Glaston’s interim report January–September 2024: Another solid quarter despite an uncertain environment
GLASTON CORPORATION INTERIM REPORT 30.10.2024 AT 8.30
This release is a summary of Glaston Corporation's January-September 2024 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 2024 IN BRIEF
- Orders received totaled EUR 52.8 (52.2) million
- Net sales totaled EUR 55.4 (53.5) million
- Comparable EBITA was EUR 4.2 (3.9) million, i.e. 7.5 (7.3)% of net sales
- The operating result (EBIT) was EUR 2.2 (1.7) million
- Comparable earnings per share were EUR 0.028 (0.026)
JANUARY─SEPTEMBER 2024 IN BRIEF
- Orders received totaled EUR 149.6 (162.7) million
- Net sales totaled EUR 161.1 (160.0) million
- Comparable EBITA was EUR 11.0 (10.3) million, i.e. 6.8 (6.4)% of net sales
- The operating result (EBIT) was EUR 5.2 (5.5) million
- Comparable earnings per share were EUR 0.067 (0.065)
GLASTON’S OUTLOOK FOR 2024:
The cautious development in the architectural glass processing equipment market continued in the third quarter and the market is expected to remain soft during the rest of the year. For mobility glass processing equipment, the market in China has been in a growth mode but is expected to be volatile. Amid global economic uncertainty and continued geopolitical tensions, higher-than-normal uncertainty exists concerning customers’ decision-making.
Glaston Corporation estimates that its net sales will stay at the same level as in 2023. Comparable EBITA is estimated to amount to EUR 14.5−16.0 million. The net sales growth is curbed by the delayed market recovery whereas the on-going structural cost-saving actions support profitability. In 2023, Group net sales totaled EUR 219.7 million and comparable EBITA was EUR 14.9 million.
PRESIDENT & CEO TONI LAAKSONEN:
“Glaston performed well in the third quarter despite the challenging market environment. The cautious development in the Architectural market continued, which, in particular, affected the EMEA and Americas regions. In China, the activity in pre-processing technologies was good.
The third-quarter order intake was EUR 52.8 million, up by 5% compared to the previous quarter and on the same level as in the July−September period in 2023. Received orders in the Mobility, Display and Solar segment were up by 59% and compensated for the 13% decline in the Architecture segment. The order intake for Tempering and Laminating Technologies increased by 72% from a very low comparison period, whereas order intake for Insulating Glass Technologies fell 48% year-on-year. Service’s order intake saw an increase of 6%.
Net sales were up by 4% to EUR 55.4 million driven by growth in Insulating Glass Technologies and Mobility, Display and Solar Technologies. Service’s net sales were on the same level as in the comparison period and its share of net sales was 38%. Profitability continued to improve. Comparable EBITA was up by 7% year-on-year to EUR 4.2 million, corresponding to a margin of 7.5%.
Currently, Asia is clearly the fastest-developing mobility market. Aiming at further streamlined global production and improved operational efficiency as well as improved capability to serve our customers globally close to their markets, we started the transfer of all production of pre-processing equipment from Glaston Switzerland to our factory in Tianjin, China. Since the announcement in August, the actions have progressed as planned and currently, the inventory shipment to Tianjin is in progress. In Switzerland, a consultation procedure with employee representatives has been completed and the social plan agreed upon. As a result, approximately 30 employees in Switzerland will leave the company by the end of 2025.
My first quarter at Glaston and the glass processing industry can be summarized as very positive. I have had the opportunity to meet many Glaston teams and customers worldwide. Glaston has numerous strengths to stand on. I have noticed the process and technology know-how that spreads through the company as well as the vast competence of our employees. When meeting with customers, I have received positive feedback for, in particular, our technology expertise, products and innovations - many of them developed in cooperation with our customers and partners. On this note, we have joined forces with Corning Incorporated, one of the world’s leading innovators in materials science, for ultra-thin glass processing, utilizing Glaston’s new processing method suitable for installing thin glass into triple-insulating glass units. Thin triple insulating glass generates high interest due to its sustainable and environmentally friendly end product advantages.
