Glaston Corporation released a summary of its financial statements bulletin for 2018. A good fourth quarter where orders received grew and comparable operating profit improved. The complete report and the stock exchange release are available on the company’s website.
The company’s business is seasonal and, historically, the first quarter of the year is generally the weakest and the fourth quarter the strongest. Net sales and comparable operating profit are expected to be low for the first quarter of 2019, due to the low number of new orders received in the third quarter and the beginning of the fourth quarter of last year. Deviating from Glaston’s disclosure policy and due to the timetable of the Bystronic glass acquisition, Glaston will disclose information on its outlook for the whole of 2019 at a later stage.
Glastons President & Ceo Arto Metsänen commented on the statements bulletin “Glaston’s development in the final quarter of 2018 was good. The Glasstec fair was strongly reflected in the development of the fourth quarter, and indeed of the whole autumn. The fair was a success for Glaston, and our fourth quarter order intake grew 18 per cent from the comparison period. We received a number of large orders from different parts of the world, and the pick-up in the North American market was particularly positive. Net sales for the quarter fell slightly compared to the corresponding period last year. I am particularly satisfied with our profitability development in the final quarter. Our comparable operating profit improved significantly, and the comparable operating profit margin was a record at 8.8 per cent.”
Overall, 2018, despite a couple of weak quarters, was good. Glastons order intake grew 4 per cent and its order book 12 per cent from the previous year, which created a good basis for 2019 development and at the same time also for future changes. While net sales declined slightly, comparable operating profit improved to 5.2 million euros from the previous year’s 5.0 million euros.
At the end of November, the company divested its Tools business in accordance with company strategy. The sale of the business had a slightly positive impact on the Group’s comparable operating profit. The divestment supports the goals of further improving its profitability.
Arto Metsänen goes on to say “In our strategy, updated in autumn 2018, we announced our goal to be at the forefront of market development while creating added value for our customers through new technologies and business models. An indication of this was our announcement on 25 January 2019 of the acquisition of the Swiss-German company Bystronic glass. Bystronic glass is a globally operating high-end machinery, systems, software and services provider, whose product offering and services are highly complementary to Glaston’s offering.”
The acquisition, the largest in the sector for two decades, is Glastons response to the market’s growing efficiency requirements, changes in glass demand and growing maintenance service needs.
Arto Metsänen continues “It supports our goal of further strengthening our position in the glass processing value chain and diversifying our offering to the architectural market as well as complementing offering to the automotive market. The combination of the companies creates for us a unique opportunity to develop for our customers’ benefit a comprehensive range of products and services that in the future will cover the entire value chain. I am looking forward to our cooperation and believe strongly in our success.”