Glaston Interim Report 1 January – 31 March 2014: A quiet start to the year, order book grew

Glaston Corporation              INTERIM REPORT                 23 April 2014 at 14.00

Glaston Corporation is adopting a new disclosure procedure in accordance with Regulations and Guidelines 7/2013 (disclosure obligation on issuers) of the Financial Supervisory Authority and is publishing the interim report for January-March 2014 as an attachment to this stock exchange release. This release is a summary of Glaston's January-March 2014 interim report. Glaston Corporation’s interim report for January-March 2014 is a PDF file attachment to this stock exchange release and is available on the company’s website at the address www.glaston.net.

Key points January-March 2014

• Orders received in January-March totalled EUR 26.4 (28.8) million.
• The order book on 31 March 2014 was EUR 41.3 (39.4) million.
• Consolidated net sales in January-March totalled EUR 23.1 (26.4) million.
• EBITDA, excluding non-recurring items, was EUR 0.4 (0.8) million, i.e. 1.7 (3.0)% of net sales.
• The operating result, excluding non-recurring items, was a loss of EUR 0.7 (0.4 loss) million, i.e. -3.2 (-1.4)% of net sales.
• The operating result was a loss of EUR 0.7 (3.4 profit) million, i.e. -3.2 (12.8)% of net sales.
• Continuing Operations’ return on capital employed (ROCE) was -3.7 (28.9)%.
• Continuing Operations’ earnings per share were EUR -0.00 (0.04). Continuing and Discontinued Operations’ earnings per share were EUR -0.00 (0.04).
• Glaston’s interest-bearing net debt totalled EUR 9.0 (10.5) million.
• Glaston expects net sales and operating profit to grow in 2014.

President and CEO Arto Metsänen
“Seasonal fluctuations are typical in Glaston’s industry and the first quarter is traditionally quiet. Both the crisis in Ukraine and particularly its impact on neighbouring areas as well as a quiet market in Brazil affected order intake in the early part of the year.

Glaston’s net sales in the review period totalled EUR 23.1 million and the operating result, excluding non-recurring items, was a loss of EUR 0.7 million. Compared with the corresponding period of the previous year, our relative profitability has developed positively due to a lighter cost structure.

Our order book has developed positively and stood at EUR 41.3 million on 31 March 2014. Deliveries resulting from last year’s good order intake will be made after the first quarter. This will create a foundation for a positive performance in 2014. We continue to expect that the market will grow moderately this year.

The Asian market is expected to grow in the long term. As a technology leader, Glaston wants to be well positioned when demand for low emissivity (Low-E) glass and high-quality glass starts to grow. To respond to market needs, we will expand our factory located in Tianjin. The expansion is expected to be completed in autumn 2015.”

Markets
In the first quarter of 2014, Glaston’s markets were relatively quiet at the start of the review period. A pick-up was perceptible, however, towards the end of the review period. Development was stable in the North American and Asian markets. In the EMEA area, the challenging market situation continued. The development of the South American market slowed. 

The market situation of the Machines segment was satisfactory during the first quarter of 2014. In the pre-processing machine market, the difficult market situation continued due to intensifying competition and aggressive pricing. The crisis in Ukraine and the weakness of the Russian rouble affected sales of pre-processing and heat treatment machines.

The Services segment market was subdued during January and February, but a significant pick-up was perceptible in the final month of the review period.

Outlook
Glaston still expects the market overall to grow moderately in 2014. We believe that stable development will continue in Asia. The recovery in the North American market will continue. In South America, the development of the market has slowed. The biggest challenges are in the EMEA area and particularly in Southern and Eastern Europe, where the political situation in Ukraine is causing uncertainty in neighbouring areas.

Glaston operates in growing product and service markets and the company’s financial situation is stable. Drivers of growth include increasing use of safety glass, more widespread utilisation of energy-saving glass in both renovations and new construction, and greater use of glass in construction generally. In accordance with our new strategy, we will increasingly focus on enhancing customer benefit and customer experience as well as on traditional key areas of expertise, namely glass processing machines and related services covering the entire lifecycle of products.

Glaston expects net sales and operating profit to grow in 2014.
 
Press meeting
An analyst and press conference is organized at Glaston’s office on Yliopistonkatu 7, Helsinki, on 23 April 2014 at 15.00 p.m.

Disclosure procedure
Glaston Corporation is adopting a new disclosure procedure in accordance with Regulations and Guidelines 7/2013 (disclosure obligation on issuers) of the Financial Supervisory Authority and is publishing the interim report for January-March 2014 as an attachment to this stock exchange release. Glaston Corporation’s interim report for January-March 2014 is a PDF file attachment to this stock exchange release and is available on the company’s website at the address www.glaston.net.

For further information, please contact:
President & CEO Arto Metsänen, tel. +358 10 500 6100
Chief Financial Officer Sasu Koivumäki, tel. +358 10 500 500

GLASTON CORPORATION
Agneta Selroos
Director, Communications and Marketing
 

Glaston Corporation
Glaston is a global company developing glass processing technology for architectural, solar, appliance and automotive applications. Our product portfolio ranges from pre-processing and safety glass machines to services. We are dedicated to our customers' continued success and provide services for all glass processing needs with a lifecycle-long commitment in mind. Further information is available at www.glaston.net. Glaston’s share (GLA1V) is listed on the NASDAQ OMX Helsinki Small Cap List.

Distribution: NASDAQ OMX, key media, www.glaston.net