GLASTON CORPORATION Stock Exchange Release 23 April 2008
8.30 am
Glaston Interim Report 1 January - 31 March 2008
- Orders received grew 25% in the first quarter and totalled EUR 61.1
(48.8) million.
- The order book on 31 March 2008 was EUR 95.5 (92.5) million.
- Net sales were EUR 63.1 (58.2) million, up 8%.
- Operating profit was EUR 1.6 (1.7) million, i.e. 2.6 (2.9)% of net
sales.
- Return on capital employed was 3.5 (10.8)%.
- Earnings per share were EUR 0.01 (0.03)
- The future outlook presented by the company on 6 February 2008,
given in connection with the year end financial statements, is still
valid.
President & CEO Mika Seitovirta:
- The Group's orders received developed in line with
expectations in the first quarter and growth was 25%. Most of the
growth came from the EMEA area, with the Middle East driving the
rise. Asia also developed positively.
- The operating profit for Glaston's core business in the
period under review was significantly better than in the same period
of the previous year. The result is strongly influenced by the losses
incurred in Heat Treatment's Tamglass Glass Processing unit, EUR -1,6
million. Tamglass Glass Processing's restructuring programme has been
further enhanced by new management during the first quarter.
- The Glaston Group's new strategy was announced in January.
The development programmes supporting the Group's profitable growth
are now at the execution stage and are proceeding well. Investments
in the solar energy market are continuing and resources for the
One-Stop-Partner solar function have been increased.
Strategy and financial targets
In January Glaston announced its new strategy and financial targets.
The architectural glass segment and the strongly developing solar
energy market supporting it form the foundation for the Group's
growth in future. The company's One-Stop-Partner concept is a
strategic strength and it distinguishes Glaston from its competitors.
In the automotive and appliance industries, the focus is on good
profitability and cash flow. Investments in the Service business are
growing significantly.
Tamglass Glass Processing, which operates mainly in Finland, is
defined in the strategy as being outside Glaston's core business. The
unit is now focusing strongly on improving profitability and
enhancing operational efficiency. Strategic options for Tamglass
Glass Processing's future are currently under study in Glaston.
The financial targets based on the company strategy's run until 2010.
The financial targets are annual growth of net sales of more than 8
per cent, reaching operating profit of at least 10 per cent and
reaching return on capital employed (ROCE)of at least 20 per cent.
Market
The market developed positively during the quarter, except for North
America. The strongest growth was in the EMEA area. Public
construction remained strong in all market areas. Residential
construction developed unevenly, with big differences between areas.
Demand in the rapidly developing solar energy market continued to be
active.
Demand for the Glaston's One-Stop-Partner concept, i.e. the
combination and joint delivery of pre-processing and safety glass
machines, and now also production management systems, also remained
active. Particularly in the solar energy market, demand for extensive
comprehensive deliveries was strong.
Pre-processing
The market in the Pre-processing business area was good. The economic
downturn in North America and signs of lower economic conditions in
certain Western European countries have not affected demand in the
Pre-processing business area. The South American and Chinese markets
were particularly active and the positive development is expected to
continue. Measures to increase production of pre-processing machines
in China continued. These measures will enhance the company's market
position and support business growth in China.
The Pre-processing business area developed positively during the
first quarter. Net sales grew slightly compared with the
corresponding period the previous year and totalled EUR 22.9 (21.7)
million. The order book grew and stood at EUR 21.0 (20.2) million.
Orders received rose by EUR 1.2 million to a total of EUR 16.5
million.
Heat Treatment
The Heat Treatment business area's market situation was good, except
for North America, where investments have declined due to a rapid
slowdown of residential construction and financial market
instability. To strengthen the position of heat treatment machines in
the Chinese market, measures were initiated to increase local
production of these machines.
First quarter net sales totalled EUR 32.9 (36.6) million. At the end
of the quarter, Heat Treatment's order book was EUR 65.0 (72.3)
million. Order book development was strongly affected by weaker
demand in North America.
Orders received by the Heat Treatment business area developed
according to expectations. In the period under review, safety glass
machine orders grew nearly 27% compared with corresponding period the
previous year. Orders received totalled EUR 39.8 (33.1) million on
31 March 2008. Most of this growth came from the EMEA area.
Software Solutions
The positive development in Software Solutions' business area that
joined the group in the second half of 2007 continued during the
first quarter of 2008. Quality and integrated solutions are becoming
increasingly important selection criteria among customers. This
development is clearly evident in orders received by Software
Solutions.
