GLASTON CORPORATION HALF-YEAR FINANCIAL REPORT 5.8.2021
AT 13.00
This release is a summary of Glaston Corporation's Half-Year January-June 2021
financial 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.
As of 1 January 2021, the company has three reporting segments: Glaston Heat
Treatment, Glaston Insulating Glass and Glaston Automotive & Display. Services
business is included in the reporting segments. Machine and Services sales,
order intake and order book are also reported separately as additional product
area information. On 18 March 2021, the company published comparative
information according to the new structure.
APRIL–JUNE 2021 IN BRIEF
· Orders received totaled EUR 65.9 (24.0) million
· Net sales totaled EUR 43.3 (48.9) million
· Comparable EBITA was EUR 2.4 (2.3) million, i.e. 5.5 (4.8)% of net sales
· The operating result (EBIT) was EUR 1.6 (0.6) million
· The comparable operating result (EBIT) was EUR 1.3 (1.2) million, i.e. 2.9
(2.5)% of net sales
· Items affecting comparability totaled EUR 0.3 (-0.7) million
· Comparable earnings per share were EUR 0.009 (0.002)
· Cash flow from operating activities was EUR 7.7 (-0.3) million
JANUARY–JUNE 2021 IN BRIEF
· Orders received totaled 113.2 (69.6) million
· Net sales totaled EUR 83.7 (95.9) million
· Comparable EBITA was EUR 4.4 (4.4) million, i.e. 5.3 (4.6)% of net sales
· The operating result (EBIT) was EUR 1.7 (0.7) million
· The comparable operating result (EBIT) was EUR 2.2 (2.1) million, i.e. 2.6
(2.2)% of net sales
· Items affecting comparability totaled EUR -0.5 (-1.5) million
· Comparable earnings per share were EUR 0.018 (0.016)
· Cash flow from operating activities was EUR 14.3 (-3.4) million
GLASTON SPECIFIES OUTLOOK FOR 2021
The strong recovery in orders received in the first half of 2021
indicates positive development for both the machines and services business
throughout 2021. The low order backlog at the start of 2021 (20% lower compared
to the previous year) impacted Glaston’s January–June 2021 net sales and
comparable operating profit. Moreover, the second half of 2021 will benefit from
the strong order intake development seen in the first half of the year.
Glaston expects the heat treatment and insulating glass technology markets to
continue to perform well. However, order intake for the rest of the year is
expected to return to pre-COVID-19 levels after the record high second quarter.
In the short-term demand for automotive glass processing technology shows
recovery but remains uncertain due to structural changes and supply chain driven
challenges in the market. There is higher than normal uncertainty connected to
the outlook due to increasing component pricing and delivery times, as well as
potential ongoing travel restrictions.
Based on the high order intake since the fourth quarter of 2020, Glaston
Corporation estimates that its net sales in 2021 will improve from the level
reported for 2020 and specifies its outlook for comparable EBITA, which is
estimated to increase to EUR 10.5−12.5 million. In 2020, Group net sales totaled
EUR 170.1 million and comparable EBITA was EUR 7.7 million.
(Previous outlook: Glaston Corporation estimates that its net sales and
comparable EBITA will improve in 2021 from the levels reported for 2020.)
PRESIDENT & CEO ANDERS DAHLBLOM:
“In the second quarter of 2021, the strong recovery of Glaston’s markets
continued and orders received increased to a record high EUR 65.9 million. This
increase is, of course, significant compared to the COVID-19 impacted second
quarter of 2020 but, more importantly, new orders were as much as 48% higher
than in the second quarter of 2019. The strong demand for heat treatment
equipment, already noted in the previous two quarters, continued throughout the
second quarter, and orders received increased to EUR 24.4 million. Orders
received in the Insulating Glass segment saw excellent development and increased
to EUR 30.9 million. Also, order intake in the Automotive & Display segment
noted good recovery to EUR 10.3 million. Due to the strong development in order
intake, cash flow was excellent and the order backlog increased to EUR 87.8
million.
Second-quarter net sales were EUR 43.3 million, down 12% compared to the
corresponding period in the previous year. Comparable EBITA was slightly above
the previous year’s level (EUR 2.4 million), despite lower net sales.
During the quarter, supply chain disruptions were a growing concern. Raw
material prices are increasing and the delivery times for certain components are
becoming longer. Currently, material shortages are primarily putting pressure on
spare parts and we can see our own delivery times becoming longer for certain
products, which is impacting the timing of our services revenue. We proactively
take actions to secure the availability of the critical components to avoid
delivery delays. Due to increasing material and freight costs, we are focusing
on managing our product pricing accordingly.
Differentiating us from the competition, Glaston’s wide product portfolio and
comprehensive services add value to our customers, who can benefit from unifying
their technology solutions. During the first half of the year, we have noted
good development in cross-selling heat treatment and insulating glass
technologies. Disclosed in April, the strategic and commercial importance of
cross-selling was clearly demonstrated when PRESS GLASS UAB, part of PRESS GLASS
Group, the leading European producer of processed flat glass for the
construction industry, placed an order for several insulating glass lines, one
tempering line, a grinding line, as well as other equipment.
