Glaston Corporation recognizes impairment loss of goodwill and revises forecast
Glaston Corporation Stock Exchange Release 25 April 2012 at 16.00
Glaston Corporation recognizes impairment loss of goodwill and revises forecast
The sensitivity analyses of the goodwill impairment testing of the Pre-processing operating segment made at the end of 2011 and published in the 2011 consolidated financial statements indicated that there was a possibility for impairment of goodwill in case the actual cash flows would differ from estimated cash flows. Glaston has during 2012 monitored continuously the performance of this operating segment and performed impairment testing of goodwill based on updated forecasts. As a result of the test, the Board of Directors of Glaston has decided in its meeting on April 25, 2012 to recognize an impairment loss of EUR 3.0 million in the Pre-processing operating segment within the Machines segment.
For other segments impairment tests have been performed, if during the beginning of the year there have been indications of a possible impairment loss.These impairment results did not result in recognition of goodwill impairment loss in the other segments.
The impairment loss of goodwill has no cash flow effect and it will be recognized in Glaston’s first quarter result as a non-recurring item.
The forecast, published in February 2012 remains unchanged regarding net sales, and Glaston expects that 2012 net sales will be at least at the 2011 level. The forecast for operating result is revised so that the operating result excluding non-recurring items is expected to be positive. Earlier Glaston forecasted that the operating result was expected to be positive.
Glaston Corporation will publish its January–March 2012 Interim Report on 3 May, 2012.
For further information, please contact:
CFO Tapio Engström, phone. +358 10 500 500
GLASTON CORPORATION
Agneta Selroos
Director, Communications and Marketing
Glaston Corporation
Glaston Corporation is an international glass technology company and a pioneer of glass processing technology. Its product range and service network are the widest 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 glass industry software. Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki Small Cap List.
Distribution: NASDAQ OMX, media, www.glaston.net