During my first weeks in my role, I have also identified opportunities, such as further improvement in operational excellence and efficiency, not to forget the many opportunities for the Services business growth.
Today, we announced a plan for organizational changes to further accelerate strategy execution. With industry-leading customer support and service as our goal, we will strengthen our resources in the customer interface and increase our investments in service capabilities. We will continue optimizing our global operations and supply chain to accelerate profitability development and reach additional operational efficiencies.
For the final quarter, we expect market activity to remain slow. Supported by our product development investments and new product launches, our top priorities for the rest of the year are securing the order intake and project deliveries according to expectations.”
GLASTON GROUP’S KEY FIGURES
| MEUR | 7-9/ 2024 |
7-9/ 2023 |
Change% | 1-9/ 2024 |
1-9/ 2023 |
Change % |
1-12/ 2023 |
| Orders received | 52.8 | 52.2 | 1.2% | 149.6 | 162.7 | 8.0% | 220.3 |
| of which service operations | 19.3 | 18.2 | 5.5% | 57.0 | 54.2 | 5.1% | 74.4 |
| of which service operations, % | 36.5% | 35.0% | 38.1% | 33.3% | 33.8% | ||
| Order book at end of period | 101.7 | 112.3 | -9.4% | 101.7 | 112.3 | -9.4% | 106.5 |
| Net sales | 55.4 | 53.5 | 3.6% | 161.1 | 160.0 | 0.7% | 219.7 |
| of which service operations | 21.1 | 20.9 | 1.0% | 57.8 | 56.0 | 3.1% | 76.0 |
| of which service operations, % | 38.0% | 39.0% | 35.8% | 35.0% | 34.6% | ||
| EBITDA | 4.3 | 3.6 | 20.1% | 11.5 | 11.0 | 4.2% | 15.7 |
| Items affecting comparability (1 | 0.9 | 1.4 | -32.1% | 2.7 | 2.4 | 13.6% | 3.3 |
| Comparable EBITDA | 5.2 | 4.9 | 5.6% | 14.2 | 13.4 | 5.9% | 19.0 |
| Comparable EBITDA, % | 9.4% | 9.3% | 8.8% | 8.4% | 8.7% | ||
| Comparable EBITA | 4.2 | 3.9 | 6.9% | 11.0 | 10.3 | 6.9% | 14.9 |
| Comparable EBITA, % | 7.5% | 7.3% | 6.8% | 6.4% | 6.8% | ||
| Operating result (EBIT) | 2.2 | 1.7 | 30.8% | 5.2 | 5.5 | -5.7% | 8.1 |
| Profit/loss for the period | 1.3 | 0.8 | 62.5% | 2.7 | 2.8 | -4.2% | 5.0 |
| Comparable earnings per share, EUR | 0.028 | 0.026 | 7.3% | 0.067 | 0.065 | 2.8% | 0.104 |
| Cash flow from operating activities | 8.8 | 1.4 | 529.1% | -2.0 | 2.5 | -181.1% | 16.3 |
| Return on capital employed (ROCE), %, (annualized) | 7.0% | 7.2% | - | 8.1% | |||
| Comparable return on capital employed (ROCE), %, (annualized) | 11.0% | 10.9% | 12.7% | ||||
| Equity ratio, % | 43.8% | 43.8% | 45.2% | ||||
| Net gearing, % | 32.2% | 32.3% | 15.8% | ||||
| Number of employees at end of period | 800 | 803 | -0.4% | 802 |
- + cost, - income
ANALYST AND PRESS MEETING
Glaston’s CEO Toni Laaksonen 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 webcast can be accessed through the link: https://glaston.videosync.fi/q3-2024.
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 Toni Laaksonen, 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, mobility, display and solar 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 nine countries and its shares (GLA1V) are listed on Nasdaq Helsinki Ltd.
Distribution: Nasdaq Helsinki Ltd, key media, www.glaston.net.