Glaston Corporation Interim Report 1 January-30 September 2010
Glaston Corporation Interim Report 27.10.2010 at 13.00
Glaston Corporation Interim Report 1 January-30 September 2010
- Orders received in January-September totalled EUR 108.6 (107.4) million.
Orders received in the third quarter totalled EUR 39.0 (35.2) million, 11% up
on the corresponding period last year.
- Glaston's order book on 30 September 2010 was EUR 40.7 (40.9) million.
- Consolidated net sales in January-September were EUR 111.8 (115.9) million.
- The operating result in January-September was a loss of EUR 7.3 (26.9 loss)
million, i.e. -6.6 (-23.2)% of net sales. The third quarter operating result
was a loss of EUR 2.8 (7.4 loss) million.
- Return on capital employed (ROCE) was -8.3 (-18.8)%.
- Earnings per share in January-September were EUR -0.17 (-0.34) and
third-quarter earnings per share were EUR -0.07 (-0.11).
- Glaston expects that 2010 net sales will be at the 2009 level and that the
operating result will improve significantly.
President & CEO Arto Metsänen:
No significant changes took place in Glaston's operating environment in the
third quarter. The Asian and South American markets continued to develop well.
In Europe demand remained weak, but signs of a cautious recovery of the market
were perceptible. The market situation in North America continued to be weak.
The improvement of our operating result is an indication of the effectiveness of
our adjustment and cost-saving measures, because in this we have received no
support from the market. The operating result remains unsatisfactory, however,
and we will purposefully continue measures to improve profitability. The company
is also considering additional adjustment measures, which if implemented may
lead to personnel reductions and give rise to non-recurring costs in the final
quarter. Possible measures will be communicated in due course.
The glass industry's most important fair (Glasstec), which took place at the end
of September, exceeded our expectations in terms of its activity. The fair gave
a good picture of the development of the market and future trends. At the fair,
we launched seven new products, including the Glaston Tamglass RC200 and FC500
flat tempering machines, both equipped with the latest technology.
Markets
In Asia and South America, the positive development of the glass processing
machine market continued during the third quarter. In Europe and North America,
demand remained weak, but signs of a pick-up in the market were perceptible in
the third quarter.
Of Glaston's customer segments, the automotive industry and solar energy
manufacturers were more active during the third quarter. In the solar energy
segment, customers showed interest in glass processing with PV (photovoltaic)
technology.
Machines
Positive development in the Asian and South American markets continued in the
third quarter. In the EMEA area, demand continued on a low level, apart from a
few country-specific exceptions. Customers' unsatisfactory profitability during
the early part of the year and the continued unfavourable situation in the
financial markets prolonged investment decisions, which particularly affected
Heat Treatment machine orders. At the end of the review period, however, an
increase in activity was evident and some customers initiated investment
projects which were previously on hold.
In South America, the APAC area and the Middle East, increasing utilisation
rates of glass processing machines combined with higher yield requirements
sought from machines increased demand for tools.
In the last week of the third quarter, the Machines segment launched a number of
new products at the Glasstec Fair. Two new flat tempering machines were launched
at the fair: the Glaston Tamglass FC500, equipped with a patented energy-saving
heating system, for high quality Low-E glass tempering, and the Glaston Tamglass
RC200, which combines excellent quality with a competitive price. The machines
are equipped with the new online iControL control and automation system, which
represents the latest technology, combining ease of use as well as production
efficiency and reliability. In addition, Glaston presented a revamped range of
flat tempering machines, with a new product identity and names.
Pre-processing machine customers were introduced to Glaston Stock, a concept
that combines machines, tools and extended warranty offering customers added
value as security to keep their operation costs at a planned level.
At the end of September, Glaston entered into a strategic cooperation with the
Finnish company Beneq Oy. The unique product concept Beneq-Glaston TFC2000
system for the production of TCO (transparent conductive oxide) coated solar
panel (PV) glass, jointly developed by the companies, was launched at the
Glasstec Fair.
In January-September, the Machines segment's net sales totalled EUR 71.4 (70.6)
million.
Services
The recovery of the Services segment market continued in the third quarter. In
Asia and North America, demand for upgrade products picked up in the review
period. The market recovery was also evident in the segment's number of new
orders, which grew slightly compared with earlier quarters of the year.
In the review period, the Services segment launched a number of new products,
all connected with improving the quality of the end product and expanding the
features and raising the capacity of machines. The iLooK online quality
measurement system, presented at the Glasstec Fair, received a very positive
reception. Other new products were the Vortex Pro convection system, which
enables a higher production capacity and the manufacture of better quality
glass, a blower monitoring system and automatic malfunction reporting by e-mail
and text message.
In January-September, the Services segment's net sales were EUR 23.3 million (in
2009 EUR 29.5 million, including Tamglass Glass Processing's share of EUR 5.3
million).
Software Solutions
The operational priority of the Software Solutions segment in the third quarter
was the Glasstec Fair. Glass production automation, chosen as the main topic for
the fair, was of great interest to fair visitors, as were the automation
products AWFactory, Panorama and DynOpt.
Third-quarter new orders, boosted by Glasstec, were 39% higher than in the
corresponding period the previous year. Orders received in the third quarter
totalled EUR 6.1 (4.4) million. Particularly towards the end of the review
period, there were signs that customers' willingness to invest was returning.
In January-September, the Software Solutions segment's net sales totalled
EUR 18.1 (17.7) million.
Orders received
Glaston's orders received in the review period totalled EUR 108.6 (107.4)
million. Of orders received, the Machines segment accounted for 64%, the
Services segment 20% and the Software Solutions segment 16%. Orders received in
the third quarter totalled EUR 39.0 (35.2) million, 11% up on the corresponding
period last year.
Order book
Glaston's order book on 30 September 2010 was EUR 40.7 (40.9) million. Of the
order book, the Machines segment accounted for EUR 34.7 million, the Services
segment for EUR 1.9 million and the Software Solutions segment for EUR 4.0
million.
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| Order book, EUR million | 30.9.2010 | 30.9.2009 |
--------------------------------------------------------------------------------
| Machines | 34.7 | 35.8 |
--------------------------------------------------------------------------------
| Services | 1.9 | 1.6 |
--------------------------------------------------------------------------------
| Software Solutions | 4.0 | 3.5 |
--------------------------------------------------------------------------------
| Total | 40.7 | 40.9 |
--------------------------------------------------------------------------------
Net sales and operating result
Net sales for the review period totalled EUR 111.8 (115.9) million. The Machines
segment's net sales in January-September were EUR 71.4 (70.6) million, the
Services segment's net sales EUR 23.3 million (in 2009 EUR 29.5 million, of
which Tamglass Glass Processing's share EUR 5.3 million) and the Software
Solutions segment's net sales EUR 18.1 (17.7) million.
Third-quarter net sales were EUR 31.9 (31.5) million and distributed across the
business segments as follows: Machines EUR 18.5 (17.3) million, Services EUR 7.8
(9.1) million and Software Solutions EUR 6.1 (5.8) million.
--------------------------------------------------------------------------------
| Net sales, EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Machines | 71.4 | 70.6 | 92.5 |
--------------------------------------------------------------------------------
| Services | 23.3 | 29.5 | 37.7 |
--------------------------------------------------------------------------------
| Software Solutions | 18.1 | 17.7 | 23.9 |
--------------------------------------------------------------------------------
| Other and internal sales | -1.0 | -1.9 | -2.4 |
--------------------------------------------------------------------------------
| Total | 111.8 | 115.9 | 151.8 |
--------------------------------------------------------------------------------
The operating result in January-September was a loss of EUR 7.3 (26.9 loss)
million, i.e. -6.6 (-23.2)% of net sales. The operating result for the
comparison year includes non-recurring items totalling EUR 4.3 million. Realised
cost-savings had a positive impact on the result. The 2010 operating result is
adversely affected by the EUR 1.2 million operating loss of Tamglass Glass
Processing and the 2009 operating result by a corresponding EUR 3.3 million
operating loss.
Of the January-September operating loss, excluding non-recurring items, the
Machines segment accounted for EUR -5.8 (-14.7) million, the Services segment
for EUR 2.1 (-2.0) million and the Software Solutions segment for EUR 1.4 (0.6)
million. The Services segment figures include Tamglass Glass Processing.
The third-quarter operating loss was EUR 2.8 (7.4) million, of which the
Machines segment accounted for EUR -2.6 (-4.9) million, the Services segment for
EUR 0.6 (-0.1) million and the Software Solutions segment for EUR 0.2 (0.5)
million.
