Glaston Corp. Recognizes Impairment Loss of Goodwill
December 14, 2010
GlastonCorp of Helsinki, Finland, announced in its January – September interim report that it had detected indications of a possible impairment of goodwill in the operating segments within the Machines Reportable segment, the company reported today in a news release. Impairment testing of goodwill has been finalized, and as a result of the tests, Glaston's Board of Directors has decided in its meeting today to recognize an impairment loss of goodwill totaling EUR 5.8 million in the pre-processing operating segment within the machines reportable segment. Impairment testing of other operating segments within the Machines Reportable segment did not result in any impairment of goodwill.
Glaston performed the annual goodwill impairment testing of other reportable segments, Software Solutions and Services, according to the normal timetable during the final quarter. Based on the tests, there is no need to recognize an impairment loss, the company adds.
The impairment loss of goodwill has no cash flow effect, and it is recognized in the profit or loss statement in the reporting period of 2010 as a non-recurring item. The company adds that its outlook remains unchanged and “we expect that 2010 net sales will be at the 2009 level and that the operating result will improve significantly.”