Glaston Sales Down; South American Market Better than Others
February 9, 2012

Glaston of Finland has reported a 4.9 percent loss in 2011 net sales compared to the previous year, according to the company's 2011 financial statements published today. Consolidated net sales totaled $189.7 million (142.7 million euro), down from $198.6 million in 2010.

Company officials have attributed the loss to market conditions.

"In 2011 Glaston's operating environment and market situation remained challenging," says Arto Metsänen, president and CEO, in a February 9 news release. "At the beginning of the year there were signs of growth, but in the second half the problems of the world economy were reflected in our customers' willingness to invest and led to the postponement of larger investment decisions."

The cautiously positive development of the glass fabricating market in the early part of 2011 slowed in the second half of the year, according to the report. The South American market held its own throughout the year. In Western Europe, demand remained weak, while in Eastern Europe the glass processing machine market picked up at the end of the year. In Asia, the leveling off of the market that began in the second quarter continued in the second half of the year. In North America, demand for machines remained weak, the report says.

Orders received in the machines segment totaled $118.6 million in 2011, according to the report. In January-December 2011, machine net sales totaled $119.6 million, down from $126.3 million in 2010.

The restructuring of the machines segment was completed in July when the previously separate pre-processing and heat treatment factories in Brazil were combined into a single manufacturing facility.

Compared with the previous year, the services segment grew in Asia, South America and North America. Orders received in the services segment totaled $41.6 million in 2011. In January-December 2011, net sales totaled $41.3 million, compared to $42.5 million in 2010. During the year, no significant changes took place in the segment's worldwide maintenance service network and number of service locations.

The software solutions segment's most significant market areas in 2011 were Central, Western and Northern Europe, North America and Japan, according to the report. Orders received in the software solutions segment totaled $27.8 million in 2011. In January-December, the net sales of that segment totaled $31 million, compared to $32 million in 2010.

The following companies were liquidated last year: Glaston Estonia Oü in Estonia, Glasto Holding B.V. and Glaston Netherlands B.V. in the Netherlands, Glaston Spain S.L. in Spain and Glaston Belgium GmbH in Belgium, the report says.

Glaston officials expect that 2012 net sales will be at least at the 2011 level and that the operating result will be positive. Growth in the Asia market is expected to level off. In North America and the EMEA (Europe, the Middles East and Africa) area, the market will also continue to be challenging. The positive development of the South American market is expected to continue.

"I look toward 2012 with confidence," Metsänen says in the report. "We are bringing our operational efficiency measures to completion. We have purposefully developed our operations and through active product development we are able to offer a comprehensive range of up-to-date products and services. These measures create a foundation for growing our business."

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