January - 30 September 2011
Helsinki, Finland, 2011-10-26 12:00 CEST (GLOBE NEWSWIRE) --
Glaston Corporation Interim Report 1 January - 30 September 2011 26 October
2011 at 13.00
Glaston Corporation Interim Report 1 January - 30 September 2011
-- Orders received in January-September totalled EUR 101.6 (107.6) million.
Orders received in the third quarter totalled EUR 26.8 (38.5) million.
-- The order book on 30 September 2011 was EUR 36.7 (39.7) million.
-- Consolidated net sales in January-September were EUR 103.4 (111.8) million.
Third quarter net sales were EUR 27.5 (31.9) million.
-- EBITDA was EUR 3.8 (-1.4) million, i.e. 3.7 (-1.2)% of net sales.
-- The operating result excluding non-recurring items in January-September was
a loss of EUR 2.3 (7.3 loss) million, i.e. -2.2 (-6.6)% of net sales.
Third quarter operating result was a loss of EUR 2.6 (2.8 loss) million.
-- Return on capital employed (ROCE) was -1.6 (-8.3)%.
-- January-September earnings per share were EUR -0.13 (-0.16) and
third-quarter earnings per share were EUR -0.04 (-0.07).
Change to forecast for 2011
Glaston's outlook has been revised. Weakened market prospects will impact the
development of the final quarter. We expect 2011 net sales to be at the 2010
level, and the operating result to be a slight loss. (Earlier forecast: 2011
net sales expected to be least at the 2010 level and the operating result to
return to profit.)
President & CEO Arto Metsänen:
“In the third quarter, uncertainty in the world economy grew. The weaker
economic outlook was reflected in customers' willingness to invest and this led
to a postponement of larger investment decisions.
In the third quarter, our net sales did not develop according to our
expectations and were at a lower level than the previous year. The weak
third-quarter financial performance was mainly due to a fall in sales at the
end of the quarter. Operational adjustment measures will be robustly continued
during the final quarter of the year.
The final quarter will be overshadowed by a slowing of the world economy. The
uncertain market outlook will also be reflected in demand for glass processing
machines. For this reason, our forecast for our 2011 performance has been
revised. We expect 2011 net sales to be at the 2010 level, and the operating
result to be a slight loss.
We will purposefully continue our investments in those areas which do not
require significant investments from customers, namely Services, Software
Solutions and Tools. This week, at the Vitrum Fair in Milan, we will launch a
number of new products in the Services segment: the new Warranty5 five-year
guarantee programme for heat treatment machines as well as the web shop
GlastOnline, which initially will offer a range of spare parts for Tamglass and
Uniglass machines, a total of around 1,000 items.
Markets
Demand for glass processing machines weakened during the third quarter as
demand developed unevenly in different market areas. In the South American
market, positive development continued. In Western Europe, demand remained
weak, while in Eastern Europe the machine market picked up. In Asia, the
levelling off in the market that began in the second quarter continued in the
third quarter. In North America, demand for machines continued to be weak, with
customer demand being directed mainly at Services segment products.
Machines
In South America, the stable market development continued in the third quarter.
In the EMEA area, uncertain economic development continued and was reflected in
demand for machines. An exception was Eastern Europe, where the Polish and
Russian markets showed strong signs of recovery. In North America, the market
remained subdued, with demand being directed at the solar energy glass segment.
In both the EMEA area and North America, caution among investors lengthened
investment decision times,particularly impacting orders of Heat Treatment
machines. In Asia, growth levelled off during the third quarter.
Measures to improve the profitability of the Machines segment continued. In
January-September, the Machines segment's net sales totalled EUR 63.8 (71.4)
million.
Services
The positive development of the Services segment market continued in the third
quarter. Demand was directed particularly at upgrade products and spare parts.
Compared with the previous year, the Services segment grew in Asia, South
America and North America.
Due to growing sales of upgrade products and spare parts, a higher invoicing
rate for maintenance work, and faster spare parts deliveries, the profitability
of the Services segment improved further. The Services segment's
January-September net sales totalled EUR 23.1 (23.3) million.
Software Solutions
There were no significant changes in the Software Solutions segment's market
during the third quarter. In Europe, the holiday season dampened sales, and
economic uncertainty undermined customers' willingness to invest, so no
significant software investments were made during the third quarter.
Uwe Schmid began work as Senior Vice President, Software Solutions in July,
assuming full responsibility for the Software Solutions segment on 1 September
2011. Under his leadership, organizational changes of the segment have been
launched, with reforms being directed particularly at product development and
sales. Extensive measures to enhance operational efficiency have also been
initiated in the segment.
In January-September, the Software Solutions segment's net sales totalled EUR
17.5 (18.1) million.
Orders received
Glaston's orders received in the review period totalled EUR 101.6 (107.6)
million. Of orders received, the Machines segment accounted for 61%, the
Services segment 23% and the Software Solutions segment 16%. Orders received in
the third quarter totalled EUR 26.8 (38.5) million.
Order book
Glaston's order book on 30 September 2011 was EUR 36.7 (39.7) million. Of the
order book, the Machines segment accounted for EUR 33.1 million, the Services
segment EUR 1.4 million and the Software Solutions segment EUR 2.2 million.
Order book, EUR million 30.9.2011 30.9.2010
---------------------------------------------
Machines 33.1 34.7
---------------------------------------------
Services 1.4 1.9
---------------------------------------------
Software Solutions 2.2 3.0
---------------------------------------------
Total 36.7 39.7
---------------------------------------------
Net sales and result
Net sales for the review period totalled EUR 103.4 (111.8) million. The
Machines segment's net sales in the review period were EUR 63.8 (71.4) million,
the Services segment's net sales EUR 23.1 (23.3) million and the Software
Solutions segment's net sales EUR 17.5 (18.1) million.
