# Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-04-24 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Glaston Corporation's Interim Report January-March Meta Description: Discover key financial highlights from Glaston Corporation's Interim Report for Q1 2018. Orders received grew by 23% and more insights available. URL: https://financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-levelhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd240418-1-1-1736842819336-compressed.jpg) This release is a summary of Glaston Corporation’s Interim Report for January-March 2018. 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](http://www.glaston.net). On 26 March 2018, Glaston published data restated in accordance with revenue recognition standard IFRS 15. Glaston will apply the new revenue recognition standard fully retrospectively from 1 January 2018, and therefore the interim report 1 January – 31 March 2018 is reported in accordance with the new standard for 2018 actual data and 2017 comparison data. **JANUARY-MARCH 2018** -  Orders received grew by 23% and totalled EUR 26.5 (21.6) million. -  The order book was EUR 36.0 (39.8) million at the [end of March](https://www.financedigest.com/tennis-panic-attack-ends-tsurenkos-indian-wells-as-raducanu-marches-on.html "Tennis-Panic attack ends Tsurenko’s Indian wells, as Raducanu marches on"). -  Net [sales totalled](https://www.financedigest.com/duct-tapes-market-to-grow-at-5-2-natural-rubber-based-adhesives-to-contribute-over-4-5th-of-total-sales-fmi.html "Duct Tapes Market to Grow at 5.2%; Natural Rubber-Based Adhesives to Contribute Over 4/5th of Total Sales: FMI") EUR 24.8 (26.6) million. -  Comparable EBITDA was EUR 1.7 (1.8) million, i.e. EUR 7.0 (6.9)% of net sales. -  The comparable operating profit was EUR 1.0 (1.1) million, i.e. EUR 4.0 (4.1)% of net sales. - [Return on capital](https://www.financedigest.com/insurer-aviva-says-capital-return-and-costs-targets-on-track.html "Insurer Aviva says capital return and costs targets on track") employed (ROCE) was 6.7 (8.6)%. -  Earnings per share were EUR 0.002 (0.003). -  Net interest-bearing debt amounted to EUR 7.7 (3.0) million. **GLASTON’S OUTLOOK UNCHANGED** The steady order intake of the previous six months and [positive market development create good conditions for profitable growth](https://www.financedigest.com/agriculture-container-and-tank-cleaning-equipment-market-witness-positive-growth-outlook-during-forecast-2028.html "Agriculture Container And Tank Cleaning Equipment Market Witness Positive Growth Outlook During Forecast 2028") in 2018. We expect the full-year comparable operating [profit to improve](https://www.financedigest.com/efg-international-says-profitability-improved-in-first-nine-months.html "EFG International says profitability improved in first nine months") from 2017. (Full-year 2017 comparable operating [profit was EUR 5.0 million](https://www.financedigest.com/australias-westpac-flags-950-million-profit-hit-led-by-energy-exit-costs.html "Australia’s Westpac flags 0 million profit hit, led by energy exit costs") according to the new revenue recognition standard IFRS 15). **PRESIDENT & CEO ARTO METSÄNEN:**“Glaston made an upbeat start to the year. The first-quarter orders grew by 23% to EUR 26.5 million, which is a good level for the generally quiet beginning of the year. There was a lot of activity in the EMEA area and [strong development](https://www.financedigest.com/automated-blinds-and-shades-market-to-observe-strong-development-by-2031.html "Automated Blinds And Shades Market to Observe Strong Development by 2031") was seen in the Asia region. [North America](https://www.financedigest.com/north-america-wound-debridement-products-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2024.html "North America Wound Debridement Products Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2024") orders fell short of last year’s level. Net sales totalled EUR 24.8 million, down by 7% compared with the corresponding period of the previous year. Last year’s sale of the pre-processing business as well as the weakness of the US dollar contributed to the decline in net sales. The comparable operating profit was at the previous year’s level, EUR 1.0 million. In line with our strategy, we continued to invest in product development, particularly in the digitalisation of our products and services, as well as in emerging glass technologies. In the early part of the year, progress was made in digital maintenance services, particularly in the area of proactive maintenance. In the Emerging Technologies unit, the Heliotrope nanotechnology project advanced according to plan. A prototype line was approved in March and [progress