2015-10-26 12:00:00 CET
2015-10-26 12:00:03 CET
REGULATED INFORMATION
Glaston Oyj Abp - Interim report (Q1 and Q3)
GLASTON’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2015: NET SALES GREW, PROFITABILITY IMPROVED
Helsinki, Finland, 2015-10-26 12:00 CET (GLOBE NEWSWIRE) -- Glaston Corporation
INTERIM REPORT 26 October 2015 at 13.00 (EET)
GLASTON'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2015: Net sales grew,
profitability improved
This release is a summary of Glaston Corporation's Interim Report for
January-September 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.
CHANGE IN REPORTING
In the second quarter, Glaston sold 100% of the shares of Glaston Italy S.p.A.,
which specialised in pre-processing operations. As a result, Glaston reassessed
its reporting segments and, as of 1 July 2015, combined the operating segments
into a single reporting segment. This interim report has been prepared in
accordance with the new segment structure.
As of the second quarter of 2015, pre-processing machines business has been
classified in Discontinued Operations. Comments in the text refer only to
Continuing Operations. Income statement comparison figures have been restated.
JULY-SEPTEMBER 2015
-- Orders received totalled EUR 28.2 (32.1) million.
-- Net sales totalled EUR 34.3 (21.9) million.
-- The comparable operating profit, excluding non-recurring items, was EUR 2.5
(1.1) million.1)
-- The comparable operating profit was EUR 2.4 (1.1) million, i.e. 7.0% (5.1%)
of net sales.1)
JANUARY-SEPTEMBER 2015
-- Orders received totalled EUR 83.2 (81.6) million.
-- The order book on 30 September 2015 was EUR 47.8 (41.7) million.
-- Net sales totalled EUR 90.8 (73.1) million.
-- The comparable EBITDA was EUR 7.8 (4.8) million, i.e. 8.6 (6.6)% of net
sales.1)
-- The comparable operating profit, excluding non-recurring items, was EUR 5.5
(2.6) million.1)
-- The comparable operating profit was EUR 5.2 (1.9) million, i.e. 5.7% (2.6%)
of net sales.1)
-- Continuing Operations' return on capital employed (ROCE) was 18.6 (12.9)%.
-- Continuing Operations' earnings per share were EUR 0.01 (0.03).
-- Interest-bearing net liabilities amounted to EUR 5.2 (9.5) million.
1) Due to the sale of the pre-processing machines business, internal purchases
eliminated in the comparison figures up to 30 June 2015 change from 1 July 2015
to external purchases. This impacts the comparability of Continuing Operations'
operating profit. In Continuing Operations' comparable operating profit, those
internal items that in future will be external items have been restated.
PRESIDENT & CEO ARTO METSÄNEN:
“The third quarter was good in terms of net sales growth. Compared with the
corresponding period of the previous year, net sales grew by 57% to EUR 34.3
million. Both the Machines business and the Services business increased their
net sales. Growth was mainly in North America, where net sales increased by 60%
compared with July-September 2014, and in the EMEA, where net sales grew by
25%. The Asian market, too, showed signs of recovery. Our profitability
improved, and the comparable operating profit, excluding non-recurring items,
was EUR 2.5 million. Profitability was improved by increased net sales,
although fixed costs relating to pre-processing business will adversely affect
the year-end result. In respect of these, corrective measures are under way.
The positive mood that prevailed in the EMEA area deteriorated during the
summer. This was reflected in third-quarter orders received, which totalled EUR
28.2 (32.1) million. The order book on 30 September, however, was better than
the previous year, EUR 47.8 (41.7) million. We expect order flow to increase
slightly during the latter part of the year.
In the third quarter, we initiated measures in South America and Asia to
restructure our operations in accordance with the company's structure and the
prevailing market situation. With these measures, we are seeking significant
annual savings of fixed costs.”
GLASTON'S OUTLOOK FOR 2015 UNCHANGED
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).
