Glaston initiates co-operation negotiations in its Finnish units due to weakening demand in heat treatment equipment - outlook for 2019 remains unchanged
Glaston Corporation Inside information 2 October 2019 at 9 am EET
Glaston Corporation initiates co-operation negotiations concerning measures to adapt the Glaston segment’s operations to lower than expected heat treatment equipment demand. The adaptation measures concern all companies in Finland within the Glaston segment. The co-operation negotiations concern both temporary lay-offs and termination of employment contracts. The company estimates that the negotiations could lead to the termination of approximately 20 employment contracts. These measures, in combination with other profitability improving actions, target savings of approximately EUR 2 million.
Demand for heat treatment equipment has been weak during the end of the summer and according to the company’s preliminary calculations the third quarter order intake for the Heat Treatment Technologies will be lower than expected and approximately 20% lower than in the corresponding period 2018. Demand for insulation equipment has remained strong and demand for Services has also remained at a good level. Final third quarter order intake figures and market information will be provided in Glaston Corporation’s third quarter interim report which will be published on 28 October.
Based on the aforementioned measures, other profitability improving actions as well as faster than planned integration of Bystronic glass, the company’s full-year 2019 profitability guidance remains unchanged. The Glaston segment’s 2019 full-year profit will be skewed towards the fourth quarter.
Glaston Corporation estimates its 2019 comparable pro forma EBITA to be at the 2018 level or to slightly improve (2018 comparable pro forma EBITA EUR 11.5 million).
At the end of June, The Glaston segment employed 208 employees in its units in Finland. The co-operation negotiations are expected to be concluded by the end of November.
For more information:
CFO Päivi Lindqvist, tel. + 358 40 708 5351
VP IR, Communications and Marketing Joséphine Mickwitz, tel. +358 10 500 5070
Glaston in brief
Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and appliance industries. The company also supports the development of emerging technologies integrating intelligence to glass.
As of April 2019, Bystronic glass is part of Glaston Group. Together we are committed to providing our clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. We operate globally with manufacturing, services and sales offices in 12 countries. Glaston’s shares (GLA1V) are listed on NASDAQ Helsinki Ltd.
Distribution: Nasdaq Helsinki Ltd, key media, www.glaston.net.