Glaston’s interim report January–September 2022: Record high order intake at EUR 86.2 million in Q3
GLASTON CORPORATION INTERIM REPORT 27.10.2022 AT 8.30
This release is a summary of Glaston Corporation's January-September 2022 interim report. The complete report is attached to this release as a pdf-file. The release is also available on the company's website at the address www.glaston.net.
JULY–SEPTEMBER 2022 IN BRIEF
- Orders received totaled EUR 86.2 (45.4) million
- Net sales totaled EUR 47.9 (46.4) million
- Comparable EBITA was EUR 2.5 (3.2) million, i.e. 5.1 (6.9)% of net sales
- The operating result (EBIT) was EUR 1.2 (2.3) million
- Comparable earnings per share were EUR 0.011 (0.019)
JANUARY─SEPTEMBER 2022 IN BRIEF
- Orders received totaled 201.4 (157.1) million
- Net sales totaled EUR 153.7 (130.1) million
- Comparable EBITA was EUR 9.4 (7.6) million, i.e. 6.1 (5.9)% of net sales
- The operating result (EBIT) was EUR 5.2 (3.9) million
- Comparable earnings per share were EUR 0.053 (0.038)
GLASTON SPECIFIES OUTLOOK FOR 2022
In the third quarter, overall demand in most of Glaston’s markets remained strong, which indicates good development for machines and services businesses for the coming quarters. Glaston began 2022 with a solid order backlog. The strong order intake in January−September further supports Glaston’s 2022 full-year net sales and profitability development. Costs and capital expenditure related to the execution of the updated Group strategy, announced in August 2021, will occur ahead of the effect on revenue growth.
Contrary to the overall strong market demand, inflation, energy cost increases, raw material prices, and the slowdown in economic growth are causing hesitation among some customers in their investment decisions. Supply chain disturbances are expected to continue, which means higher than normal uncertainty over Glaston’s short-term net sales and profitability development. Despite an improved situation, the impact of the COVID-19 pandemic cannot be fully ruled out, especially in China.
Taking into account the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2022 from the levels reported for 2021 and comparable EBITA will increase to EUR 12−14 million. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.
(Previous outlook: Despite the prevailing uncertainties, Glaston Corporation estimates that its net sales will increase in 2022 from the levels reported for 2021 and specifies its outlook for comparable EBITA, which is estimated to increase to EUR 12−15 million. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.)
PRESIDENT & CEO ANDERS DAHLBLOM:
“Amid increasing uncertainty in the global business environment, the majority of Glaston’s markets continued to perform well in the third quarter, and we set a new clear record in order intake at EUR 86.2 (45.4) million. In particular, one order valued at EUR 31 million significantly contributed to the outcome. That said, even without this order, the quarterly order intake exceeded our historical quarterly average. Third-quarter net sales growth slowed down from previous quarters as component shortages continued to burden our operations. The Insulating Glass and Automotive & Display segments achieved good year-on-year development, whereas Heat Treatment’s net sales declined. Third-quarter comparable EBITA was EUR 2.5 million, with a slightly lower margin than previous quarters as net sales did not reach the same level.
Market activity for the Services business remained positive with daily flow services continuing strong in all regions. As customers’ machine utilization was high and machines were regularly maintained for consistent performance, spare parts saw solid growth. In addition, field services grew as most countries have eased their COVID-19 travel restrictions. Despite continued component shortages and long delivery times, Services net sales in the third quarter increased by 8%.
The supply chain situation remained challenging and a rapid turn for the better is not in sight. Our efforts to manage the situation have increased, which means resources are tied up as additional work and re-planning are carried out on a daily basis ultimately impacting negatively on efficiency and costs.
During the quarter, we continued our good progress with strategy implementation. Taking full advantage of our diverse offering, we were able to close the above-mentioned EUR 31 million deal when our customer decided to expand the existing cooperation within tempering technologies into insulating glass. Our strategic focus to grow our business in China is the foundation of our plan to establish the production of Automotive pre-processing equipment for standard products at the factory in Tianjin. Since the announcement of the plan in June, we have made a strong entry into the Automotive market by securing orders for a standard pre-processing line. With shipments scheduled for 2023, these Automotive lines will be the first to be delivered from Tianjin.