--------------------------------------------------------------------------------
| Operating result, EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Machines | -5.8 | -14.7 | -22.4 |
--------------------------------------------------------------------------------
| Services | 2.1 | -2.0 | -2.4 |
--------------------------------------------------------------------------------
| Software Solutions | 1.4 | 0.6 | 0.4 |
--------------------------------------------------------------------------------
| Other and eliminations | -5.1 | -6.5 | -9.3 |
--------------------------------------------------------------------------------
| Operating result, excluding | -7.3 | -22.6 | -33.6 |
| non-recurring items | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | -4.3 | -21.6 |
--------------------------------------------------------------------------------
| Operating result | -7.3 | -26.9 | -55.3 |
--------------------------------------------------------------------------------
The loss for the review period was EUR 13.2 (26.8 loss) million, and the loss
for the third quarter was EUR 5.4 (8.7 loss) million. Return on capital employed
was -8.3 (-18.8)% and earnings per share were EUR -0.17 (-0.34). Earnings per
share in July-September were EUR -0.07 (-0.11).
Balance sheet, cash flow and financing
At the end of the review period, the
balance sheet total was EUR 215.1 (251.5) million. The equity attributable to
owners of the parent was EUR 57.5 (95.8) million, i.e. EUR 0.73 (1.22) per
share. The equity ratio on 30 September 2010 was 28.9 (40.4)%.
Return on equity in January-September was -27.7 (-32.5)%.
Cash flow from operating activities, excluding the change in working capital,
was EUR -11.2 (-25.1) million in the review period. The most significant reasons
for the negative cash flow from operating activities were the settling of
provisions recognised in 2009 and financial items, such as the payment of
convertible bond interest. The change in working capital was EUR -6.3 (20.5)
million. Cash flow from investments was EUR -2.2 (-6.7) million. Cash flow from
financing activities in January-September was EUR 15.0 (18.9) million.
A EUR 6.3 million convertible bond was issued in February. The terms of the
convertible bond are similar to those of the convertible bond issued in June
2009.
The Group's liquid funds at the end of the review period totalled EUR 12.2
(19.2) million. Interest-bearing net debt totalled EUR 80.2 (67.6) million and
net gearing was 138.7 (70.3)%.
At the end of the third quarter, the company's loan covenants, EBITDA and net
gearing would not have met the limits originally agreed in Glaston's revolving
credit facility agreement. Glaston has, however, agreed with its financial
institutions that the covenant terms of the revolving credit facility agreement
will not be applied, and negotiations with the financial institutions on the
renewal of existing financing agreements are ongoing. The company aims to reach
a long-term financing solution with financial institutions by the end of January
2011.
Efficiency programme
The efficiency improvement measures initiated in 2008 and the extensive
adjustment programme to reorganise operations initiated in 2009 were completed
for the most part during the first half of 2010. The most significant adjustment
measures were directed at Europe, where the number of personnel has been reduced
by 186 during the year (Finland -43, and the rest of Europe -143). Measures such
as temporary lay-offs continued in Finland and Italy during the third quarter to
adjust production capacity to correspond with demand.
The project to simplify the sales and service organisation and to expand the
reseller network was continued. Measures were most strongly directed at the EMEA
area.
Capital expenditure, depreciation and amortisation
Glaston's gross capital expenditure totalled EUR 3.2 (7.4) million. In the
review period, there were no significant individual investments. Investments
were mainly capitalized development expenditure.
During the review period, depreciation, amortisation and impairment losses on
intangible assets and property, plant and equipment totalled EUR 5.9 (7.5)
million, of which impairment losses were EUR 0.3 (1.2) million.
Organisation and personnel
On 30 September 2010, Glaston Corporation had a total of 997 (1,244) employees.
Of the Group's employees, 18% worked in Finland and 47% elsewhere in the EMEA
area, 21% in Asia and 14% in the Americas. The average number of employees was
1,046 (1,392).
Share-based incentive scheme
On 9 June 2010, the Board of Directors decided on a
new share-based incentive scheme for management. The scheme has one performance
period covering 2010 and 2011, with the performance criterion being the
development of the Group's operating profit. Any bonus will be paid after the
result for 2011 is published in spring 2012.
Through the scheme, a maximum of approximately 2.5 million Glaston shares can be
distributed. Any income taxes and other statutory payments arising from the
payment of the bonus will be deducted from the gross number of shares before
their distribution. During the performance period, the target group for the
share-based incentive scheme will consist of a maximum of 12 people.
Shares and share prices
Glaston Corporation's paid and registered share capital
on 30 September 2010 was EUR 12.7 million and the number of issued shares
totalled 79,350,000. The company has one series of share. At the end of the
review period, the company held 788,582 of the company's own shares (treasury
shares), corresponding to 1% of the total number of issued shares and votes. The
counter book value of treasury shares is EUR 126,173. Every share that the
company does not hold itself entitles its owner to one vote at the Annual
General Meeting. The share has no nominal value. The counter book value of each
share is EUR 0.16.
On 30 September 2010, the market capitalisation of the company's shares,
treasury shares excluded, was EUR 100.6 (97.4) million.
During the first nine months of the year, a total of around 9.2 million of the
company's shares were traded, representing 11.7% of the average number of
shares. The lowest price paid for a share was EUR 1.05 and the highest price EUR
1.65. The volume-weighted average price of shares traded during
January-September was EUR 1.28. The closing price on 30 September 2010 was EUR
1.28.
Decisions of the Annual General Meeting
The Annual General Meeting of Glaston
Corporation was held in Helsinki on 13 April 2010. The Annual General Meeting
approved the financial statements and consolidated financial statements for 2009
and released the Board of Directors and the President & CEO from liability for
the financial year 1 January-31 December 2009.
The Annual General Meeting approved the proposal of the Board of Directors that
no dividend be distributed for the financial year 2009.
The Annual General Meeting confirmed the re-election of the following members of
the Board of Directors for a year-long term of office: Claus von Bonsdorff,
Klaus Cawén, Jan Lång, Carl-Johan Rosenbröijer, Christer Sumelius and Andreas
Tallberg. In addition, Teuvo Salminen was elected as a new member of the Board.
The Annual General Meeting decided to maintain the Chairman of the Board's
annual remuneration at EUR 40,000 and the Deputy Chairman's annual remuneration
at EUR 30,000. It was also decided to maintain the annual remuneration of the
other Members of the Board at EUR 20,000.
The Annual General Meeting elected as auditor Public Accountants Ernst & Young,
with the responsible auditor being Harri Pärssinen, APA.
The Annual General Meeting approved an amendment to Article 11 of the Articles
of Association that the notice to attend a General Meeting be published no later
than three weeks prior to the General Meeting, however at the latest nine days
before the record date of the General Meeting.
At its organising meeting on 13 April 2010, Glaston's Board of Directors elected
Andreas Tallberg to continue as the Chairman of the Board and Christer Sumelius
to continue as the Deputy Chairman of the Board.
Authorisations given by the Annual General Meeting
The Annual General Meeting also authorised the Board of Directors to decide on
the issue of new shares and/or the conveyance of the own shares held by the
company. By virtue of the authorisation, the Board of Directors is entitled to
decide on the issuance of a maximum of 6,800,000 new shares and on the
conveyance of a maximum of 6,800,000 own shares held by the company. However,
the total number of shares to be issued and/or conveyed may not exceed 6,800,000
shares. The new shares may be issued and own shares held by the company may be
conveyed either against payment or without payment.
The new shares may be issued and/or own shares held by the company conveyed to
the company's shareholders in proportion to their existing shareholdings in the
company, or by means of a directed share issue, waiving the pre-emptive
subscription right of the shareholders, if there is a weighty reason for the
company to do so, such as the shares are to be used to improve the capital
structure of the company or as consideration in future acquisitions or other
arrangements that are part of the company's business or as part of company's or
its subsidiaries' incentive schemes.
Shares can be issued or conveyed without payment in exception to the pre-emptive
subscription right of shareholders only if there is an especially weighty
financial reason for the company to do so, taking the interests of all
shareholders into account. The Board of Directors may decide on a share issue
without payment also to the company itself. A decision regarding a share issue
to the company itself cannot be made such that the total number of shares held
jointly by the company or its subsidiaries would exceed one tenth of all shares
of the company.
The subscription price of new shares issued and the consideration paid for the
conveyance of the company's own shares shall be credited to the reserve for
invested unrestricted equity.
By virtue of the share issue authorisation, the Board of Directors shall decide
on other matters relating to the issuing and conveyance of shares. The share
issue authorisation is valid until the end of the 2012 Annual General Meeting.
The Board of Directors has no other authorisations.