Third-quarter net sales were EUR 27.5 (31.9) million and distributed across the
business segments as follows: Machines EUR 16.2 (18.5) million, Services EUR
6.3 (7.8) million and Software Solutions EUR 5.3 (6.1) million. The development
of net sales was particularly affected by customers' unwillingness to invest,
which was reflected most strongly in sales of Heat Treatment machines.
Net sales, EUR million 1-9/2011 1-9/2010 1-12/2010
-------------------------------------------------------
Machines 63.8 71.4 95.0
-------------------------------------------------------
Services 23.1 23.3 32.0
-------------------------------------------------------
Software Solutions 17.5 18.1 23.9
-------------------------------------------------------
Other and internal sales -1.1 -1.0 -1.5
-------------------------------------------------------
Total 103.4 111.8 149.4
-------------------------------------------------------
The operating result excluding non-recurring items was a loss of EUR 2.3 (7.3
loss) million, i.e. -2.2 (-6.6)% of net sales. The adjustment measures taken
were not sufficient to balance weaker sales.
Of the January-September operating result the Machines segment's contribution
was EUR -3.4 (-5.8) million, the Services segment's contribution EUR 4.7 (2.1)
million and the Software Solutions segment's contribution EUR 1.0 (1.4)
million.
The third-quarter operating loss was EUR 2.6 (2.8 loss) million, of which the
Machines segment accounted for EUR -1.7 (-2.6) million, the Services segment
for EUR 0.9 (0.6) million and the Software Solutions segment for EUR -0.3 (0.2)
million.
Operating result, EUR million 1-9/2011 1-9/2010 1-12/2010
------------------------------------------------------------------------------
Machines -3.4 -5.8 -8.5
------------------------------------------------------------------------------
Services 4.7 2.1 3.3
------------------------------------------------------------------------------
Software Solutions 1.0 1.4 1.1
------------------------------------------------------------------------------
Parent, eliminations -4.6 -5.1 -7.1
------------------------------------------------------------------------------
Operating result, excluding non-recurring items -2.3 -7.3 -11.3
------------------------------------------------------------------------------
Non-recurring items 0.2 - -13.7
------------------------------------------------------------------------------
Operating result -2.1 -7.3 -24.9
------------------------------------------------------------------------------
The loss for the review period was EUR 13.3 (13.2 loss) million, and the loss
for the third quarter was EUR 4.6 (5.4 loss) million. Return on capital
employed in January-September was -1.6 (-8.3)% and earnings per share were EUR
-0.13 (-0.16). Earnings per share in July-September were EUR -0.04 (-0.07).
Glaston's net financial expenses in the review period were EUR -9.9 (-5.9)
million. Financial expenses were increased by a EUR 3.4 million expense
recognition arising from additional compensation granted in connection with the
conversion of the convertible bond. This recognition had no impact on equity or
cash flow, however.
Financial position, cash flow and financing
At the end of the review period, the consolidated asset total was EUR 187.9
(215.1) million. The equity attributable to owners of the parent was EUR 54.0
(57.5) million, i.e. EUR 0.51 (0.70) per share. The equity ratio on 30
September 2011 was 31.5 (28.9)%.
Cash flow from operating activities, excluding the change in working capital,
was EUR -8.6 (-11.2) million in the review period. Reasons for the negative
cash flow were among other things financial expenses, such as payment of
interest on convertible bonds, and the settling of provisions recognised in
2010. Working capital developed positively compared with the corresponding
period of the previous year, with the change in working capital being EUR 6.6
(-6.3) million. Cash flow from investments was EUR -3.9 (-2.2) million and cash
flow from financing activities was EUR 8.1 (15.0) million.
Glaston's financing is mainly arranged through a financing package of
approximately EUR 74 million concluded in February. In addition, Glaston has a
convertible bond with a nominal value of EUR 8.8 million, and a EUR 4 million
debenture loan.
Adjustment measures
In the current year, the operational development priorities have been a clear
improvement in business profitability and completing adjustment measures.
During the third quarter, adjustment measures proceeded according to plan. The
restructuring of the Pre-processing product line was completed in July with the
merger of Heat Treatment and Pre-processing production operations in Brazil.
Measures to adjust production capacity to correspond with demand continued in
Finland and Italy during the third quarter. In Finland, a programme to enhance
operational efficiency and improve the profitability of the Heat Treatment
product line was launched at the beginning of September.
Capital expenditure, depreciation and amortisation
Glaston's gross capital expenditure totalled EUR 4.1 (3.2) million. In the
review period, there were no significant individual investments; investments
were mainly directed at development expenditure on new products.
Depreciation and amortisation recognised during the review period totalled EUR
5.9 (5.6) million, and impairment losses on tangible and intangible assets were
EUR 0.0 (0.3) million.
Organisation and personnel
On 30 September 2011, Glaston Corporation had a total of 898 (997) employees.
Of the Group's employees, 17% worked in Finland and 40% elsewhere in Europe,
28% in Asia and 15% in the Americas. The average number of employees was 907
(1,046).
Shares and share prices
Glaston Corporation's paid and registered share capital on 30 September 2011
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 September, 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 on 30 September 2011. 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.
On 30 September 2011, the market capitalisation of the company's shares,
treasury shares excluded, was EUR 67.1 (100.6) million. During the first nine
months of the year, approximately 5.2 million of the company's shares were
traded, representing around 5.3% of the average number of shares. The lowest
price paid for a share was EUR 0.61 and the highest price EUR 1.27. The
volume-weighted average price of shares traded during January-September was EUR
1.03. The closing price on 30 September 2011 was EUR 0.64.
The share-issue adjusted equity per share attributable to owners of the parent
was EUR 0.51 (0.70).