Another strategic step was also taken in the third quarter as we entered the market of tempering technologies for solar panel production in China with the CHF Solar line, a new flat tempering line for solar panel tempering. In September, we had our first win for this new concept as we signed a contract for five lines with a Chinese customer, who already operates close to 20 Glaston insulating glass lines.
During the review period, our markets remained healthy despite the increasing overall global economic uncertainty and this has resulted in a good order intake for the quarter and also the full year 2022.”
GLASTON GROUP’S KEY FIGURES
| MEUR | 7−9/2022 | 7−9/2021 | Change% | 1−9/2022 | 1−9/2021 | Change% | 1−12/2021 |
| Orders received | 86.2 | 45.4 | 89.9% | 201.4 | 157.1 | 28.2% | 216.2 |
| of which service operations | 16.0 | 16.2 | -1.2% | 54.0 | 50.5 | 6.9% | 68.0 |
| of which service operations, % | 18.6% | 35.7% | 26.8% | 32.2% | 31.4% | ||
| Order book at end of period | 142.3 | 86.1 | 65.3% | 142.3 | 86.1 | 65.3% | 94.8 |
| Net sales | 47.9 | 46.4 | 3.3% | 153.7 | 130.1 | 18.2% | 182.7 |
| of which service operations | 19.2 | 17.9 | 7.6% | 55.3 | 49.2 | 12.4% | 66.8 |
| of which service operations, % | 40.2% | 38.6% | 36.0% | 37.8% | 36.5% | ||
| EBITDA | 3.0 | 4.3 | -29.0% | 11.0 | 9.8 | 12.1% | 13.0 |
| Items affecting comparability1) | 0.4 | -0.2 | 285.2% | 1.4 | 0.3 | 367.1% | 1.5 |
| Comparable EBITDA | 3.5 | 4.1 | -14.8% | 12.4 | 10.1 | 22.8% | 14.5 |
| Comparable EBITDA, % | 7.2% | 8.8% | 8.1% | 7.8% | 7.9% | ||
| Comparable EBITA | 2.5 | 3.2 | -23.1% | 9.4 | 7.6 | 23.7% | 11.1 |
| Comparable EBITA, % | 5.1% | 6.9% | 6.1% | 5.9% | 6.1% | ||
| Operating result (EBIT) | 1.2 | 2.3 | -48.4% | 5.2 | 3.9 | 30.6% | 5.1 |
| Profit/loss for the period | 0.2 | 1.3 | -86.6% | 1.8 | 1.0 | -83.1% | 1.1 |
| Earnings per share, EUR | 0.002 | 0.015 | -86.6% | 0.021 | 0.011 | -83.1% | 0.013 |
| Comparable earnings per share, EUR | 0.011 | 0.019 | -42.1% | 0.053 | 0.038 | 41.4% | 0.060 |
| Cash flow from operating activities | 3.8 | -0.5 | 860.0% | 1.4 | 13.8 | -89.9% | 19.3 |
| Return on investment (ROI), %, (annualized) | 6.1% | 4.5% | 2.8% | ||||
| Comparable return on capital employed (ROCE), %, (annualized) | 8.9% | 6.9% | 6.1% | ||||
| Equity ratio, % | 64.4% | 42.4% | 42.3% | ||||
| Net gearing, % | 27.0% | 33.6% | 26.9% | ||||
| Number of employees at end of period | 780 | 743 | 5.0% | 750 |
(1 + cost, - income
ANALYST AND PRESS MEETING
Glaston’s CEO Anders Dahlblom and CFO Päivi Lindqvist will present the financial result to analysts, investors and media representatives today at 11:00 (Finnish time) in English. The live audiocast can be accessed through the link: https://glaston.videosync.fi/q3-2022-results
An on-demand version of the presentation will be available on the company's website later during the same day.
For further information, please contact:
President & CEO Anders Dahlblom, tel. +358 10 500 500
Chief Financial Officer Päivi Lindqvist, tel. +358 10 500 500
GLASTON CORPORATION
Pia Posio
VP, Communications, Marketing and IR
Tel. +358 10 500 5076
Glaston in brief
Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and display industries. The company also supports the development of new technologies integrating intelligence to glass.
Glaston is committed to providing its 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. Glaston operates globally with manufacturing, services and sales offices in 10 countries and its shares (GLA1V) are listed on NASDAQ Helsinki Ltd.
Distribution: Nasdaq Helsinki Ltd, key media, www.glaston.net.