Glaston Releases Interim Report
October 26, 2011

Glaston Corp. of Finland released its interim report January 1–September 30, 2011, and revised its outlook in the report. Weakened market prospects will impact the development of the final quarter, and the officials expect 2011 net sales to be at the 2010 level, and the operating result to be a slight loss. Previously, the 2011 net sales were expected to be least at the 2010 level and the operating result to return to profit.

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 leveling 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.

  • Orders received in January-September totaled EUR 101.6 (107.6) million. Orders received in the third quarter totaled EUR 26.8 (38.5) million.
  • The order book on September 30, 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) percent 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) percent 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) percent.
  • January-September earnings per share were EUR -0.13 (-0.16) and third-quarter earnings per share were EUR -0.04 (-0.07).

“In the third quarter, uncertainty in the world economy grew,” says president and CEO Arto Metsänen. “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, the net sales did not develop according to 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, according to the company. The uncertain market outlook also will be reflected in demand for glass processing machines.

“We will purposefully continue our investments in those areas which do not require significant investments from customers, namely services, software solutions and tools,” Metsänen says. “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 program 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.”

Subscribe to USGlass magazine.
Subscribe to receive the free e-newsletter.