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.
The Board of Directors decided on 28 April 2011 to implement a directed share
issue without payment. In the share issue, a total of 3,092,501 new company
shares were issued without payment. At the end of the review period, the Board
of Directors still has an authorisation to issue 16,907,499 shares. The Board
of Directors has no other authorisations.
Decisions of the Annual General Meeting
Glaston's Annual General Meeting, held on 5 April 2011, confirmed the financial
statements and discharged the President & CEO and the Members of the Board of
Directors from liability for financial year 2010. The Annual General Meeting
approved the proposal of the Board of Directors that no dividend be distributed
for the financial year 2010.
The Annual General Meeting decided that there should be six Members of the
Board of Directors. Claus von Bonsdorff, Carl-Johan Rosenbröijer, Teuvo
Salminen, Christer Sumelius, Andreas Tallberg and Pekka Vauramo were elected as
Members of the Board of Directors.
Public Accountants Ernst & Young Oy were elected as auditor for 2011.
Uncertainties and risks in the near future
Financial uncertainty increased further during the third quarter. Market
instability may lead to the postponement of orders and changes in machine
delivery schedules. Customers' difficulties relating to finance arrangements
may restrict customers' investment opportunities, which might be reflected in
the development of Glaston's final quarter.
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 activity to areas of higher
economic growth will, however, dampen the economic effects of a possibly slower
recovery in Western Europe and in North America.
Glaston performs annual goodwill impairment testing during the final quarter of
the year. Due to the prolonged 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 slowed significantly during the third quarter. Demand in the
rapidly growing Asian market, particularly China, levelled off. Market
conditions in North America and Europe continued to be challenging. Only in the
South American market did stable development continue.
In 2011 the business development priorities have been improving profitability
and completing adjustment measures. The cornerstones of Glaston's operations
remain the architectural glass segment and the solar energy market. Over the
longer term, prospects for the solar energy glass segment are good.
Due to weakened market prospects, the company will robustly continue its
adjustment measures.
Weakened market prospects will impact the development of the final quarter, and
the outlook for Glaston has been revised. We expect 2011 net sales to be at the
2010 level, and the operating result to be a slight loss. (Earlier forecast:
2011 net sales expected to be least at the 2010 level and the operating result
to return to profit.)
Helsinki, 26 October 2011
Glaston Corporation
Board of Directors
For information, please call
CEO&President Arto Metsänen, tel +358 10 500 6100
CFO Tapio Engström, tel +358 10 500 6419
Sender:
Agneta Selroos
Director, Communications and Marketing
Tel. +358 10 500 6105
Glaston Corporation
Glaston Corporation is an international glass technology company and a pioneer
of glass processing technology.Its product range and service network are the
widest 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 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 SEPTEMBER 2011
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 30.9.2011 30.9.2010
31.12.2010
Assets
Non-current assets
Goodwill 52.6 58.4
52.6
Other intangible assets 18.3 18.8
18.8
Property, plant and 18.9 22.1
19.5
equipment
Investments in joint 0.0 0.0
0.0
ventures and associates
Available-for-sale assets 0.3 0.3
0.3
Loan receivables 4.5 4.2
4.5
Deferred tax assets 8.0 9.3
8.9
--------------------------------------------------------------------------------
---------
Total non-current assets 102.6 113.2
104.6
Current assets
Inventories 27.8 36.5
27.9
Receivables
Trade and other receivables 39.5 49.8
43.1
Assets for current tax 1.0 3.4
0.8
--------------------------------------------------------------------------------
---------
Total receivables 40.5 53.2
43.9
Cash equivalents 17.1 12.2
15.7
Assets held for sale - -
2.8
Total current assets 85.4 101.9
90.3
--------------------------------------------------------------------------------
---------
Total assets 187.9 215.1
194.9
================================================================================
=========
30.9.2011 30.9.2010
31.12.2010
Equity and liabilities
Equity
Share capital 12.7 12.7
12.7
Share premium account 25.3 25.3
25.3
Other reserves 0.0 0.0
0.0
Reserve for invested 26.8 0.1
0.1
unrestricted equity
Treasury shares -3.3 -3.3
-3.3
Fair value reserve 0.0 0.0
0.0
Retained earnings and exchange differences 5.7 35.9
36.3
Net result attributable to -13.3 -13.2
-31.9
owners of the parent
--------------------------------------------------------------------------------
---------
Equity attributable to owners 54.0 57.5
39.1
of the parent
Non-controlling interest 0.3 0.3
0.3
--------------------------------------------------------------------------------
---------
Total equity 54.3 57.8
39.5
--------------------------------------------------------------------------------
---------
Non-current liabilities
Convertible bond 7.9 26.0
26.2
Non-current interest-bearing liabilities 42.4 4.2
0.0
Non-current interest-free liabilities and provisions 2.1 5.0
4.3
Deferred tax liabilities 3.9 5.0
4.7
--------------------------------------------------------------------------------
---------
Total non-current liabilities 56.3 40.2
35.2
Current liabilities
Current interest-bearing liabilities 22.0 62.3
61.4
Current provisions 4.9 4.9
7.0
Trade and other payables 50.1 48.3
48.2
Liabilities for current tax 0.5 1.6
