Glaston Oyj Abp - Financial Statement Release

GLASTON’S FINANCIAL STATEMENT BULLETIN 1 January – 31 December 2015: Net sales grew 12%, comparable operating profit improved

Helsinki, Finland, 2016-02-11 12:00 CET (GLOBE NEWSWIRE) -- GLASTON CORPORATION
         FINANCIAL STATEMENT RELEASE 11.2.2016  AT 13.00 



GLASTON’S FINANCIAL STATEMENT BULLETIN 1 January – 31 December 2015: Net sales
grew 12%, comparable operating profit improved 

This release is a summary of Glaston Corporation's financial statements
bulletin 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. 


OCTOBER-DECEMBER 2015

  -- Orders received totalled EUR 24.2 (52.0) million.
  -- Net sales totalled EUR 32.6 (36.6) million.
  -- The comparable operating profit, excluding non-recurring items, was EUR 0.6
     (3.0) million.1)
  -- The comparable operating profit was EUR -0.7 (3.0) million, i.e. -2.2
     (8.1)% of net sales.1)



JANUARY-DECEMBER 2015

  -- Orders received totalled EUR 107.4 (133.6) million.
  -- The order book on 31 December 2015 was EUR 38.5 (56.0) million.
  -- Net sales totalled EUR 123.4 (109.7) million.
  -- The comparable EBITDA, excluding non-recurring items, was EUR 9.5 (9.2)
     million, i.e. 7.7 (8.4)% of net sales.1)
  -- The comparable operating profit, excluding non-recurring items, was EUR 6.1
     (5.5) million.1)
  -- The comparable operating profit was EUR 4.5 (4.9) million, i.e. 3.6 (4.5)%
     of net sales.1)
  -- Continuing Operations’ return on capital employed (ROCE) was 10.0 (17.2)%.
  -- Continuing Operations’ earnings per share were EUR 0.00 (0.04).
  -- Interest-bearing net liabilities amounted to EUR 7.4 (-5.0) million.
  -- The Board of Directors proposes to the Annual General Meeting a return of
     capital of EUR 0.01 per share.


1) Due to the sale of the pre-processing machines business, internal purchases
eliminated in the comparison figures up to 30 June 2015 changed 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. 

GLASTON’S OUTLOOK FOR 2016
We expect 2016 net sales to be slightly below the 2015 level and that operating
profit, excluding non-recurring items, will be at the 2015 level.(In 2015 net
sales were EUR 123.4 million and comparable operating profit, excluding
non-recurring items, was EUR 6.1 million). 

CHANGE IN REPORTING
In the second quarter of 2015, 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. 

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. 


PRESIDENT & CEO ARTO METSÄNEN:
“We started 2015 with a record high order book and this had a positive impact
throughout the year.Our net sales grew by 12% compared with the previous year
and totalled EUR 123.4 million.The Machines and Services business areas both
increased their net sales, with growth strongly weighted towards North
America.The comparable operating profit, excluding non-recurring items,
improved compared with the previous year and was EUR 6.1 million. 

In the final quarter of the year, demand continued at a good level in North
America.In the EMEA area, the market slowed and for the Machines business, the
market situation became challenging.Our order book was weaker than the previous
year and was EUR 38.5 million, whereas the figure for the previous year was
record high (EUR 56.0 million.). 

The single most significant event for Glaston during 2015 was the disposal of
pre-processing operations. The sales decision was influenced particularly by
the fact that the profitability of the pre-processing operations did not
correspond with our objectives and developing the operations in question to the
target level would have demanded significant investment. 

As a result of the sale of the pre-processing machines business, our structure
has been streamlined:we now focus on high technology heat treatment and
services.In our view, the growth prospects in these product groups are good.” 







                                                                        restated
KEY FIGURES                                               31.12.2015  31.12.2014
                                                                                
Order book, EUR million                                         38.5        56.0
Orders, received, EUR million                                  107.4       133.6
Net sales, EUR million                                         123.4       109.7
EBITDA, comparable, EUR million                                  7.9         8.6
EBITDA, comparable, as % of net sales                            6.4         7.8
Operating result (EBIT), comparable, EUR million                 4.5         4.9
Operating result (EBIT), comparable , as % of net sales          3.6         4.5
Profit / loss for the period, EUR million                      -13.8         1.1
Earnings per share, EUR                                        -0.07        0.01
Net cash flow from operating activities                         -3.0        16.6
Return on capital employed, %, annualized                      -13.8         7.9
Gross capital expenditure, continuing and discontinued           7.2         3.6
 operations, EUR million                                                        
Equity ratio, %                                                 43.9        47.7
Gearing, %                                                      36.7        29.6





OPERATING ENVIRONMENT
In 2015 there were substantial geographical differences in Glaston’s markets.
In North America, the market grew significantly, driven by a recovery in
construction.In the EMEA area, market development was stable, but demand
weakened towards the end of the year.In Asia, the markets of the Pacific area
developed positively.In China, the market developed more slowly than
expected.During the year, the South American market was subdued and,
particularly in Brazil, demand continued to be weak. 