Uncertainties and risks in the near future
Despite the cautious recovery of the
world economy, Glaston's development in the near future is still uncertain. Of
Glaston's markets, the EMEA area and North America remain quiet. The contracted
market has also led to an oversupply of customers' production capacity.
Despite the gradual pick-up in the economy, difficulties related to customers'
financing arrangements limit investment opportunities. This affects major
machinery investments in particular, and orders may be postponed. Customers'
financial situations also impact the collection of receivables and credit
losses.
As IAS 36 Impairment of Assets standard has changed it affects the allocation of
goodwill in Glaston. Previously goodwill was allocated to reportable segments
aggregated from operating segments. According to the change in the standard, the
unit to which the goodwill can be allocated cannot, however, be larger than an
operating segment before it is aggregated to be a part of a reportable segment.
For this reason the goodwill allocated to the Machines reportable segment is
being re-allocated to the operating segments within the reportable segment.
In preparing its January - September interim report Glaston has detected
indications of a possible impairment of goodwill in the operating segments
within the Machines reportable segment. For this reason Glaston has started
impairment testing of the goodwill related to the Machines segment. The results
of the tests will be reported when the testing is finalized.
Glaston prepares the annual impairment testing of goodwill relating to the other
reportable segments according to the normal timetable during the fourth quarter.
Outlook
A modest recovery in Glaston's market is expected during 2010. The
positive development is expected to continue in Asia, particularly in the
Chinese market. Demand is also expected to remain good in South America. Despite
the slight pick-up in the European market, the glass processing machine market,
apart from for a few country-specific exceptions, remains subdued and recovery
in Europe has been slower than expected.
In 2010 the priority for developing operations is improving profitability. The
cornerstones of Glaston's operations remain the architectural glass segment and
the solar energy market. We will continue purposefully to strengthen our
position in China and elsewhere in Asia.
Published efficiency measures are proceeding as planned. The company is also
considering additional adjustment measures, which if implemented may lead to
personnel reductions and give rise to non-recurring costs in the final quarter.
We expect that 2010 net sales will be at the 2009 level and that the operating
result will improve significantly.
Helsinki, 27 October 2010
Glaston Corporation
Board of Directors
For further information, please contact:
Arto Metsänen, President&CEO
Phone: +358 10 500 500
Sender:
Glaston Corporation
Agneta Selroos
Corporate Communications and IR Manager
Phone: +358 10 500 6105
Glaston Corporation
Glaston Corporation is an international glass technology company. Glaston is the
global market leader in glass processing machines, and a comprehensive
One-Stop-Partner supplier to its customers. Its product range and service
network are the most extensive in the industry. Glaston's well-known brands are
Bavelloni, in pre-processing machines and tools, Tamglass and Uniglass, in
safety glass machines and Albat+Wirsam in software.
Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki, Mid Cap List.
Distribution: OMX, key media, www.glaston.net
GLASTON CORPORATION
CONDENSED FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 30 SEPTEMBER 2010
These interim financial statements are not audited. As a result of rounding
differences, the figures presented in the tables may not add up to the total.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
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| EUR million | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 58.4 | 66.2 | 58.4 |
--------------------------------------------------------------------------------
| Other intangible assets | 18.8 | 23.7 | 19.7 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 22.1 | 27.1 | 24.7 |
--------------------------------------------------------------------------------
| Investments in joint ventures and | 0.0 | 0.8 | 0.4 |
| associates | | | |
--------------------------------------------------------------------------------
| Available-for-sale assets | 0.3 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Loan receivables | 4.2 | 5.8 | 5.9 |
--------------------------------------------------------------------------------
| Deferred tax assets | 9.3 | 9.9 | 8.5 |
--------------------------------------------------------------------------------
| Total non-current assets | 113.2 | 134.0 | 117.9 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 36.5 | 38.0 | 37.4 |
--------------------------------------------------------------------------------
| Receivables | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 49.8 | 56.3 | 52.2 |
--------------------------------------------------------------------------------
| Assets for current tax | 3.4 | 4.1 | 3.6 |
--------------------------------------------------------------------------------
| Total receivables | 53.2 | 60.3 | 55.8 |
--------------------------------------------------------------------------------
| Cash equivalents | 12.2 | 19.2 | 15.6 |
--------------------------------------------------------------------------------
| Total current assets | 101.9 | 117.5 | 108.8 |
--------------------------------------------------------------------------------
| Total assets | 215.1 | 251.5 | 226.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Equity and liabilities | | | |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | 12.7 | 12.7 | 12.7 |
--------------------------------------------------------------------------------
| Share premium account | 25.3 | 25.3 | 25.3 |
--------------------------------------------------------------------------------
| Other reserves | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Reserve for invested unrestricted | 0.1 | 0.2 | 0.2 |
| equity | | | |
--------------------------------------------------------------------------------
| Treasury shares | -3.3 | -3.5 | -3.5 |
--------------------------------------------------------------------------------
| Fair value reserve | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Retained earnings and exchange | 35.9 | 87.9 | 87.9 |
| differences | | | |
--------------------------------------------------------------------------------
| Net result attributable to owners of | -13.2 | -26.8 | -53.6 |
| the parent | | | |
--------------------------------------------------------------------------------
| Equity attributable to owners of the | 57.5 | 95.8 | 69.0 |
| parent | | | |
--------------------------------------------------------------------------------
| Non-controlling interest | 0.3 | 0.4 | 0.3 |
--------------------------------------------------------------------------------
| Total equity | 57.8 | 96.2 | 69.4 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Convertible bond | 26.0 | 19.8 | 20.1 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 4.2 | 17.1 | 4.7 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-current interest-free liabilities | 5.0 | 6.5 | 7.3 |
| and provisions | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 5.0 | 8.5 | 6.6 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 40.2 | 51.9 | 38.8 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | 62.3 | 49.9 | 54.4 |
--------------------------------------------------------------------------------
| Current provisions | 4.9 | 4.0 | 9.8 |
--------------------------------------------------------------------------------
| Trade and other payables | 48.3 | 48.1 | 53.2 |
--------------------------------------------------------------------------------
| Liabilities for current tax | 1.6 | 1.5 | 1.0 |
--------------------------------------------------------------------------------
| Total current liabilities | 117.0 | 103.4 | 118.5 |
--------------------------------------------------------------------------------
| Total liabilities | 157.2 | 155.3 | 157.3 |
--------------------------------------------------------------------------------
| Total equity and liabilities | 215.1 | 251.5 | 226.7 |
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CONDENSED CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 31.9 | 31.5 | 111.8 | 115.9 | 151.8 |
--------------------------------------------------------------------------------
| Other operating income | 0.2 | 0.4 | 0.5 | 0.9 | 1.1 |
--------------------------------------------------------------------------------
| Expenses | -33.0 | -36.4 | -113.2 | -135.2 | -185.8 |
--------------------------------------------------------------------------------
| Share of associates and | 0.0 | -0.7 | -0.4 | -1.1 | -1.5 |
| joint ventures' result | | | | | |
--------------------------------------------------------------------------------
| Depreciation, amortization | -2.0 | -2.3 | -5.9 | -7.5 | -20.9 |
| and impairment | | | | | |
--------------------------------------------------------------------------------
| Operating profit / loss | -2.8 | -7.4 | -7.3 | -26.9 | -55.3 |
--------------------------------------------------------------------------------
| Financial items, net | -2.9 | -0.9 | -5.9 | -1.7 | -2.3 |
--------------------------------------------------------------------------------
| Result before income taxes | -5.7 | -8.4 | -13.3 | -28.6 | -57.6 |
--------------------------------------------------------------------------------
| Income taxes | 0.3 | -0.3 | 0.0 | 1.8 | 4.0 |
--------------------------------------------------------------------------------
| Profit / loss for the | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 |
| period | | | | | |
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Owners of the parent | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 |
--------------------------------------------------------------------------------
| Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR, | -0.07 | -0.11 | -0.17 | -0.34 | -0.68 |
| basic | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | -0.07 | -0.11 | -0.17 | -0.34 | -0.68 |
| diluted | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit / loss, | -8.9 | -23.6 | -6.6 | -23.2 | -36.4 |
| as % of net sales | | | | | |
--------------------------------------------------------------------------------
| Profit / loss for the | -17.0 | -27.6 | -11.8 | -23.1 | -35.3 |
| period, as % of net sales | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-recurring items | - | - | - | -4.3 | -21.6 |
| included in operating | | | | | |
| profit / loss | | | | | |
--------------------------------------------------------------------------------
| Operating profit / loss, | -2.8 | -7.4 | -7.3 | -22.6 | -33.6 |
| non-recurring items | | | | | |
