Glaston initiates co-operation negotiations in its Finnish units

Glaston Corporation initiates co-operation negotiations concerning measures to adapt the Glaston segment’s operations to lower than expected heat treatment equipment demand - outlook for 2019 remains unchanged

The adaptation measures concern all companies in Finland within the Glaston segment. The co-operation negotiations concern both temporary lay-offs and termination of employment contracts. The company estimates that the negotiations could lead to the termination of approximately 20 employment contracts. These measures, in combination with other profitability improving actions, target savings of approximately 2 million EUR.

Demand for heat treatment equipment has been weak during the end of the summer and according to the company’s preliminary calculations the third quarter order intake for the Heat Treatment Technologies will be lower than expected and approximately 20 percent lower than in the corresponding period 2018. Demand for insulation equipment has remained strong and demand for Services has also remained at a good level. Final third quarter order intake figures and market information will be provided in Glaston Corporation’s third quarter interim report which will be published on 28 October.

Based on the aforementioned measures, other profitability improving actions as well as faster than planned integration of Bystronic glass, the company’s full-year 2019 profitability guidance remains unchanged. The Glaston segment’s 2019 full-year profit will be skewed towards the fourth quarter.

Glaston Corporation estimates its 2019 comparable pro forma EBITA to be at the 2018 level or to slightly improve (2018 comparable pro forma EBITA 11.5 million EUR).

At the end of June, The Glaston segment employed 208 employees in its units in Finland. The co-operation negotiations are expected to be concluded by the end of November.

glaston.net