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 million 2,8 0,8 4,9
Operating result (EBIT), comparable , as % of net sales 4,9 1,6 4,5
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 discontinued operations, EUR million 2.8 1.0 3.6
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