0.8
Liabilities related to non-current assets held for sale - -
2.8
Total current liabilities 77.4 117.0
120.2
--------------------------------------------------------------------------------
---------
Total liabilities 133.6 157.2
155.4
--------------------------------------------------------------------------------
---------
Total equity and liabilities 187.9 215.1
194.9
================================================================================
=========
CONDENSED STATEMENT OF PROFIT OR LOSS
EUR million 7-9/
7-9/ 1-9/ 1-9/ 1-12/
2011
2010 2011 2010 2010
Net sales 27.5
31.9 103.4 111.8 149.4
Other operating income 0.3
0.2 0.7 0.5 0.9
Expenses -28.2
-33.0 -100.3 -113.2 -160.3
Share of associates and joint ventures' result 0.0
0.0 0.0 -0.4 -0.4
Depreciation, amortization and impairment -2.1
-2.0 -6.0 -5.9 -14.5
--------------------------------------------------------------------------------
------------------------------
Operating profit / loss -2.5
-2.8 -2.1 -7.3 -24.9
Financial items, net -2.2
-2.9 -9.9 -5.9 -6.9
--------------------------------------------------------------------------------
------------------------------
Result before income taxes -4.8
-5.7 -12.0 -13.3 -31.8
Income taxes 0.2
0.3 -1.3 0.0 -0.2
--------------------------------------------------------------------------------
------------------------------
Profit / loss for the period -4.6
-5.4 -13.3 -13.2 -32.0
--------------------------------------------------------------------------------
------------------------------
Attributable to:
Owners of the parent -4.6
-5.4 -13.3 -13.2 -31.9
Non-controlling interest 0.0
0.0 0.0 0.0 0.0
Total -4.6
-5.4 -13.3 -13.2 -32.0
================================================================================
==============================
Earnings per share, EUR, basic -0.04
-0.07 -0.13 -0.16 -0.39
Earnings per share, EUR, diluted -0.04
-0.07 -0.13 -0.16 -0.39
Operating profit / loss, as % of net sales -9.2
-8.9 -2.1 -6.6 -16.7
Profit / loss for the period, as % of net sales -16.7
-17.0 -12.8 -11.8 -21.4
Non-recurring items included in operating profit / loss 0.0
- 0.2 - -13.7
Operating profit / loss, non-recurring items excluded -2.6
-2.8 -2.3 -7.3 -11.3
Operating profit / loss, non-recurring items excluded, as % of net sales -9.4
-8.9 -2.2 -6.6 -7.5
CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME
7-9/ 7-9/
1-9/ 1-9/ 1-12/
2011 2010
2011 2010 2010
Profit / loss for the period -4.6 -5.4
-13.3 -13.2 -32.0
Other comprehensive income
Total exchange differences on translating foreign operations 0.8 -1.1
0.1 0.7 1.0
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 period, net of tax 0.8 -1.0
0.1 0.7 1.0
--------------------------------------------------------------------------------
----------------
Total comprehensive income for the reporting period -3.8 -6.5
-13.2 -12.5 -30.9
--------------------------------------------------------------------------------
----------------
Attributable to
Owners of the parent -3.8 -6.4
-13.2 -12.5 -30.9
Non-controlling interest 0.0 -0.1
0.0 0.0 0.0
Total comprehensive income for the reporting period -3.8 -6.5
-13.2 -12.5 -30.9
--------------------------------------------------------------------------------
----------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 1-9/2011 1-9/2010
1-12/2010
Cash flows from operating activities
Cash flow before change in net working capital -8.6 -11.2
-13.7
Change in net working capital 6.6 -6.3
2.7
--------------------------------------------------------------------------------
----
Net cash flow from operating activities -2.0 -17.5
-11.0
Cash flow from investing activities
Business combinations 0.0 0.0
0.0
Other purchases of non-current assets -4.1 -3.0
-4.4
Investment in joint ventures - -0.2
-0.2
Proceeds from sale of joint ventures - 0.4
0.4
Proceeds from sale of other non-current assets 0.2 0.6
0.7
--------------------------------------------------------------------------------
----
Net cash flow from investing activities -3.9 -2.2
-3.5
--------------------------------------------------------------------------------
----
Cash flow before financing -6.0 -19.7
-14.5
Cash flow from financing activities
Share issue and conversion of convertible bond, net 5.8 -
-
Increase in non-current liabilities 47.8 6.2
6.2
Decrease in non-current liabilities -1.9 -0.6
-1.2
Changes in loan receivables (increase - / decrease +) 0.0 -
-0.1
Increase in short-term liabilities 21.4 30.2
50.1
Decrease in short-term liabilities -65.1 -22.1
-44.5
Other financing 0.0 1.4
1.4
--------------------------------------------------------------------------------
----
Net cash flow from financing activities 8.1 15.0
11.9
--------------------------------------------------------------------------------
----
Effect of exchange rate changes -0.7 1.3
2.7
Net change in cash and cash equivalents 1.4 -3.4
0.1
================================================================================
====
Cash and cash equivalents at the beginning of period 15.7 15.6
15.6
Cash and cash equivalents at the end of period 17.1 12.2
15.7
--------------------------------------------------------------------------------
----
Net change in cash and cash equivalents 1.4 -3.4
0.1
================================================================================
====
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million Share capital Share
premium account Other reserves Reserve for inv. unrestr. equity Treasury
shares Fair value reserve
--------------------------------------------------------------------------------
--------------------------------------------
Equity at 12.7
25.3 0.0 0.2 -3.5
0.0
1 January, 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
-------------------
Total comprehensive income for the period -
- - - -
0.0
Disposal of treasury shares -
- - -0.1 0.2
-
