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Glaston issues interim report for January 1 to September 30, 2018

The company announced that operating profits are comparable to last year’s level

Glaston corporation has released an announcement on their financial results from January 1 to September 30 as well as a statement from President and CEO Arto Metsänen on the company’s outlook for the remainder of the year and beyond.

The release includes a summary of Glaston Corporation’s interim report for January-September 2018. The complete report is available as a pdf-file. The stock exchange release is also available on the company’s website at the address www.glaston.net.

JULY–SEPTEMBER 2018 IN BRIEF

  • Orders received totalled EUR 21.7 (26.8) million.
  • Net sales totalled EUR 23.0 (24.5) million.
  • Comparable EBITDA was EUR 1.7 (1.8) million, i.e. EUR 7.5 (7.2) percent of net sales.
  • The operating profit was EUR 0.6 (1.0) million, i.e. 2.8 (4.1) percent of net sales.
  • The comparable operating profit was EUR 1.0 (1.0) million, i.e. EUR 4.2 (4.1) percent of net sales.

JANUARY–SEPTEMBER 2018 IN BRIEF

  • Orders received totalled EUR 73.6 (74.9, taking into account sold business operations 73.6*) million.
  • The order book was EUR 36.3 (37.5) million at the end of September.
  • Net sales totalled EUR 73.3 (80.0, taking into account sold business operations 77.2) million.
  • Comparable EBITDA was EUR 5.0 (5.8) million, i.e. EUR 6.9 (7.3)percent of net sales.
  • The operating profit was EUR 2.3 (3.4) million, i.e. 3.1 (4.3) percent of net sales.
  • The comparable operating profit was EUR 2.8 (3.6) million, i.e. EUR 3.8 (4.5) percent of net sales.
  • Return on capital employed (ROCE) was 6.0 (9.0) percent.
  • Earnings per share were EUR 0.007 (0.010).
  • Net interest-bearing debt totalled EUR 9.8 (8.2) million and net gearing was 27.2 (22.6) percent.

Glaston has applied the new revenue recognition standard IFRS 15 fully retrospectively from 1 January 2018, and therefore the interim report for  January 1 to September 30 2018 is reported in accordance with the new standard for 2018 actual data and 2017 comparison data.

* In May 2017, Glaston sold its pre-processing business in the USA and Canada.

Glaston’s outlook remains unchanged and the company expects the full-year comparable operating profit to improve from 2017. (Full-year 2017 comparable operating profit was EUR 5.0 million according to the new revenue recognition standard IFRS 15).

A statement from Arto Metsänen reads: “In the third quarter, the glass processing market was relatively quiet, but a slight pick-up was perceptible at the end of the review period. Glaston’s third-quarter order intake totalled EUR 21.7 (26.8) million. The lower level of orders in the third quarter is explained, partly, by the Glasstec 2018 Fair, held in Düsseldorf in October. Glasstec is the glass processing industry’s most important event. Customers have traditionally scheduled their orders for this event, held every second year, or for the period following it. At this year’s event we had many visitors at our stand, our latest products were introduced to customers and we engaged in many direct negotiations with customers on the spot. The fair was a success for Glaston.

“Increased economic and political uncertainty as well as various trade policy tensions have not, so far, affected our customers’ willingness to invest or demand for our products. Offering activity remained at a good level, but decision-making was slow. In the longer term, environmental awareness and the need for energy-efficient solutions will grow and construction safety regulations are constantly tightening. This development creates new opportunities for Glaston.

“Third-quarter net sales declined by 6 percent to EUR 23.0 (24.5) million. The decline was due mainly to an exceptional special equipment valued at over EUR 1 million delivered for Heliotrope Technologies’ prototype line in the corresponding period of the previous year. The Group’s comparable operating profit was at the level of the corresponding period of the previous year and the Group’s operating profit margin improved slightly to 4.2 (4.1) percent. Profitability was improved by increased profitability of the company’s core business.

“Despite the low order intake for the third quarter, our full-year outlook is unchanged. Traditionally, the final quarter of year is the most important quarter for us, and this year its significance is even higher.

“We are exploring the possibility of reducing the number of shares in the company by combining shares (so-called reverse split) in order to increase interest in the company’s share, to improve conditions for share trading and to increase flexibility in connection to return of capital. The arrangement requires a decision of Glaston’s General Meeting and we will revert to the issue in connection with Glaston’s AGM in spring 2019.”

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