KEY FIGURES
restat restat restat
ed ed ed
7-9/20 7-9/20 1-9/20 1-9/20 2014
15 14 15 14
Order book, EUR million 47.8 41.7 47.8 41.7 56.0
Orders received, EUR million 28.2 32.1 83.2 81.6 133.6
Net sales, EUR million 34.3 21.9 90.8 73.1 109.7
EBITDA, comparable, EUR million 3.3 2.0 7.8 4.8 8.6
EBITDA, comparable, % net sales 9.5 9.3 8.6 6.6 7.8
EBIT, comparable, EUR million 2.4 1.1 5.2 1.9 4.9
EBIT, comparable, % net sales 7.0 5.1 5.7 2.6 4.5
Profit/loss for the period, EUR million -1.3 -0.1 -12.4 0.5 1.1
Earnings per share, Continuing and -0.01 -0.00 -0.06 0.00 0.01
Discontinued Operations, EUR
Cash flow from operations, EUR million 2.0 2.0 -3.6 0.7 16.6
Return on capital employed, %, -12.4 4.8 -12.4 4.8 7.9
annualised
Gross capital expenditure, Continuing 0.8 1.1 3.7 2.1 3.6
and Discontinued Operations, EUR
million
Equity ratio, % 45.3 47.2 45.3 47.2 47.7
Gearing, % 38.2 42.5 38.2 42.5 29.6
OPERATING ENVIRONMENT
In the third quarter of 2015, Glaston's markets continued to develop
positively. In the North American and EMEA area markets, growth continued. In
Asia, the machines market showed signs of recovery. In South America, the
market remained subdued.
Machines
In the third quarter, the market situation remained favourable in North America
and the EMEA area. The positive development of the North American market was
intensified by construction, as glass processors prepared for additional
investments. In the EMEA area, market development was stable.
In Asia, the market showed signs of picking up, although the recovery has been
at a slower pace than expected. In the third quarter, Glaston received a
significant order, when a customer in China ordered two Glaston CCS1000™ glass
tempering furnaces. In total, the deal is worth approximately EUR 2.4 million.
In the Pacific area, the market developed in a more positive direction, and in
the summer Glaston received machine orders from both Australia and New Zealand.
In South America, the market remained weak. Of the area's largest markets, the
unstable economic situation in Brazil in particular slowed customers'
decision-making.
In the heat treatment machines segment, Glaston maintained its strong market
position.
Services
The services market developed favourably during the third quarter. All product
groups, excluding tools, developed positively, and Glaston's market position
remained strong.
In modernisation and refurbishment products, the third quarter was very good.
Glaston received a significant modernisation order worth approximately EUR 1
million from an automotive glass manufacturer in Spain. Large modernisation and
refurbishment deals were also closed for New Zealand, the United Arab Emirates,
Israel, Germany, Portugal, the USA and Colombia.
In the third quarter, sales of heat treatment machine spare parts continued to
be good. The number of service work orders also grew. With regard to tools,
competition continued to be aggressive, and market situation was challenging.
OUTLOOK UNCHANGED
We continue to expect that Glaston's markets will grow moderately in 2015. In
sales of new machines, we expect good development to continue in the EMEA area
and in North America. Economic uncertainty in the EMEA area as well as its
local political tensions might, however, reduce customers' willingness to
invest.
The very subdued Asian market showed signs of recovery in July-September and we
expect the favourable development to continue in the latter part of the year.
We expect demand in the South American market to remain subdued in the fourth
quarter. In the services market, we expect growth to continue in all product
groups and particularly in upgrades.
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).
PRESS MEETING
An analyst and press conference is organized at Glaston's office on
Yliopistonkatu 7, Helsinki, on 26 October 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
Communications Director
tel. +358 10 500 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 the NASDAQ OMX Helsinki Ltd. in Finland. For more information, please
visit: www.glaston.net
Distribution: OMX, key media, www.glaston.net
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