Tax effect of net income recognized directly in equity -
- - 0.0 -
-
Equity at 12.7
25.3 0.0 0.1 -3.3
0.0
30 September, 2010
================================================================================
================================================================================
===================
EUR million Share capital Share
premium account Other reserves Reserve for inv. unrest. equity Treasury
shares Fair value reserve
--------------------------------------------------------------------------------
--------------------------------------------
Equity at 12.7
25.3 0.0 0.1 -3.3
0.0
1 January, 2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
-------------------
Total comprehensive income for the period -
- 0.0 - -
0.0
Share issue -
- - 5.9 -
-
Conversion of convertible bond -
- - 20.8 -
-
Equity at 12.7
25.3 0.0 26.8 -3.3
0.0
30 September, 2011
================================================================================
================================================================================
===================
EUR million
Retained earnings Exchange differences Equity attr. to owners of the
parent Non-contr. interest Total equity
--------------------------------------------------------------------------------
---------------------------------
Equity at
35.6 -1.3
69.0 0.3 69.4
1 January, 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
------------------------------------
Total comprehensive income for the period
-13.2 0.7
-12.5 0.0 -12.5
Disposal of treasury shares
- -
0.1 - 0.1
Tax effect of net income recognized directly in equity
- -
0.0 - 0.0
Share-based incentive plan
0.1 -
0.1 - 0.1
Share-based incentive plan, tax effect
0.0 -
0.0 - 0.0
Equity part of convertible bond
0.8 -
0.8 - 0.8
Equity at
23.3 -0.6
57.5 0.3 57.8
30 September, 2010
================================================================================
================================================================================
====================================
EUR million
Retained earnings Exchange differences Equity attr. to owners of the
parent Non-contr. interest Total equity
--------------------------------------------------------------------------------
---------------------------------
Equity at
4.6 -0.3
0.3 39.5
1 January, 2011
--------------------------------------------------------------------------------
--------------------------------------------
----------------------------------
Total comprehensive income for the period
-12.8 -0.4
-13.2 0.0 -13.2
Share-based incentive plan
0.3 -
0.3 - 0.3
Share-based incentive plan, tax effect
-0.1 -
-0.1 - -0.1
Share issue
- -
5.9 - 5.9
Conversion of convertible bond
-2.3 -
18.5 - 18.5
Cost effect of the share price compensation related to convertible bond
conversion 3.4 -
3.4 - 3.4
Equity at
-6.9 -0.6
54.0 0.3 54.3
30 September, 2011
================================================================================
================================================================================
====================================
KEY RATIOS
30.9.2011 30.9.2010
31.12.2010 EBITDA, as % of net sales (1 3.7 -1.2
-6.9
Operating profit / loss (EBIT), as % of net sales -2.1 -6.6
-16.7
Net result, as % of net sales -12.8 -11.8
-21.4
Gross capital expenditure, EUR million 4.1 3.2
4.6
Gross capital expenditure, as % of net sales 4.0 2.8
3.1
Equity ratio, % 31.5 28.9
22.1
Gearing, % 133.0 159.8
228.6
Net gearing, % 101.4 138.7
189.0
Net interest-bearing debt, EUR million 55.1 80.2
74.6
Capital employed, end of period, EUR million 126.5 150.2
129.7
Return on equity, %, annualized -37.7 -27.7
-58.7
Return on capital employed, %, annualized -1.6 -8.3
-19.0
Number of personnel, average 907 1,046
1,028
Number of personnel, end of period 898 997
957
(1 EBITDA = Operating profit / loss + depreciation, amortization and impairment.
PER SHARE DATA
30.9.2011 30.9.2010 31.12.2010
Number of registered shares, end of period, treasury shares excluded (1,000)
104,800 78,561 78,561
Number of shares issued, end of period, adjusted with share issue, treasury
shares excluded (1,000)
104,800 82,179 82,179
Number of shares, average, adjusted with share issue, treasury shares excluded
(1,000)
99,486 82,133 82,145
Number of shares, dilution effect of the convertible bond taken into account,
average, adjusted with share issue, treasury shares excluded (1,000) ('
110,203 104,389 104,646
EPS, basic, adjusted with share issue, EUR
-0.13 -0.16 -0.39
EPS, diluted, adjjusted with share issue, EUR
-0.13 -0.16 -0.39
Adjusted equity attributable to owners of the parent per share, EUR
0.51 0.70 0.48
Price per adjusted earnings per share (P/E) ratio
-4.8 -8.0 -2.9
Price per adjusted equity attributable to owners of the parent per share
1.24 1.83 2.37
Market capitalization of registered shares, EUR million
67.1 100.6 88.8
Share turnover, % (number of shares traded, % of the average registered number
of shares)
5.3 11.7 19.6
Number of shares traded, (1,000)
5166 9175 15419
Closing price of the share, EUR
0.64 1.28 1.13
Highest quoted price, EUR
1.27 1.65 1.65
Lowest quoted price, EUR
0.61 1.05 0.80
Volume-weighted average quoted price, EUR
1.03 1.28 1.17
DEFINITIONS OF KEY RATIOS
Definitions of key ratios are presented in 2010 financial statements as well as
in January - March 2011 interim report.
ACCOUNTING POLICIES 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, 2010, with the
exception of certain new or revised or amended standards and interpretations
which have been applied from 1 January, 2011. These amended standards and
interpretations are presented in 2010 financial statements as well as in
January - March 2011 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
processors' integrated line solutions.
The unallocated operating result consists of head office operations of the
Group and in 2010 also unallocated share of joint venture's result.