| excluded | | | | | |
--------------------------------------------------------------------------------
| Operating profit / loss, | -17.0 | -23.6 | -11.8 | -19.5 | -22.2 |
| non-recurring items | | | | | |
| excluded, as % of net | | | | | |
| sales | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPEREHENSIVE INCOME
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit / loss for the | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 |
| period | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Total exchange differences | -1.1 | -0.6 | 0.7 | -0.7 | -0.7 |
| on translating foreign | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Fair value changes of | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| available-for-sale assets | | | | | |
--------------------------------------------------------------------------------
| Income tax on other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | -1.0 | -0.6 | 0.7 | -0.7 | -0.7 |
| for the reporting period, | | | | | |
| net of tax | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | -6.5 | -9.3 | -12.5 | -27.5 | -54.4 |
| for the reporting period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Owners of the parent | -6.4 | -9.3 | -12.5 | -27.5 | -54.3 |
--------------------------------------------------------------------------------
| Non-controlling interest | -0.1 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total comprehensive income | -6.5 | -9.3 | -12.5 | -27.5 | -54.4 |
| for the reporting period | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
--------------------------------------------------------------------------------
| EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Cash flows from operating activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in net | -11.2 | -25.1 | -29.8 |
| working capital | | | |
--------------------------------------------------------------------------------
| Change in net working capital | -6.3 | 20.5 | 28.6 |
--------------------------------------------------------------------------------
| Net cash flow from operating | -17.5 | -4.6 | -1.2 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Business combinations | 0.0 | -0.5 | -0.5 |
--------------------------------------------------------------------------------
| Other purchases of non-current assets | -3.0 | -5.4 | -6.5 |
--------------------------------------------------------------------------------
| Investment in joint ventures | -0.2 | -2.0 | -2.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of joint ventures | 0.4 | - | - |
--------------------------------------------------------------------------------
| Other | - | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Proceeds from sale of other | 0.6 | 1.2 | 1.4 |
| non-current assets | | | |
--------------------------------------------------------------------------------
| Net cash flow from investing | -2.2 | -6.7 | -7.5 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow before financing | -19.7 | -11.2 | -8.7 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Increase in non-current liabilities | 6.2 | 23.8 | 23.8 |
--------------------------------------------------------------------------------
| Decrease in non-current liabilities | -0.6 | -3.1 | -11.9 |
--------------------------------------------------------------------------------
| Changes in short-term liabilities | 8.1 | 0.9 | 3.2 |
| (increase + / decrease -) | | | |
--------------------------------------------------------------------------------
| Dividends paid | - | -3.9 | -3.9 |
--------------------------------------------------------------------------------
| Other financing | 1.4 | 1.2 | 1.2 |
--------------------------------------------------------------------------------
| Net cash flow from financing | 15.0 | 18.9 | 12.3 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect of exchange rate changes | 1.3 | 0.0 | 0.4 |
--------------------------------------------------------------------------------
| Net change in cash and cash | -3.4 | 7.6 | 4.0 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 15.6 | 11.5 | 11.5 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end | 12.2 | 19.2 | 15.6 |
| of period | | | |
--------------------------------------------------------------------------------
| Net change in cash and cash | -3.4 | 7.6 | 4.0 |
| equivalents | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| EUR million | Share | Share | Other | Reserve | Treasury | Fair |
| | capita | premiu | reserves | for | shares | value |
| | l | m | | invested | | reserve |
| | | accoun | | unrestr. | | |
| | | t | | equity | | |
--------------------------------------------------------------------------------
| Equity at 1 | 12.7 | 25.3 | - | 0.2 | -3.5 | 0.0 |
| January, 2009 | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | - | - | 0.0 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Other changes | - | - | 0.0 | - | - | - |
--------------------------------------------------------------------------------
| Other changes | - | - | - | 0.0 | 0.0 | - |
| in treasury | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 |
| September, 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | Share | Share | Other | Reserve | Treasury | Fair |
| | capital | premium | reserves | for | shares | value |
| | | account | | invested | | reserv |
| | | | | unrestr. | | e |
| | | | | equity | | |
--------------------------------------------------------------------------------
| Equity at 1 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0 |
| January, 2010 | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | - | - | 0.0 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Disposal of | - | - | - | -0.1 | 0.2 | - |
| treasury | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Other changes | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| Tax effect of | - | - | - | 0.0 | - | - |
| net income | | | | | | |
| recognized | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 12.7 | 25.3 | 0.0 | 0.1 | -3.3 | 0.0 |
| September, | | | | | | |
| 2010 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | Retained | Exchange | Equity | Non-control | Total |
| | earnings | diff. | attrib. to | ling | equity |
| | | | owners of | interest | |
| | | | the parent | | |
--------------------------------------------------------------------------------
| Equity at 1 | 89.6 | -0.5 | 123.7 | 0.1 | 123.8 |
| January, 2009 | | | | | |
--------------------------------------------------------------------------------
| Total | -26.8 | -0.7 | -27.5 | 0.0 | -27.5 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Other changes in | 0.0 | - | 0.0 | 0.3 | 0.4 |
| non-controlling | | | | | |
| interest | | | | | |
--------------------------------------------------------------------------------
| Other changes | - | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Share-based | 0.0 | - | 0.0 | - | 0.0 |
| incentive plan | | | | | |
--------------------------------------------------------------------------------
| Share-based | 0.0 | - | 0.0 | - | 0.0 |
| incentive plan, | | | | | |
| tax effect | | | | | |
--------------------------------------------------------------------------------
| Equity part of | 3.4 | - | 3.4 | - | 3.4 |
| convertible bond | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -3.9 | - | -3.9 | - | -3.9 |
--------------------------------------------------------------------------------
| Equity at 30 | 62.4 | -1.2 | 95.8 | 0.4 | 96.2 |
| September, 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | Retained | Exchange | Equity | Non-control | Total |
| | earnings | diff. | attrib. to | ling | equity |
| | | | owners of | interest | |
| | | | the parent | | |
--------------------------------------------------------------------------------
| Equity at 1 | 35.6 | -1.3 | 69.0 | 0.3 | 69.4 |
| January, 2010 | | | | | |
--------------------------------------------------------------------------------
| Total | -13.2 | 0.7 | -12.5 | 0.0 | -12.5 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Disposal of | - | - | 0.1 | - | 0.1 |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Other changes | 0.0 | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Tax effect of | - | - | 0.0 | - | 0.0 |
| net income | | | | | |
| recognized | | | | | |
| directly in | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Share-based | 0.1 | - | 0.1 | - | 0.1 |
| incentive plan | | | | | |
--------------------------------------------------------------------------------
| Share-based | 0.0 | - | 0.0 | - | 0.0 |
| incentive plan, | | | | | |
| tax effect | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity part of | 0.8 | - | 0.8 | - | 0.8 |
| convertible | | | | | |
| bond | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 23.3 | -0.6 | 57.5 | 0.3 | 57.8 |
| September, 2010 | | | | | |
--------------------------------------------------------------------------------
KEY RATIOS
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| EBITDA, as % of net sales (1 | -1.2 | -16.7 | -22.7 |
--------------------------------------------------------------------------------
| Operating profit / loss (EBIT), as % | -6.6 | -23.2 | -36.4 |
| of net sales | | | |
--------------------------------------------------------------------------------
| Net result, as % of net sales | -11.8 | -23.1 | -35.3 |
--------------------------------------------------------------------------------
| Gross capital expenditure, EUR million | 3.2 | 7.4 | 8.5 |
--------------------------------------------------------------------------------
| Gross capital expenditure, as % of net | 2.8 | 6.4 | 5.6 |
| sales | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 28.9 | 40.4 | 33.1 |
--------------------------------------------------------------------------------
| Gearing, % | 159.8 | 90.3 | 114.3 |
--------------------------------------------------------------------------------
| Net gearing, % | 138.7 | 70.3 | 91.9 |
--------------------------------------------------------------------------------
| Net interest-bearing debt, EUR million | 80.2 | 67.6 | 63.7 |
--------------------------------------------------------------------------------
| Capital employed, end of period, EUR | 150.2 | 183.0 | 148.6 |
| million | | | |
--------------------------------------------------------------------------------
| Return on equity, %, annualized | -27.7 | -32.5 | -55.5 |
--------------------------------------------------------------------------------
| Return on capital employed, %, | -8.3 | -18.8 | -32.1 |
| annualized | | | |
--------------------------------------------------------------------------------
| Number of personnel, average | 1,046 | 1,392 | 1,344 |
--------------------------------------------------------------------------------
| Number of personnel, end of period | 997 | 1,244 | 1,160 |
--------------------------------------------------------------------------------
(1 EBITDA = Operating profit / loss + depreciation, amortization and impairment.