made](https://www.financedigest.com/sweden-finland-and-turkey-have-made-progress-on-nato-membership-sweden-says.html "Sweden, Finland and Turkey have made progress on NATO membership, Sweden says") on the testing of an electrolyte material. If the final stages of the project are implemented according to plan, the first pilot line may be ordered this year. Smart glass has enormous potential and the smart glass [market](https://www.financedigest.com/recycled-glass-market-estimated-to-experience-a-hike-in-growth-by-2019-2027.html "Recycled Glass Market Estimated to Experience a Hike in Growth by 2019-2027") is expected to grow significantly in the next few years. As our industry’s technology leader, we are actively involved with our Emerging Technologies unit in developing new glass technologies and their practical application. In addition to the Heliotrope project, the unit has nearly ten pending projects, related to the automotive, solar energy and aviation industries. Building the Emerging [Technologies unit’s business will play a particularly significant role in Glaston’s growth](https://www.financedigest.com/extracts-and-distillates-market-overview-high-demand-recent-trends-future-growth-business-scenario-technology-2022-2029.html "Extracts and Distillates Market Overview, High Demand, Recent Trends, Future Growth, Business Scenario & Technology 2022-2029") and increasing shareholder value over the next 3–5 years.” **KEY FIGURES** restatedrestated**31.3.2018****31.3.2017****31.12.2017**Order book, [EUR million](https://www.financedigest.com/google-appeals-french-500-million-eur-copyright-fine.html "Google appeals French 500 million eur copyright fine")36.039.834.1Orders received, EUR million26.521.6103.7Net sales, EUR million24.826.6109.7EBITDA, comparable. EUR million1.71.88.0EBITDA, comparable, as % of net sales7.06.97.3Operating profit (EBIT), comparable, EUR million1.01.15.0Operating profit (EBIT), comparable, as % of net sales4.04.14.6Profit / loss for the period, EUR million0.30.72.6Earnings per share, EUR0.0020.0030.014Net [cash flow](https://www.financedigest.com/covestro-sees-lower-2023-profit-cash-flow-as-macro-challenges-prevail.html "Covestro sees lower 2023 profit, cash flow as macro challenges prevail") from operating activities-6.6-3.80.1Return on capital employed, %, annualized6.78.69.2Gross capital expenditure, EUR million0.30.42.3Equity ratio, %49.044.944.7Gearing, %34.740.235.7 **OPERATING ENVIRONMENT** The glass processing market was fairly lively in the first quarter, and the Machines market, in particular, made an upbeat start to the year. In the EMEA area, [market activity](https://www.financedigest.com/the-plant-activators-market-to-witness-steadfast-growth.html "The Plant Activators Market To Witness Steadfast Growth") continued on a high level. In North America, the [market levelled off, and in South America the market continued](https://www.financedigest.com/welding-consumables-market-continue-to-be-largest-product-segment-in-consumer-market.html "Welding Consumables Market Continue to be Largest Product Segment in Consumer Market") to be quiet. In the Asia market area, development was very positive in the [Pacific region](https://www.financedigest.com/asia-pacific-region-to-lead-the-global-static-shielding-bags-market-fact-mr-report.html "Asia Pacific Region to Lead the Global Static Shielding Bags Market: Fact.MR Report"). MACHINES The Machines business’ year began on an upbeat note, and the EMEA area and Asian markets, in particular, were active. The strongest development was in the EMEA area, where orders received for tempering lines [nearly doubled](https://www.financedigest.com/uks-micro-focus-shares-nearly-double-after-canadas-opentext-agrees-6-billion-takeover.html "UK’s Micro Focus shares nearly double after Canada’s OpenText agrees billion takeover") compared with the corresponding period of the previous year. Development was strongest in [Central Europe](https://www.financedigest.com/analysis-runaway-prices-have-central-europe-on-the-ropes.html "Analysis-Runaway prices have central Europe on the ropes"). The pick-up in the Russian market continued. In the Asia market area, customers’ activity continued at a good level, particularly in the Pacific region. After a few years’ break, a tempering machine deal was closed for Japan. In China, the cautiously [positive development continued](https://www.financedigest.com/artificial-intelligence-ai-to-catalyze-the-continuous-positive-airway-pressure-cpap-devices-market.html "Artificial Intelligence (AI) to catalyze the Continuous Positive Airway Pressure (CPAP) Devices Market"), and the activity of large glass processors increased. In North America, demand is good, but the number of orders was tested by a temporary faltering of demand in the first quarter. In South America, the [market remained](https://www.financedigest.com/tissue-tapes-market-remains-afloat-amid-covid-19-pandemic-to-surge-positively-projects-fmi-2019-2029.html "Tissue Tapes Market Remains Afloat amid COVID-19 Pandemic, to Surge Positively, Projects FMI 2019 – 2029") subdued. Emerging Technologies In the first quarter of the year, the unit’s activities centred on testing the Heliotrope line and running larger glass sizes. In addition, progress was made in material development via a new electrolyte composition, and the new material performed well in the required tests. One of the product’s most significant competitive advantages over products already on the market is its significantly [lower price](https://www.financedigest.com/companies-cost-inflation-is-slowing-but-shoppers-may-wait-for-lower-prices.html "Companies’ cost inflation is slowing but shoppers may wait for lower prices"). As development work advances, production costs are still consistent with their original level. During the coming months, the development of the line will progress to the final testing stage. In addition to the Heliotrope project, Glaston engaged in negotiations on new projects for the automotive, solar energy and aviation industries. As well as production lines, negotiations on more extensive factory engineering services also took place. SERVICES Following a lively fourth quarter, the [Services market](https://www.financedigest.com/car-rental-service-market-is-forecasted-to-grow-at-a-7-2-cagr-by-2031-comprehensive-research-report-by-fmi.html "Car Rental Service Market is forecasted to grow at a 7.2% CAGR By 2031- Comprehensive Research Report by FMI") made a calm start to the year. In the EMEA area and North America, demand for upgrade products was on a good level. A number of tempering line modernisation products were sold to the USA, and a [control system](https://www.financedigest.com/the-automation-control-system-market-to-see-through-the-probable-sea-change-through-digitization.html "The Automation Control System Market to see through the probable sea change through digitization") upgrade package was sold to Canada. In the EMEA area, a capacity-increasing modernisation product was sold to Italy. [Control system upgrade products were sold](https://www.financedigest.com/worldwide-12000000-tons-of-phosphoric-acid-and-citric-acid-products-are-expected-to-be-sold-in-the-global-ph-control-salt-market-by-2026.html "Worldwide 12,000,000 Tons of Phosphoric Acid and Citric Acid Products are Expected to be Sold in the Global pH Control/Salt Market by 2026") to Germany and Algeria, among other countries. In the South [American market](https://www.financedigest.com/north-american-market-for-veterinary-respiratory-ventilators-to-hold-lions-share-owing-to-presence-of-major-key-players-fact-mr-report.html "North American Market for Veterinary Respiratory Ventilators to Hold Lion’s Share Owing to Presence of Major Key Players: Fact.MR Report"), a cautious pick-up in demand was perceptible, and a laminating line modernisation product was sold to Paraguay. [Demand for maintenance services](https://www.financedigest.com/euro-zone-april-business-activity-grows-on-strong-services-demand-pmi.html "Euro zone April business activity grows on strong services demand – PMI") was on a good level. **OUTLOOK UNCHANGED** Activity in the glass processing market was good from the beginning of 2018. The development of Glaston’s order intake took a turn for the better as the end of the quarter approached, and the [positive market development](https://www.financedigest.com/dynamic-positioning-system-market-notable-developments-geographical-outlook.html "Dynamic Positioning System Market: Notable Developments & Geographical Outlook") is expected to continue. The strong [growth expectations for the world economy](https://www.financedigest.com/global-fuel-injector-cleaner-market-emerging-economies-expected-to-influence-growth-until-2031.html "Global Fuel Injector Cleaner Market: Emerging Economies Expected to Influence Growth until 2031") support this view. Customers continue to take time over their investment decisions, which may cause delays in orders and fluctuations in quarterly order intake. The steady order intake of the previous six months and positive market development create good conditions for profitable growth in 2018. We [expect the full-year comparable operating profit](https://www.financedigest.com/paypal-adjusted-margin-forecast-cut-eclipses-higher-profit-expectations.html "PayPal adjusted margin forecast cut eclipses higher profit expectations") to improve from 2017. (Full-year 2017 comparable operating profit was EUR 5.0 million according to the new revenue recognition standard IFRS 15). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---