Machines
EUR million 7-9/ 7-9/ 1-9/
1-9/ 1-12/
2011 2010 2011
2010 2010
--------------------------------------------------------------------------------
----------
External sales 16.2 18.5 63.7
71.4 94.9
Intersegment sales 0.0 0.0 0.2
0.0 0.1
--------------------------------------------------------------------------------
----------
Net sales 16.2 18.5 63.8
71.4 95.0
EBIT excluding non-recurring items -1.7 -2.6 -3.4
-5.8 -8.5
--------------------------------------------------------------------------------
----------
EBIT-%, excl. non-recurring items -10.5 -14.0 -5.3
-8.1 -8.9
Non-recurring items - - -
- -12.0
--------------------------------------------------------------------------------
----------
EBIT -1.7 -2.6 -3.4
-5.8 -20.4
EBIT-% -10.5 -14.0 -5.3
-8.1 -21.5
Net working capital 16.5
35.5 24.2
--------------------------------------------------------------------------------
----------
Number of personnel, average 561
626 616
Number of personnel, end of period 561
600 577
--------------------------------------------------------------------------------
----------
Services
EUR million 7-9/ 7-9/ 1-9/
1-9/ 1-12/
2011 2010 2011
2010 2010
--------------------------------------------------------------------------------
----------
External sales 6.1 7.3 22.3
22.4 30.7
Intersegment sales 0.2 0.4 0.9
0.9 1.4
--------------------------------------------------------------------------------
----------
Net sales 6.3 7.8 23.1
23.3 32.0
EBIT excluding non-recurring items 0.9 0.6 4.7
2.1 3.3
--------------------------------------------------------------------------------
----------
EBIT-%, excl. non-recurring items 14.0 7.8 20.3
8.9 10.1
Non-recurring items 0.0 - 0.1
- -2.2
--------------------------------------------------------------------------------
----------
EBIT 0.9 0.6 4.8
2.1 1.1
EBIT-% 14.8 7.8 20.8
8.9 3.4
Net working capital 8.3
8.0 6.9
--------------------------------------------------------------------------------
----------
Number of personnel, average 131
176 171
Number of personnel, end of period 120
163 149
--------------------------------------------------------------------------------
----------
Software Solutions
EUR million 7-9/ 7-9/ 1-9/
1-9/ 1-12/
2011 2010 2011
2010 2010
--------------------------------------------------------------------------------
----------
External sales 5.3 6.0 17.4
18.1 23.9
Intersegment sales 0.0 0.1 0.1
0.1 0.0
--------------------------------------------------------------------------------
----------
Net sales 5.3 6.1 17.5
18.1 23.9
Share of associates' and joint ventures' results 0.0 0.0 0.0
0.0 0.0
EBIT excluding non-recurring items -0.3 0.2 1.0
1.4 1.1
--------------------------------------------------------------------------------
----------
EBIT-%, excl. non-recurring items -6.3 4.0 5.6
7.8 4.5
Non-recurring items 0.0 - 0.0
- 0.5
--------------------------------------------------------------------------------
----------
EBIT -0.3 0.2 1.0
1.4 1.5
EBIT-% -6.3 4.0 5.9
7.8 6.4
Net working capital 4.8
6.9 4.5
--------------------------------------------------------------------------------
----------
Number of personnel, average 202
220 219
Number of personnel, end of period 205 215 214
--------------------------------------------------------------------------------
----------
Glaston Group
EUR million
Net sales 7-9/ 7-9/ 1-9/
1-9/ 1-12/
2011 2010 2011
2010 2010
--------------------------------------------------------------------------------
----------
Machines 16.2 18.5 63.8
71.4 95.0
Services 6.3 7.8 23.1
23.3 32.0
Software Solutions 5.3 6.1 17.5
18.1 23.9
Other and intersegment sales -0.2 -0.5 -1.1
-1.0 -1.5
Glaston Group total 27.5 31.9 103.4
111.8 149.4
--------------------------------------------------------------------------------
----------
EBIT 7-9/ 7-9/ 1-9/
1-9/ 1-12/
2011 2010 2011
2010 2010
--------------------------------------------------------------------------------
----------
Machines -1.7 -2.6 -3.4
-5.8 -8.5
Services 0.9 0.6 4.7
2.1 3.3
Software Solutions -0.3 0.2 1.0
1.4 1.1
Other and eliminations -1.4 -1.1 -4.6
-5.1 -7.1
EBIT excluding non-recurring items -2.6 -2.8 -2.3
-7.3 -11.3
--------------------------------------------------------------------------------
----------
Non-recurring items 0.0 - 0.2
- -13.7
EBIT -2.5 -2.8 -2.1
-7.3 -24.9
--------------------------------------------------------------------------------
----------
Net financial items -2.2 -2.9 -9.9
-5.9 -6.9
--------------------------------------------------------------------------------
----------
Result before income taxes and non-controlling interest -4.8 -5.7 -12.0
-13.3 -31.8
Income taxes 0.2 0.3 -1.3
0.0 -0.2
Result -4.6 -5.4 -13.3
-13.2 -32.0
--------------------------------------------------------------------------------
----------
Number of personnel, average 907
1,046 1,028
Number of personnel, end of period 898
997 957
--------------------------------------------------------------------------------
----------
Segment assets 30.09.2011 30.09.2010 31.12.2010
-------------------------------------------------------------
Machines 39.9 57.9 46.5
Services 11.1 11.1 10.1
Software Solutions 5.6 7.2 5.2
Other 0.1 0.0 0.0
Total segment assets 56.7 76.2 61.8
-------------------------------------------------------------
Other assets 131.3 138.9 133.1
Total assets 187.9 215.1 194.9
-------------------------------------------------------------
Segment liabilities 30.09.2011 30.09.2010 31.12.2010
-------------------------------------------------------------
Machines 23.4 22.3 22.3
Services 2.7 3.1 3.2
Software Solutions 0.8 0.3 0.7
Other 0.5 0.3 0.3
Total segment liabilities 27.4 26.1 26.5
-------------------------------------------------------------
Other liabilities 106.2 131.2 129.0
Total liabilities 133.6 157.2 155.4
-------------------------------------------------------------
Net working capital 30.09.2011 30.09.2010 31.12.2010
-------------------------------------------------------------
Machines 16.5 35.5 24.2
Services 8.3 8.0 6.9
Software Solutions 4.8 6.9 4.5
Other -0.4 -0.3 -0.2
Total Glaston Group 29.3 50.1 35.4
-------------------------------------------------------------
In segment reporting net working capital consists of inventory, external trade
receivables and trade payables and advances received.
