Glaston Interim Report 1 January – 30 September 2015: Net sales grew, profitability improved

This release is a summary of Glaston Corporation’s Interim Report for January-September 2015. The complete report is attached to this release as a pdf-file. The stock exchange release is also available on the company’s website at the address www.glaston.net .  

CHANGE IN REPORTING
In the second quarter, Glaston sold 100% of the shares of Glaston Italy S.p.A., which specialised in pre-processing operations. As a result, Glaston reassessed its reporting segments and, as of 1 July 2015, combined the operating segments into a single reporting segment. This interim report has been prepared in accordance with the new segment structure.

As of the second quarter of 2015, pre-processing machines business has been classified in Discontinued Operations. Comments in the text refer only to Continuing Operations. Income statement comparison figures have been restated.

JULY-SEPTEMBER 2015

• Orders received totalled EUR 28.2 (32.1) million.
• Net sales totalled EUR 34.3 (21.9) million.
• The comparable operating profit, excluding non-recurring items, was EUR 2.5 (1.1) million.¹⁾
• The comparable operating profit was EUR 2.4 (1.1) million, i.e. 7.0% (5.1%) of net sales.¹⁾

JANUARY-SEPTEMBER 2015

• Orders received totalled EUR 83.2 (81.6) million.
• The order book on 30 September 2015 was EUR 47.8 (41.7) million.
• Net sales totalled EUR 90.8 (73.1) million.
• The comparable EBITDA was EUR 7.8 (4.8) million, i.e. 8.6 (6.6)% of net sales.¹⁾
• The comparable operating profit, excluding non-recurring items, was EUR 5.5 (2.6) million.¹⁾
• The comparable operating profit was EUR 5.2 (1.9) million, i.e. 5.7% (2.6%) of net sales.¹⁾
• Continuing Operations’ return on capital employed (ROCE) was 18.6 (12.9)%.<
• Continuing Operations’ earnings per share were EUR 0.01 (0.03).
• Interest-bearing net liabilities amounted to EUR 5.2 (9.5) million.

¹⁾ Due to the sale of the pre-processing machines business, internal purchases eliminated in the comparison figures up to 30 June 2015 change from 1 July 2015 to external purchases. This impacts the comparability of Continuing Operations’ operating profit. In Continuing Operations’ comparable operating profit, those internal items that in future will be external items have been restated.

PRESIDENT & CEO ARTO METSÄNEN:
“The third quarter was good in terms of net sales growth. Compared with the corresponding period of the previous year, net sales grew by 57% to EUR 34.3 million. Both the Machines business and the Services business increased their net sales. Growth was mainly in North America, where net sales increased by 60% compared with July-September 2014, and in the EMEA, where net sales grew by 25%. The Asian market, too, showed signs of recovery. Our profitability improved, and the comparable operating profit, excluding non-recurring items, was EUR 2.5 million. Profitability was improved by increased net sales, although fixed costs relating to pre-processing business will adversely affect the year-end result. In respect of these, corrective measures are under way.

The positive mood that prevailed in the EMEA area deteriorated during the summer. This was reflected in third-quarter orders received, which totalled EUR 28.2 (32.1) million. The order book on 30 September, however, was better than the previous year, EUR 47.8 (41.7) million. We expect order flow to increase slightly during the latter part of the year.

In the third quarter, we initiated measures in South America and Asia to restructure our operations in accordance with the company’s structure and the prevailing market situation. With these measures, we are seeking significant annual savings of fixed costs.”

GLASTON’S OUTLOOK FOR 2015 UNCHANGED
Glaston expects that Continuing Operations’ 2015 net sales and comparable operating profit, excluding non-recurring items, will exceed the level of 2014(in 2014 net sales were EUR 109.7 million and comparable operating profit, excluding non-recurring items, was EUR 5.5 million).