Machines
In 2015 Machines business markets mainly developed positively.In North America,
the market situation continued to be good and glass processors invested in new
machine lines in expectation of increased construction activity.In the EMEA
area, demand growth levelled off in the final quarter.Customers’ willingness to
invest was slowed by increased economic instability as well as political
tensions. 

In South America, particularly in Brazil, markets were subdued throughout the
year.In Asia, the positive development of markets in the Pacific area
continued. 

The business area’s most significant product group was flat tempering
machines.The FC500™ flat tempering line further strengthened its position in
the market and rose to become Glaston’s most popular product.Significant deals
were closed for the USA, Poland and Kuwait as well as China, where a customer
ordered two CCS1000™ glass tempering furnaces.The first GlastonAir™ tempering
line was delivered to Colombia at the end of the year.In addition, the first
FC1000(TM) flat tempering line was delivered to the USA. 

Services
In 2015 the services market developed positively.All product groups, except for
tools, increased their sales.Glaston’s market position continued to be
strong.The profitability of the Services business was on a good level. 

The Services business’ strongest market areas were North America and the EMEA
area.The market slowdown in Asia and South America was reflected in the demand
for maintenance services. 

In upgrade products, 2015 was very good.Invoicing for modernisation and
renovation products grew by 25% compared with the corresponding period the
previous year.During the year, large upgrade deals were closed for Spain, the
USA, Colombia, the Arab Emirates, Australia and Chile. 

Spare parts sales grew by over 10% from the previous year and good results were
achieved, particularly in North America and in the EMEA area.In Russia, China
and Southeast Asia, target growth did not materialise. 

In the tools product group, competition continued to be aggressive throughout
the year and the market situation was challenging.The growth targets set for
the service work product group were achieved. 

OUTLOOK
In the final quarter of 2015, signs of caution appeared in Glaston
markets.Looking at 2016, we expect the overall market to develop positively but
cautiously. 

We expect the North American market to continue to develop well also in 2016.We
expect the EMEA area to develop positively.In Asia, we expect the Chinese
market to remain stable at its current level, and we expect growth in the
Pacific area. 

The heat treatment machines market will continue to be reasonably subdued.We
expect that demand for new heat treatment machines will be weaker than the
previous year during the early part of the year.Despite a challenging market
outlook, Glaston’s position in the market is good.Our wide product range
corresponds excellently with customers’ needs.As the technology leader, we will
continue our goal-oriented development work, in which digitalisation and new
technologies will present new business opportunities. 

The outlook for the services market is cautiously positive.Our growth
objectives are supported by Glaston’s strong market position, comprehensive
service network and up-to-date product range. 

Due to the subdued market situation and reduced order book, we expect 2016 net
sales to be slightly below the 2015 level.We expect the operating profit,
excluding non-recurring items, to be at the 2015 level.(In 2015 net sales were
EUR 123.4 million and operating profit, excluding non-recurring items, was EUR
6.1 million). 

BOARD OF DIRECTORS’ PROPOSAL ON THE DISTRIBUTION OF PROFITS
The distributable funds of Glaston Corporation are EUR 23,833,715, of which EUR
-22,649,728 represents the net loss for the financial year.The Board of
Directors proposes to the Annual General Meeting to be held on 5 April 2016
that the loss for the financial year 2015 be placed in retained earnings and
that no dividend be paid. 

The Board of Directors proposes to the Annual General Meeting that, based on
the balance sheet adopted for 2015, a return of capital of EUR 0.01 per share
be paid.Capital will be repaid from the reserve for invested unrestricted
equity. Capital will be repaid to a shareholder who is registered in the
company’s register of shareholders, maintained by Euroclear Finland Ltd, on the
record date for payment, 7 April 2016.The Board of Directors proposes to the
Annual General Meeting that the return of capital be paid on 28 April 2016. 

On the day that the proposal for the distribution of assets was made, the
number of shares entitling to a return of capital was 192,919,754, which means
that the total amount of the return of capital would be EUR 1,929,198. 

PRESS MEETING
An analyst and press conference is organized at Glaston's office on
Yliopistonkatu 7, Helsinki, on 11 February 2016 at 13.30 p.m. 

For further information, please contact:
President & CEO Arto Metsänen, tel. +358 10 500 500
Chief Financial Officer Sasu Koivumäki, tel. +358 10 500 500





GLASTON CORPORATION
Agneta Selroos
Communications Director

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

Liitteet:

Financial Statement Bulletin.pdf