Order intake and order book of Software Solutions has been restated.
Order intake
EUR million 1-9/2011 1-9/2010 1-12/2010
--------------------------------------------------
Machines 62.3 69.3 96.2
Services 23.3 21.8 29.8
Software Solutions 16.1 16.5 21.7
Total Glaston Group 101.6 107.6 147.7
--------------------------------------------------
Net sales by geographical areas
EUR million 1-9/2011 1-9/2010 1-12/2010
--------------------------------------------------------------
EMEA 45.5 59.5 75.3
Asia 28.2 24.0 35.2
America 29.6 28.3 39.0
Total 103.4 111.8 149.4
--------------------------------------------------------------
QUARTERLY NET SALES, OPERATING RESULT, ORDER INTAKE AND ORDER BOOK
Machines
EUR million 7-9/ 4-6/ 1-3/ 10-12/
7-9/ 4-6/ 1-3/
2011 2011 2011 2010
2010 2010 2010
--------------------------------------------------------------------------------
--------------
External sales 16.2 27.4 20.1 23.5
18.5 28.5 24.3
Intersegment sales 0.0 0.2 0.0 0.1
0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------
Net sales 16.2 27.6 20.1 23.6
18.5 28.5 24.3
EBIT excluding non-recurring items -1.7 0.2 -1.9 -2.7
-2.6 -1.7 -1.5
--------------------------------------------------------------------------------
--------------
EBIT-%, excl. non-recurring items -10.5 0.6 -9.2 -11.5
-14.0 -5.9 -6.1
Non-recurring items - - - -12.0
- - -
-------------------------------------------------
EBIT -1.7 0.2 -1.9 -14.7
-2.6 -1.7 -1.5
--------------------------------------------------------------------------------
--------------
EBIT-% -10.5 0.6 -9.2 -62.1
-14.0 -5.9 -6.1
--------------------------------------------------------------------------------
--------------
Services
EUR million 7-9/ 4-6/ 1-3/ 10-12/
7-9/ 4-6/ 1-3/
2011 2011 2011 2010
2010 2010 2010
--------------------------------------------------------------------------------
--------------
External sales 6.1 8.1 8.1 8.3
7.3 7.0 8.0
Intersegment sales 0.2 0.4 0.2 0.5
0.4 0.2 0.2
--------------------------------------------------------------------------------
--------------
Net sales 6.3 8.5 8.3 8.8
7.8 7.3 8.2
EBIT excluding non-recurring items 0.9 2.3 1.5 1.2
0.6 0.5 1.0
--------------------------------------------------------------------------------
--------------
EBIT-%, excl. non-recurring items 14.0 26.8 18.4 13.3
7.8 6.6 12.1
Non-recurring items 0.0 0.1 - -2.2
- - -
-------------------------------------------------
EBIT 0.9 2.3 1.5 -1.0
0.6 0.5 1.0
--------------------------------------------------------------------------------
--------------
EBIT-% 14.8 27.5 18.4 -11.3
7.8 6.6 12.1
--------------------------------------------------------------------------------
--------------
Software Solutions
EUR million 7-9/ 4-6/ 1-3/ 10-12/
7-9/ 4-6/ 1-3/
2011 2011 2011 2010
2010 2010 2010
--------------------------------------------------------------------------------
--------------
External sales 5.3 6.1 6.0 5.8
6.0 6.0 6.0
Intersegment sales 0.0 0.0 0.0 -0.1
0.1 0.0 0.0
--------------------------------------------------------------------------------
--------------
Net sales 5.3 6.2 6.0 5.8
6.1 6.0 6.1
Share of associates' and joint ventures' results 0.0 - - -
0.0 - -
EBIT excluding non-recurring items -0.3 0.3 1.0 -0.3
0.2 0.5 0.7
--------------------------------------------------------------------------------
--------------
EBIT-%, excl. non-recurring items -6.3 5.3 16.4 -5.9
4.0 7.8 11.7
Non-recurring items 0.0 0.0 - 0.5
- - -
-------------------------------------------------
EBIT -0.3 0.4 1.0 0.1
0.2 0.5 0.7
--------------------------------------------------------------------------------
--------------
EBIT-% -6.3 6.0 16.4 2.2
4.0 7.8 11.7
--------------------------------------------------------------------------------
--------------
Net sales
EUR million 7-9/ 4-6/ 1-3/ 10-12/
7-9/ 4-6/ 1-3/
2011 2011 2011 2010
2010 2010 2010
--------------------------------------------------------------------------------
--------------
Machines 16.2 27.6 20.1 23.6
18.5 28.5 24.3
Services 6.3 8.5 8.3 8.8
7.8 7.3 8.2
Software Solutions 5.3 6.2 6.0 5.8
6.1 6.0 6.1
Other and intersegment sales -0.2 -0.6 -0.2 -0.5
-0.5 -0.2 -0.2
Glaston Group total 27.5 41.6 34.2 37.7
31.9 41.5 38.4
--------------------------------------------------------------------------------
--------------
EBIT
EUR million 7-9/ 4-6/ 1-3/ 10-12/
7-9/ 4-6/ 1-3/
2011 2011 2011 2010
2010 2010 2010
--------------------------------------------------------------------------------
--------------
Machines -1.7 0.2 -1.9 -2.7
-2.6 -1.7 -1.5
Services 0.9 2.3 1.5 1.2
0.6 0.5 1.0
Software Solutions -0.3 0.3 1.0 -0.3
0.2 0.5 0.7
Other and eliminations -1.4 -1.6 -1.6 -2.1
-1.1 -2.1 -1.9
EBIT excluding non-recurring items -2.6 1.2 -0.9 -3.9
-2.8 -2.8 -1.7
--------------------------------------------------------------------------------
--------------
Non-recurring items 0.0 0.1 - -13.7
- - -
---------------------------------------------
EBIT -2.5 1.3 -0.9 -17.6
-2.8 -2.8 -1.7
--------------------------------------------------------------------------------
--------------
Order intake
EUR million 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2011 2011 2011 2010 2010 2010 2010
---------------------------------------------------------------
Machines 15.2 23.1 24.0 26.8 25.3 23.8 20.3
Services 6.7 8.0 8.7 8.0 7.7 7.4 6.7
Software Solutions 5.0 5.7 5.4 5.3 5.5 5.7 5.2
Total Glaston Group 26.8 36.7 38.1 40.1 38.5 36.9 32.2
---------------------------------------------------------------
Order book 30.9. 30.6. 31.3. 31.12. 30.9. 30.6. 31.3.