--------------------------------------------------------------------------------
| PER SHARE DATA | | | |
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Number of shares, end of period, | 78,561 | 78,511 | 78,511 |
| treasury shares excluded (1,000) | | | |
--------------------------------------------------------------------------------
| Number of shares, average, treasury | 78,516 | 78,526 | 78,522 |
| shares excluded (1,000) | | | |
--------------------------------------------------------------------------------
| Number of shares, dilution effect of | 100 624 | 86 569 | 89 143 |
| the convertible bond taken into | | | |
| account, average, treasury shares | | | |
| excluded (1,000) | | | |
--------------------------------------------------------------------------------
| EPS, basic, EUR | -0.17 | -0.34 | -0.68 |
--------------------------------------------------------------------------------
| EPS, diluted, EUR | -0.17 | -0.34 | -0.68 |
--------------------------------------------------------------------------------
| Equity attributable to owners of the | 0.73 | 1.22 | 0.88 |
| parent per share, EUR | | | |
--------------------------------------------------------------------------------
| Price per earnings per share (P/E) | -7.6 | -3.6 | -1.6 |
| ratio | | | |
--------------------------------------------------------------------------------
| Price per equity attributable to | 1.75 | 1.02 | 1.23 |
| owners of the parent per share | | | |
--------------------------------------------------------------------------------
| Market capitalization, EUR million | 100.6 | 97.4 | 84.8 |
--------------------------------------------------------------------------------
| Share turnover, % (number of shares | 11.7 | 7.0 | 9.0 |
| traded, % of the average number of | | | |
| shares) | | | |
--------------------------------------------------------------------------------
| Number of shares traded, (1,000) | 9,175 | 5,465 | 7,033 |
--------------------------------------------------------------------------------
| Closing price of the share, EUR | 1.28 | 1.24 | 1.08 |
--------------------------------------------------------------------------------
| Highest quoted price, EUR | 1.65 | 1.44 | 1.44 |
--------------------------------------------------------------------------------
| Lowest quoted price, EUR | 1.05 | 0.92 | 0.92 |
--------------------------------------------------------------------------------
| Volume-weighted average quoted price, | 1.28 | 1.20 | 1.18 |
| EUR | | | |
--------------------------------------------------------------------------------
DEFINITIONS OF KEY RATIOS
Financial ratios
EBITDA = Profit / loss before depreciation, amortization and impairment, share
of joint ventures' and associates' results included
Operating profit (EBIT) = Profit / loss after depreciation, amortization and
impairment, share of joint ventures' and associates' results included
Cash and cash equivalents = Cash + other financial assets
Net interest-bearing debt = Interest-bearing liabilities - cash and cash
equivalents
Financial expenses = Interest expenses of financial liabilities + fees of
financing arrangements + foreign currency differences of financial liabilities
Equity ratio, % = Equity (Equity attributable to owners of the parent +
non-controlling interest) x 100 / Total assets - advance payments received
Gearing, % = Interest-bearing liabilities x 100 / Equity (Equity attributable to
owners of the parent + non-controlling interest)
Net gearing, % = Net interest-bearing debt x 100 / Equity (Equity attributable
to owners of the parent + non-controlling interest)
Return on investments, % (ROCE) = Profit / loss before taxes + financial
expenses x 100 / Equity + interest-bearing liabilities (average of 1 January
and end of the reporting period)
Return on equity, % (ROE)= Profit / loss for the reporting period x 100 /
Equity (Equity attributable to owners of the parent + non-controlling interest)
(average of 1 January and end of the reporting period)
Per share data
Earnings per share (EPS) = Net result attributable to owners of the parent /
Adjusted average number of shares
Diluted earnings per share = Net result attributable to owners of the parent
adjusted with the result effect of convertible bond / Adjusted average number of
shares, dilution effect of the convertible bond taken into account
Equity attributable to owners of the parent per share = Equity attributable to
owners of the parent at end of the period / Adjusted number of shares at end of
the period
Average trading price = Shares traded (EUR) / Shares traded (volume)
Price per earnings per share (P/E) = Share price at end of the period /
Earnings per share (EPS)
Price per equity per share = Share price at period end / Equity attributable to
owners of the parent per share
Share turnover = The proportion of number of shares traded during the period to
average number of shares
Market capitalization = Number of shares at end of the period x share price at
end of the period
Number of shares at period end = Number of issued shares - treasury shares
ACCOUNTING POLICIES
The consolidated interim financial statements of Glaston Group are prepared in
accordance with International Financial Reporting Standard IAS 34 Interim
Financial Reporting as approved by the European Union. They do not include all
of the information required for full annual financial statements.
The accounting principles applied in these interim financial statements are the
same as those applied by Glaston in its consolidated financial statements as at
and for the year ended 31 December, 2009, with the exception of the following
new or revised or amended standards and interpretations which have been applied
from 1 January, 2010:
- IFRS 3 (revised) Business Combinations
- Amendments to IAS 27 Consolidated and Separate Financial Statements.
- IFRS 2 Share-based Payments - Group Cash-settled Share-based Payment
Transactions
In addition, Glaston applies the annual Improvements to IFRSs issued in April
2009.
In accordance with the revised IFRS 3 standard all acquisition-related costs
arising from the business combinations made after 1 January 2010 are recognized
in profit or loss and not capitalized as a part of the purchase consideration,
as previously were done. In addition, all consideration transferred in the
business combination are measured at the acquisition-date fair value, and
liabilities classified as contingent consideration are subsequently measured at
fair value with any resulting gain or loss recognized in profit or loss. For
each business combination it is possible to choose, whether the non-controlling
interest is measured at fair value or as the non-controlling interest's
proportionate share of the acquiree's net assets. This choice has an effect on
the goodwill arising from the business combination.
In accordance with the revised IAS 27 standard, the effects of the transactions
made with non-controlling interests are recognized in equity, if there is no
change in control. These transactions do not result in goodwill or gains or
losses. If the control is lost, the possible remaining ownership share is
measured at fair value and the resulting gain or loss is recognized in profit or
loss. Also, in accordance with the revised standard, total comprehensive income
is attributed also to non-controlling interest even if this would result in the
non-controlling interest having a deficit balance.
The change of IAS 36 Impairment of Assets included in the annual improvements of
IFRSs changes the allocation of goodwill in Glaston. Goodwill has been allocated
to reportable segments aggregated from operating segments. According to the
change in the standard, the unit to which the goodwill can be allocated cannot
be larger than an operating segment before it is aggregated to be a part of a
reportable segment.
Other new or amended standards or interpretations applicable from 1 January,
2010 are not material for Glaston Group.
DIVESTMENTS
Glaston's joint venture, the glass processing company INTERPANE Glass Oy, was
sold to Rakla Finland Oy on 9 April, 2010.
INTERPANE Glass Oy began its operations on 1st April, 2009 and was owned jointly
by A A A Glass & Design Finland Oy and a subsidiary of Glaston Corporation. The
shareholders of INTERPANE Glass agreed on rearranging their ownership, and as a
result of the agreement 100 percent of the shares in INTERPANE Glass Oy were
sold to Rakla Finland Oy. After the rearrangement transaction, Glaston still
holds a EUR 4 million secured loan receivable in INTERPANE Glass Oy.
The result
effect of the rearrangement transaction, approximately EUR -2.6 million, has
been recognized in Glaston's result in financial expenses, thus the
rearrangement transaction has no effect on Glaston's operating result.
SEGMENT INFORMATION
The reportable segments of Glaston are Machines, Services and Software
Solutions. The reportable segments apply Glaston Group's accounting and
measurement principles. Glaston follows the same commercial terms in
transactions between segments as with third parties.
The reportable segments consist of operating segments, which have been
aggregated in accordance with the criteria of IFRS 8.12. Operating segments have
been aggregated, when the nature of the products and services is similar, the
nature of the production process is similar, as well as the type or class of
customers. Also the methods to distribute products or to provide services are
similar.
The reportable Machines segment consists of Glaston's operating segments
manufacturing glass processing machines and related tools. The Machines segment
includes manufacturing and sale of glass tempering, bending and laminating
machines sold under Tamglass and Uniglass brands, glass pre-processing machines
sold under the Bavelloni brand as well as manufacturing and sale of tools. The
sale of tools was transferred to Machines segment from Services segment during
the first quarter. Comparison information has been restated accordingly.