Glaston’s revised strategy for 2021−2025 was approved on 5 August. The key
objectives of the strategy are clearly improved organic growth and
profitability. Growth is driven by our strategic initiatives and the expected
over 5% annual addressable equipment market growth. Strategic must-win
development initiatives securing net sales growth and improved profitability
have been identified in all Glaston business areas, as well as in the services
business. As the industry frontrunner, Glaston plans to increase investments in
innovation and development initiatives. Profitability improvement is supported
by net sales growth, an optimal product offering, as well as productivity
improvements.
For Glaston, sustainability is a strategic focus area. Our ambition is to
maintain leadership in developing the industry towards a more sustainable
future. As societies take actions towards carbon neutrality, there is increased
focus on the energy performance of buildings. Glaston’s technologies are at the
core of promoting sustainability as the majority of our business is targeted at
the architectural segment in which our products provide key technologies for
improved energy efficiency and building safety. The increased focus on reducing
the energy consumption of buildings is expected to boost demand for insulating
glass technologies, in particular. In addressing our focus on sustainability, in
addition to financial targets, we have also set new non-financial targets, for
example for CO[2] emissions and health and safety.
The review period saw a recovery in investment confidence. In most regions and
markets, our customers’ business activity improved. Considering the increasing
customer activity and resumed customer projects, we expect the positive market
development to continue during the second half of 2021, indicating a healthy,
pre-COVID-19 order intake level.
GLASTON GROUP’S KEY FIGURES
[]
MEUR 4–6/202 4–6/202 1–6/202 1–6/202 1–12/20
1 0 1 0 20
Orders received 65.9 24.0 113.2 69.6 153.5
of which service 16.8 9.9 34.3 25.4 57.1
operations
of which service 25.5% 41.3% 30.3% 36.5% 37.2%
operations, %
Order book at end 87.8 49.1 87.8 49.1 63.9
of period
Net sales 43.3 48.9 83.7 95.9 170.1
of which service 14.7 11.2 31.3 27.7 58.1
operations
of which service 34.0% 22.8% 37.4% 28.9% 34.1%
operations, %
EBITDA 3.5 2.6 5.5 4.8 7.6
Items affecting -0.3 0.7 0.5 1.5 3.8
comparability[(1]
Comparable EBITDA 3.2 3.3 6.0 6.3 11.3
Comparable EBITDA, 7.4% 6.7% 7.2% 6.5% 6.7%
%
Comparable EBITA 2.4 2.3 4.4 4.4 7.7
Comparable EBITA, % 5.5% 4.8% 5.3% 4.6% 4.6%
Operating result 1.6 0.6 1.7 0.7 -0.5
(EBIT)
Comparable 1.3 1.2 2.2 2.1 3.2
operating result
(EBIT)
Comparable 2.9% 2.5% 2.6% 2.2% 1.9%
operating result
(EBIT), %
Profit/loss before 0.6 -0.3 0.3 -0.4 -3.3
taxes
Profit/loss for the 0.4 -1.2 -0.3 -1.5 -5.5
period
Comparable earnings 0.009 0.002 0.018 0.016 0.013
per share, adjusted
with share issue,
EUR
Number of 84,290 84,290 84,290 84,290 84,290
registered shares
at end of
period adjusted
with share issue
(1,000)
Cash flow from 7.7 -0.3 14.3 -3.4 0.7
operating
activities
Net interest 21.4 37.4 33.6
-bearing debt at
end of
period
Return on 2.7% 1.0% -0.4%
investment (ROI),
%,
(annualized)
Comparable return 5.3% 4.3% 4.7%
on capital employed
(ROCE), %,
(annualized)
Equity ratio, % 42.1% 40.8% 41.2%
Net gearing, % 32.1% 51.8% 48.8%
Number of employees 733 755 723
at end of period
[(1] + cost, - income
UNCERTAINTES AND FACTORS AFFECTING SHORT-TERM DEVELOPMENT
In the second quarter of 2021, the global economic outlook improved further and
despite the ongoing COVID-19 pandemic, market activity increased in Glaston’s
markets. Even though the impact of the pandemic has decreased, there are still
concerns about the impact of the pandemic, such as more transmissible variants
of the virus and a slow global rollout of vaccinations. This could, lead to new
lockdowns and more stringent travel restrictions, particularly affecting service
work and the spare parts business, as well as machine installations. Under the
prevailing circumstances, a higher-than-normal uncertainty is related to
customers’ investment behavior.
Glaston is also actively mitigating the risks related to raw material and
component prices and availability, as well as logistics cost increases. Major
supply chain disruptions may impact on the company’s performance.
PRESS MEETING
Glaston’s CEO Anders Dahlblom and CFO Päivi Lindqvist will present the financial
result to analysts, investors and media representatives TODAY at 14:30 (Finnish
time) in English.
The live webcast can be accessed through the link:
https://glaston.videosync.fi/2021-08-05-glastonirq2/register . 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 appliance 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.