2011 2011 2011 2010 2010 2010 2010
---------------------------------------------------------------------
Machines 33.1 35.4 40.2 37.4 34.7 25.6 32.4
Services 1.4 1.1 1.7 1.2 1.9 0.9 0.7
Software Solutions 2.2 2.2 2.5 2.9 3.0 3.2 3.1
--------------------
Total Glaston Group 36.7 38.7 44.3 41.5 39.7 29.8 36.2
---------------------------------------------------------------------
CONTINGENT LIABILITIES
EUR million 30.9.2011 30.9.2010 31.12.2010
Mortgages and pledges
On own behalf 523.5 158.1 274.6
On behalf of others 0.2 - 0.1
Guarantees
On own behalf 0,4 0,8 0,7
On behalf of others 0,0 0,1 0,2
Lease obligations 10,1 12,0 10,7
Repurchase obligations - 0,2 0,2
Other obligation on own behalf 0,0 0,0 0,0
Pledged assets include EUR 125.0 million shares in group companies and EUR 59.0
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 30.9.2011 30.9.2010
31.12.2010
Nominal value Fair value Nominal value Fair value
Nominal value Fair value
Currency derivatives
Currency forwards - - 2.6 0.1
0.4 0.1
Commodity derivatives
Electricity forwards 0.2 0.1 0.6 0.1
0.3 0.2
Derivative instruments are used only for hedging purposes. Nominal values 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 1-9/2011 1-9/2010
1-12/2010
Carrying amount at beginning of the period 19.5 24.7
24.7
--------------------------------------------------------------------------------
---
Additions 0.9 0.5
0.9
Disposals -0.2 -0.4
-0.4
Depreciation and amortization -1.9 -2.6
-3.4
Impairment losses and reversals of impairment losses 0.0 -0.2
-1.2
Reclassification and other changes 0.6 -0.3
-1.5
Exchange differences 0.0 0.4
0.5
Carrying amount at end of the period 18.9 22.1
19.5
--------------------------------------------------------------------------------
---
At the end of September 2011 Glaston had EUR 0.0 (-) million of contractual
commitments for the acquisition of property, plant and equipment.
SHAREHOLDER INFORMATION
Largest shareholders 30 September, 2011
% of shares
Shares and votes
1 GWS Trade Oy 13,446,700 12.7
2 Oy G.W.Sohlberg Ab 12,819,400 12.1
3 Varma Mutual Pension Insurance Company 9,447,320 8.9
4 Suomen Teollisuussijoitus Oy 9,049,255 8.6
5 Fondita Nordic Micro Cap Investment Fund 2,350,000 2.2
6 Sumelius Bjarne Henning 2,112,936 2.0
7 Sumelius-Fogelholm Birgitta Christina 1,850,000 1.8
8 Oy Investsum Ab 1,820,000 1.7
9 Sumelius Bertil Christer 1,803,800 1.7
10 Von Christierson Charlie 1,600,000 1.5
11 Sumelius-Koljonen Barbro 1,175,238 1.1
12 The Finnish Cultural Foundation 1,084,760 1.0
13 Juola Soile Johanna 1,041,375 1.0
14 Ehrnrooth Helene Margareta 1,000,000 0.9
15 Oy Cacava Ab 1,000,000 0.9
16 Nordea Pro Finland Fund 1,000,000 0.9
17 Suutarinen Heidi Maria 964,800 0.9
18 Suutarinen Tero Markus 862,000 0.8
19 Nordea Life Assurance Finland Ltd. 825,000 0.8
20 Huber Karin 800,800 0.8
-------------------------------------------------------------------
20 largest shareholders total 66,053,384 62.6
Other shareholders 38,977,702 36.9
Nominee registered 557,550 0.5
-------------------------------------------------------------------
Total 105,588,636 100.0
Treasury shares -788,582
-------------------------------------------------------------------
104,800,054
-------------------------------------------------------------------
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. Glaston follows the same commercial terms in transactions with
associates and joint ventures and other related parties as with third parties.
During the review period Glaston's related party transactions included leasing
of premises to a joint venture. In addition, the Group has leased premises from
companies owned by individuals belonging to the management. The lease payments
were in January - September EUR 0.5 (0.5) million. During the review period
there were no related party transactions whose terms would differ from the
terms in transactions with third parties.
Transactions with joint ventures and associates during the reporting period
In 2011 Glaston did not have any joint ventures.
Receivables from the associate were EUR 0.0 (-) million.
Transactions with joint ventures
EUR million 1-9/2011 1-9/2010 1-12/2010
Other operating income from joint ventures - 0,1 0,1
Interest income from joint ventures - 0,1 0,1
Other financial expenses - -3,3 -3,3
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