Services segment includes maintenance and service of glass processing machines,
machine upgrades and sale of spare parts. Services segment also provided service
to a customer by operating of glass processing factory in Akaa, Finland, on
behalf of the customer. Glaston has decided to cease the operations at the glass
processing factory.
Software Solutions segment's product offering, sold under the Albat+Wirsam
brand, covers enterprise resource planning systems for the glass industry,
software for window and door glass manufacturers, and software for glass
processor's integrated line solutions.
The unallocated operating result consists of head office operations of the Group
and unallocated share of joint venture's result.
--------------------------------------------------------------------------------
| Machines | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 18.5 | 17.2 | 71.4 | 70.2 | 92.0 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.0 | 0.0 | 0.0 | 0.5 | 0.6 |
--------------------------------------------------------------------------------
| Net sales | 18.5 | 17.3 | 71.4 | 70.6 | 92.5 |
--------------------------------------------------------------------------------
| EBIT excluding | -2.6 | -4.9 | -5.8 | -14.7 | -22.4 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | -14.0 | -28.2 | -8.1 | -20.8 | -24.2 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | - | - | -3.8 | -15.9 |
--------------------------------------------------------------------------------
| EBIT | -2.6 | -4.9 | -5.8 | -18.5 | -38.3 |
--------------------------------------------------------------------------------
| EBIT-% | -14.0 | -28.2 | -8.1 | -26.2 | -41.4 |
--------------------------------------------------------------------------------
| Net working capital | | | 35.5 | 42.4 | 34.4 |
--------------------------------------------------------------------------------
| Number of personnel, | | | 626 | 802 | 778 |
| average | | | | | |
--------------------------------------------------------------------------------
| Number of personnel, end | | | 600 | 726 | 688 |
| of period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Services | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 7.3 | 8.4 | 22.4 | 28.0 | 35.9 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.4 | 0.7 | 0.9 | 1.5 | 1.9 |
--------------------------------------------------------------------------------
| Net sales | 7.8 | 9.1 | 23.3 | 29.5 | 37.7 |
--------------------------------------------------------------------------------
| EBIT excluding | 0.6 | -0.1 | 2.1 | -2.0 | -2.4 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | 7.8 | -1.1 | 8.9 | -6.7 | -6.4 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | - | - | -0.3 | -2.8 |
--------------------------------------------------------------------------------
| EBIT | 0.6 | -0.1 | 2.1 | -2.2 | -5.2 |
--------------------------------------------------------------------------------
| EBIT-% | 7.8 | -1.1 | 8.9 | -7.6 | -13.7 |
--------------------------------------------------------------------------------
| Net working capital | | | 8.0 | 10.8 | 9.8 |
--------------------------------------------------------------------------------
| Number of personnel, | | | 176 | 310 | 291 |
| average | | | | | |
--------------------------------------------------------------------------------
| Number of personnel, end | | | 163 | 253 | 215 |
| of period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Software Solutions | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 6.0 | 5.8 | 18.1 | 17.7 | 23.9 |
--------------------------------------------------------------------------------
| Intersegment sales | 0.1 | 0.0 | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net sales | 6.1 | 5.8 | 18.1 | 17.7 | 23.9 |
--------------------------------------------------------------------------------
| Share of associates' and | 0.0 | - | 0,0 | - | 0.0 |
| joint ventures' results | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding | 0.2 | 0.5 | 1.4 | 0.6 | 0.4 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | 4.0 | 7.7 | 7.8 | 3.4 | 1.7 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | - | - | -0.3 | -1.7 |
--------------------------------------------------------------------------------
| EBIT | 0.2 | 0.5 | 1.4 | 0.3 | -1.3 |
--------------------------------------------------------------------------------
| EBIT-% | 4.0 | 7.7 | 7.8 | 1.9 | -5.5 |
--------------------------------------------------------------------------------
| Net working capital | | | 6.9 | 6.6 | 5.8 |
--------------------------------------------------------------------------------
| Number of personnel, | | | 220 | 239 | 248 |
| average | | | | | |
--------------------------------------------------------------------------------
| Number of personnel, end | | | 215 | 252 | 234 |
| of period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Glaston Group | | | | | |
--------------------------------------------------------------------------------
| EUR million | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | 18.5 | 17.3 | 71.4 | 70.6 | 92.5 |
--------------------------------------------------------------------------------
| Services | 7.8 | 9.1 | 23.3 | 29.5 | 37.7 |
--------------------------------------------------------------------------------
| Software Solutions | 6.1 | 5.8 | 18.1 | 17.7 | 23.9 |
--------------------------------------------------------------------------------
| Other and intersegment | -0.5 | -0.7 | -1.0 | -1.9 | -2.4 |
| sales | | | | | |
--------------------------------------------------------------------------------
| Glaston Group total | 31.9 | 31.5 | 111.8 | 115.9 | 151.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | -2.6 | -4.9 | -5.8 | -14.7 | -22.4 |
--------------------------------------------------------------------------------
| Services | 0.6 | -0.1 | 2.1 | -2.0 | -2.4 |
--------------------------------------------------------------------------------
| Software Solutions | 0.2 | 0.5 | 1.4 | 0.6 | 0.4 |
--------------------------------------------------------------------------------
| Other and eliminations | -1.1 | -2.9 | -5.1 | -6.5 | -9.3 |
--------------------------------------------------------------------------------
| EBIT excluding | -2.8 | -7.4 | -7.3 | -22.6 | -33.6 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | - | - | - | -4.3 | -21.6 |
--------------------------------------------------------------------------------
| EBIT | -2.8 | -7.4 | -7.3 | -26.9 | -55.3 |
--------------------------------------------------------------------------------
| Net financial items | -2.9 | -0.9 | -5.9 | -1.7 | -2.3 |
--------------------------------------------------------------------------------
| Result before income taxes | -5.7 | -8.4 | -13.3 | -28.6 | -57.6 |
| and non-controlling | | | | | |
| interest | | | | | |
--------------------------------------------------------------------------------
| Income taxes | 0.3 | -0.3 | 0.0 | 1.8 | 4.0 |
--------------------------------------------------------------------------------
| Result | -5.4 | -8.7 | -13.2 | -26.8 | -53.6 |
--------------------------------------------------------------------------------
| Number of personnel, | | | 1,046 | 1,392 | 1,344 |
| average | | | | | |
--------------------------------------------------------------------------------
| Number of personnel, end | | | 997 | 1,244 | 1,160 |
| of period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment assets | 30.09.2010 | 30.09.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Machines | 57.9 | 60.5 | 58.0 |
--------------------------------------------------------------------------------
| Services | 11.1 | 13.6 | 13.9 |
--------------------------------------------------------------------------------
| Software Solutions | 7.2 | 7.2 | 6.5 |
--------------------------------------------------------------------------------
| Other | 0.0 | 0.1 | 0.2 |
--------------------------------------------------------------------------------
| Total segment assets | 76.2 | 81.5 | 78.7 |
--------------------------------------------------------------------------------
| Other assets | 138.9 | 170.0 | 147.9 |
--------------------------------------------------------------------------------
| Total assets | 215.1 | 251.5 | 226.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment liabilities | 30.09.2010 | 30.09.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Machines | 22.3 | 18.0 | 23.7 |
--------------------------------------------------------------------------------
| Services | 3.1 | 2.8 | 4.1 |
--------------------------------------------------------------------------------
| Software Solutions | 0.3 | 0.7 | 0.7 |
--------------------------------------------------------------------------------
| Other | 0.3 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Total segment liabilities | 26.1 | 21.8 | 28.7 |
--------------------------------------------------------------------------------
| Other liabilities | 131.2 | 133.5 | 128.6 |
--------------------------------------------------------------------------------
| Total liabilities | 157.2 | 155.3 | 157.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net working capital | 30.09.2010 | 30.09.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Machines | 35.5 | 42.4 | 34.4 |
--------------------------------------------------------------------------------
| Services | 8.0 | 10.8 | 9.8 |
--------------------------------------------------------------------------------
| Software Solutions | 6.9 | 6.6 | 5.8 |
--------------------------------------------------------------------------------
| Other | -0.3 | -0.1 | 0.0 |
--------------------------------------------------------------------------------
| Total Glaston Group | 50.1 | 59.6 | 50.0 |
--------------------------------------------------------------------------------
In segment reporting net working capital consists of inventory, external trade
receivables and trade payables and advances received.
Order intake relating to Software Solutions segment was restated in the second
quarter so that it currently includes, in addition to license orders, also the
software maintenance order intake.
--------------------------------------------------------------------------------
| Order intake | | | |
--------------------------------------------------------------------------------
| EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Machines | 69.3 | 68.7 | 98.8 |
--------------------------------------------------------------------------------
| Services | 21.8 | 24.1 | 32.6 |
--------------------------------------------------------------------------------
| Software Solutions | 17.5 | 14.7 | 20.2 |
--------------------------------------------------------------------------------
| Total Glaston Group | 108.6 | 107.4 | 151.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by geographical areas | | |
--------------------------------------------------------------------------------
| EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| EMEA | 59.5 | 71.0 | 90.7 |
--------------------------------------------------------------------------------
| Asia | 24.0 | 17.7 | 24.7 |
--------------------------------------------------------------------------------
| America | 28.3 | 27.2 | 36.4 |
--------------------------------------------------------------------------------
| Total | 111.8 | 115.9 | 151.8 |
--------------------------------------------------------------------------------
QUARTERLY NET SALES, OPERATING RESULT, ORDER INTAKE AND ORDER BOOK
--------------------------------------------------------------------------------
| Machines | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 4-6/ | 1-3 | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | / | 2009 | 2009 | 2009 | 2009 |
| | | | 201 | | | | |
| | | | 0 | | | | |
--------------------------------------------------------------------------------
| External | 18.5 | 28.5 | 24. | 21.8 | 17.2 | 30.1 | 22.8 |
| sales | | | 3 | | | | |
--------------------------------------------------------------------------------
| Intersegment | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | -0.3 | 0.7 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 18.5 | 28.5 | 24. | 21.9 | 17.3 | 29.8 | 23.6 |
| | | | 3 | | | | |
--------------------------------------------------------------------------------
| EBIT | -2.6 | -1.7 | -1. | -7.7 | -4.9 | -4.6 | -5.3 |
| excluding | | | 5 | | | | |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | -14. | -5.9 | -6. | -35.0 | -28.2 | -15.4 | -22.3 |
| non-recurring | 0 | | 1 | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | - | -12.1 | - | -3.8 | - |
| items | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -2.6 | -1.7 | -1. | -19.8 | -4.9 | -8.4 | -5.3 |
| | | | 5 | | | | |
--------------------------------------------------------------------------------
| EBIT-% | -14. | -5.9 | -6. | -90.5 | -28.2 | -28.1 | -22.3 |
| | 0 | | 1 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Services | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 7.3 | 7.0 | 8.0 | 7.9 | 8.4 | 9.2 | 10.4 |
--------------------------------------------------------------------------------
| Intersegment | 0.4 | 0.2 | 0.2 | 0.4 | 0.7 | 0.6 | 0.3 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 7.8 | 7.3 | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 |
--------------------------------------------------------------------------------
| EBIT excluding | 0.6 | 0.5 | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | 7.8 | 6.6 | 12.1 | -5.5 | -1.1 | -1.7 | -16.0 |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | - | -2.5 | - | -0.3 | - |
| items | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | 0.6 | 0.5 | 1.0 | -2.9 | -0.1 | -0.4 | -1.7 |
--------------------------------------------------------------------------------
| EBIT-% | 7.8 | 6.6 | 12.1 | -35.6 | -1.1 | -4.5 | -16.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Software | | | | | | | |
| Solutions | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| External sales | 6.0 | 6.0 | 6.0 | 6.3 | 5.8 | 5.9 | 6.0 |
--------------------------------------------------------------------------------
| Intersegment | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 6.1 | 6.0 | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 |
--------------------------------------------------------------------------------
| Share of | 0.0 | - | - | 0.0 | 0.0 | 0.0 | 0.0 |
| associates' and | | | | | | | |
| joint ventures' | | | | | | | |
| results | | | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding | 0.2 | 0.5 | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| EBIT-%, excl. | 4.0 | 7.8 | 11.7 | -2.9 | 7.7 | 8.7 | -6.0 |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | - | -1.5 | - | -0.3 | - |
| items | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | 0.2 | 0.5 | 0.7 | -1.6 | 0.5 | 0.2 | -0.4 |
--------------------------------------------------------------------------------
| EBIT-% | 4.0 | 7.8 | 11.7 | -26.2 | 7.7 | 4.1 | -6.0 |
--------------------------------------------------------------------------------
Net sales
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | 18.5 | 28.5 | 24.3 | 21.9 | 17.3 | 29.8 | 23.6 |
--------------------------------------------------------------------------------
| Services | 7.8 | 7.3 | 8.2 | 8.2 | 9.1 | 9.7 | 10.7 |
--------------------------------------------------------------------------------
| Software | 6.1 | 6.0 | 6.1 | 6.3 | 5.8 | 5.9 | 6.0 |
| Solutions | | | | | | | |
--------------------------------------------------------------------------------
| Other and | -0.5 | -0.2 | -0.2 | -0.6 | -0.7 | -0.2 | -1.0 |
| intersegment | | | | | | | |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Glaston Group | 31.9 | 41.5 | 38.4 | 35.8 | 31.5 | 45.2 | 39.2 |
| total | | | | | | | |
--------------------------------------------------------------------------------
EBIT
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | -2.6 | -1.7 | -1.5 | -7.7 | -4.9 | -4.6 | -5.3 |
--------------------------------------------------------------------------------
| Services | 0.6 | 0.5 | 1.0 | -0.5 | -0.1 | -0.2 | -1.7 |
--------------------------------------------------------------------------------
| Software | 0.2 | 0.5 | 0.7 | -0.2 | 0.5 | 0.5 | -0.4 |
| Solutions | | | | | | | |
--------------------------------------------------------------------------------
| Other and | -1.1 | -2.1 | -1.9 | -2.7 | -2.9 | -1.9 | -1.6 |
| eliminations | | | | | | | |
--------------------------------------------------------------------------------
| EBIT excluding | -2.8 | -2.8 | -1.7 | -11.0 | -7.4 | -6.2 | -9.0 |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring | - | - | - | -17.3 | - | -4.3 | - |
| items | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -2.8 | -2.8 | -1.7 | -28.4 | -7.4 | -10.5 | -9.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order intake | | | | | | | |
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | 25.3 | 23.8 | 20.3 | 30.1 | 23.0 | 30.0 | 15.7 |
--------------------------------------------------------------------------------
| Services | 7.7 | 7.4 | 6.7 | 8.5 | 7.8 | 7.6 | 8.7 |
--------------------------------------------------------------------------------
| Software | 6.1 | 5.5 | 5.9 | 5.5 | 4.4 | 5.2 | 5.1 |
| Solutions | | | | | | | |
--------------------------------------------------------------------------------
| Total Glaston | 39.0 | 36.7 | 32.9 | 44.1 | 35.2 | 42.8 | 29.5 |
| Group | | | | | | | |
--------------------------------------------------------------------------------
Order book
--------------------------------------------------------------------------------
| EUR million | 30.9. | 30.6. | 31.3. | 31.12. | 30.9. | 30.6. | 31.3. |
| | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Machines | 34.7 | 25.6 | 32.4 | 39.8 | 35.8 | 30.8 | 38.2 |
--------------------------------------------------------------------------------
| Services | 1.9 | 0.9 | 0.7 | 1.6 | 1.6 | 2.3 | 4.0 |
--------------------------------------------------------------------------------
| Software | 4.0 | 3.7 | 3.8 | 4.1 | 3.5 | 4.0 | 3.7 |
| Solutions | | | | | | | |
--------------------------------------------------------------------------------
| Total Glaston | 40.7 | 30.2 | 36.9 | 45.5 | 40.9 | 37.1 | 45.9 |
| Group | | | | | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| EUR million | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Mortgages and pledges | | | |
--------------------------------------------------------------------------------
| On own behalf | 158.1 | 0.2 | 130.8 |
--------------------------------------------------------------------------------
| Guarantees | | | |
--------------------------------------------------------------------------------
| On own behalf | 0.8 | 0.7 | 0.6 |
--------------------------------------------------------------------------------
| On behalf of others | 0.1 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Lease obligations | 12.0 | 14.7 | 13.4 |
--------------------------------------------------------------------------------
| Repurchase obligations | 0.2 | 0.3 | 0.2 |
--------------------------------------------------------------------------------
| Other obligation on own behalf | 0.0 | 0.1 | - |
--------------------------------------------------------------------------------
| Capital commitments in relation to | - | 0.7 | 0.7 |
| interests in joint ventures | | | |
--------------------------------------------------------------------------------
Glaston Group has international operations and can be a defendant or plaintiff
in a number of legal proceedings incidental to those operations. The Group does
not expect the outcome of any unmentioned legal proceedings currently pending,
either individually or in the aggregate, to have material adverse effect upon
the Group's consolidated financial position or results of operations.
DERIVATIVE INSTRUMENTS
--------------------------------------------------------------------------------
| EUR million | 30.9.2010 | | 30.9.200 | | 31.12.200 | |
| | | | 9 | | 9 | |
--------------------------------------------------------------------------------
| | Nominal | Fair | Nominal | Fair | Nominal | Fair |
| | value | value | value | value | value | value |
--------------------------------------------------------------------------------
| Currency | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Currency | 2.6 | 0.1 | 2.7 | 0.0 | 2.6 | -0.1 |
| forwards | | | | | | |
--------------------------------------------------------------------------------
| Commodity | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Electricity | 0.6 | 0.1 | - | - | - | - |
| forwards | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Derivative instruments are used only for hedging purposes. Nominal
values of derivative instruments do not necessarily correspond with
the actual cash flows between the counterparties and do not therefore give a
fair view of the risk position of the Group. The fair values are based on market
valuation on the date of reporting.
PROPERTY, PLANT AND EQUIPMENT
--------------------------------------------------------------------------------
| EUR million | | | |
--------------------------------------------------------------------------------
| Changes in property, plant and | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| equipment | | | |
--------------------------------------------------------------------------------
| Carrying amount at beginning of the | 24.7 | 35.0 | 35.0 |
| period | | | |
--------------------------------------------------------------------------------
| Additions | 0.5 | 1.2 | 1.2 |
--------------------------------------------------------------------------------
| Disposals | -0.4 | -5.3 | -6.2 |
--------------------------------------------------------------------------------
| Depreciation and amortization | -2.6 | -3.1 | -4.1 |
--------------------------------------------------------------------------------
| Impairment losses and reversals of | -0.2 | -1.0 | -1.2 |
| impairment losses | | | |
--------------------------------------------------------------------------------
| Reclassification and other changes | -0.3 | 0.5 | -0.1 |
--------------------------------------------------------------------------------
| Exchange differences | 0.4 | -0.1 | 0.0 |
--------------------------------------------------------------------------------
| Carrying amount at end of the | 22.1 | 27.1 | 24.7 |
| period | | | |
--------------------------------------------------------------------------------
At the end of the review period, Glaston Group did not have contractual
commitments to acquire property, plant and equipment.
SHAREHOLDER INFORMATION
Largest shareholders 30 September, 2010
--------------------------------------------------------------------------------
| | Shareholder | Number of | % of shares and |
| | | shares | votes |
--------------------------------------------------------------------------------
| 1 | GWS Trade Oy | 13,446,700 | 17.0 |
--------------------------------------------------------------------------------
| 2 | Oy G.W.Sohlberg Ab | 12,819,400 | 16.2 |
--------------------------------------------------------------------------------
| 3 | Sumelius Birgit | 3,644,200 | 4.6 |
--------------------------------------------------------------------------------
| 4 | Fondita Nordic Micro Cap | 2,350,000 | 3.0 |
| | Investment Fund | | |
--------------------------------------------------------------------------------
| 5 | Oy Investsum Ab | 1,820,000 | 2.3 |
--------------------------------------------------------------------------------
| 6 | Suutarinen Helena Estate | 1,802,400 | 2.3 |
--------------------------------------------------------------------------------
| 7 | Von Christierson Charlie | 1,600,000 | 2.0 |
--------------------------------------------------------------------------------
| 8 | Investment Fund Aktia Capital | 1,484,650 | 1.9 |
--------------------------------------------------------------------------------
| 9 | Sumelius Bjarne Henning | 1,225,936 | 1.6 |
--------------------------------------------------------------------------------
| 10 | Sumelius-Koljonen Barbro | 1,206,875 | 1.5 |
--------------------------------------------------------------------------------
| 11 | Sumelius-Fogelholm Birgitta | 1,014,000 | 1.3 |
| | Christin | | |
--------------------------------------------------------------------------------
| 12 | Sumelius Bertil Christer | 803,800 | 1.0 |
--------------------------------------------------------------------------------
| 13 | Huber Karin | 800,800 | 1.0 |
--------------------------------------------------------------------------------
| 14 | Evli Alexander Management Oy | 788,582 | 1.0 |
--------------------------------------------------------------------------------
| 15 | ABN Amro Small Cap Mutual Fund | 670,000 | 0.8 |
--------------------------------------------------------------------------------
| 16 | Fontell Niilo Armas | 640,700 | 0.8 |
--------------------------------------------------------------------------------
| 17 | Nordea Life Assurance Finland Ltd. | 635,207 | 0.8 |
--------------------------------------------------------------------------------
| 18 | Pihkala-Vlassis Anna Marja | 615,520 | 0.8 |
--------------------------------------------------------------------------------
| 19 | Paloheimo Arvi Martin-Brand | 510,000 | 0.6 |
--------------------------------------------------------------------------------
| 20 | Special Investment Fund EQ | 500,000 | 0.6 |
| | Pikkujättiläiset | | |
--------------------------------------------------------------------------------
| | Total 20 largest shareholders | 48,378,770 | 61.0 |
--------------------------------------------------------------------------------
| | Other shareholders | 30,896,030 | 38.9 |
--------------------------------------------------------------------------------
| | Not in the book-entry securities | 75,200 | 0.1 |
| | system (joint account) | | |
--------------------------------------------------------------------------------
| | Total | 79,350,000 | 100.0 |
--------------------------------------------------------------------------------
| | Treasury shares | -788,582 | 1.0 |
--------------------------------------------------------------------------------
| | Total excluding treasury shares | 78,561,418 | |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
Glaston Group's related parties include the parent, subsidiaries, associates and
joint ventures. Related parties also include the members of the Board of
Directors and the Group's Executive Management Group, the CEO and their family
members.
Glaston follows the same commercial terms in transactions with associates and
joint ventures and other related parties as with third parties.
During the review period Glaston's related party transactions included leasing
of premises to a joint venture. In addition, the Group has leased premises from
companies owned by individuals belonging to the management. The lease payments
were in January - September EUR 0.5 (0.5) million.
During the review period there were no other related party transactions whose
terms would differ from the terms in transactions with third parties than what
has been described in section “Transactions with joint ventures and associates”.
Share-based payments
The Board of Directors of Glaston Corporation decided in June, 2010, a new
share-based incentive plan to form a part of the long-term incentive and
commitment program for the top management of Glaston.
The share-based incentive plan offers the participants a possibility to earn
Glaston's shares as remuneration for achieving established earning criteria. The
plan has one earning period covering the years 2010 and 2011, and the earnings
criteria is the development of the consolidated operating profit of Glaston. A
possible award shall be paid after the release of the 2011 financial statements
in spring 2012.
An aggregate gross maximum number of Glaston shares granted under the plan is
approximately 2.5 million shares. Income taxes and other statutory costs arising
from the award will be deducted from the gross number of shares before share
delivery.
In accordance with the terms of the CEO's share-based incentive plan, Glaston's
CEO Arto Metsänen received in September 50 000 shares in Glaston Corporation.
The fair value of the shares was 65 500 EUR. The shares cannot be transferred
further within two years from the reward payment date.
The expenses arising from Glaston's share-based incentive plans were EUR 0.2
(0.2) million during the review period.
Transactions with joint ventures and associates
Glaston had leased property to the joint venture during the review period in
January - April.
The shares in INTERPANE Glass Oy were sold to Rakla Finland Oy on 9 April, 2010.
As a part of the ownership arrangement, Glaston waived its rights to EUR 3.3
million of the loan granted to INTERPANE Glass Oy. The result effect of the
waiver of the loan is included in the appr. EUR 2.6 million financial expense
booked from the arrangement.
Glaston did not have transactions with the associate.
--------------------------------------------------------------------------------
| Transactions with joint ventures and joint venture balances |
--------------------------------------------------------------------------------
INTERPANE Glass Oy was Glaston's joint venture during 31 March, 2009 - 9 April,
2010.
--------------------------------------------------------------------------------
| EUR million | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Sales to joint ventures | - | - | 0.0 |
--------------------------------------------------------------------------------
| Other operating income from joint | 0.1 | 0.2 | 0.3 |
| ventures | | | |
--------------------------------------------------------------------------------
| Interest income from joint ventures | 0.1 | 0.2 | 0.3 |
--------------------------------------------------------------------------------
| Other financial expenses | -3.3 | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Receivables and liabilities with | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| joint ventures | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current receivables | - | 0.7 | 1.2 |
--------------------------------------------------------------------------------
| Non-current loan receivables | - | 5.8 | 5.9 |
--------------------------------------------------------------------------------
| Trade payables | - | 0.0 | 0.1 |
--------------------------------------------------------------------------------