During the period under review, Europe's biggest window manufacturer
decided, based on an extensive study, to start cooperating with
Albat+Wirsam. This was a significant area conquest, significantly
strengthening the business area's and the whole of Glaston's position
in the European window market.
The Software Solutions business area's net sales were EUR 7.3 million
(7-12/2007: EUR 14.7 million, consolidated from 07/2007). In
January-March, orders received totalled EUR 4.8 million (7-12/2007:
3.0 million). The order book on 31 March 2008 was EUR 9.5 million
(12/2007: EUR 6.2 million).
Service Solutions
Service Solutions' net sales totalled EUR 8.9 (9.5) million. The unit
is not reported as a separate business area; its income is included
in the reporting business areas.
During the period under review, the first global update agreement for
pre-processing machines was signed. The customer is a company
operating in the international solar energy market, and the deal
covered accessories for 15 machines. The machines are located in
different countries.
One Stop Partner
The further development of the One-Stop-Partner operating model has
proceeded during the period under review in close cooperation with
all business areas. In order to develop Glaston's comprehensive
deliveries and to accelerate One-Stop-Partner product integration,
the One-Stop-Partner unit was divided into two as of 7 January 2008:
an OSP Delivery unit and an OSP Offering unit. Alongside product
integration, solar energy solutions are a key priority of operational
development.
Total One-Stop-Partner sales, namely joint deliveries and
combinations of pre-processing and safety glass machines as well as
production management systems, were EUR 2.1 (11.3) million during the
first quarter. Earnings from OSP operations are officially included
in the reporting segments.
Orders received
Glaston's order intake was strong during the first quarter. Orders
received in all business areas totalled EUR 61.1 (48.8) million.
Growth was strongest in the Heat Treatment business area, +20%.
Geographical distribution of orders received, EUR million
+-------------------------------------------+
| | 1-3/2008 | 1-3/2007 | Change, % |
|---------+----------+----------+-----------|
| EMEA | 38.4 | 23.5 | +64 |
|---------+----------+----------+-----------|
| America | 9.1 | 13.6 | -33 |
|---------+----------+----------+-----------|
| Asia | 13.6 | 11.7 | +16 |
|---------+----------+----------+-----------|
| Total | 61.1 | 48.8 | +25 |
+-------------------------------------------+
Order book
Glaston's order book on 31 March 2008 was EUR 95.5 (92.5) million.
The Heat Treatment business area accounted for EUR 65.0 million of
the order book, Pre-Processing for EUR 21.0 million and Software
Solutions for EUR 9.5 million.
+-------------------------------------------------+
| Order book, EUR million | 31.3.2008 | 31.3.2007 |
|-------------------------+-----------+-----------|
| Pre-processing | 21.0 | 20.2 |
|-------------------------+-----------+-----------|
| Heat Treatment | 65.0 | 72.3 |
|-------------------------+-----------+-----------|
| Software Solutions | 9.5 | - |
|-------------------------+-----------+-----------|
| Total | 95.5 | 92.5 |
+-------------------------------------------------+
Net sales and profit
Glaston's net sales in the period under review were EUR 63.1 (58.2)
million. Pre-Processing's net sales in January-March were EUR 22.9
(21.7) million, Heat Treatment's net sales EUR 32.9 (36.6) million
and Software Solution's net sales EUR 7.3 million.
+----------------------------------------------------------+
| Net sales, EUR million | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------+----------+----------+-----------|
| Pre-Processing | 22.9 | 21.7 | 94.1 |
|------------------------+----------+----------+-----------|
| Heat Treatment | 32.9 | 36.6 | 162.3 |
|------------------------+----------+----------+-----------|
| Software Solutions | 7.3 | - | 14.7 |
|------------------------+----------+----------+-----------|
| Parent company, elim. | 0.0 | -0.1 | -1.3 |
|------------------------+----------+----------+-----------|
| Total | 63.1 | 58.2 | 269.8 |
+----------------------------------------------------------+
The company's operating profit in January-March was EUR 1.6 (1.7)
million , i.e. 2.6 (2.9)% of net sales. The Pre-processing business
area accounted for EUR 0.6 million of the first-quarter operating
profit, Heat Treatment for EUR 1.9 million and Software Solutions for
EUR 1.0 million.
Pre-processing's operating profit was below the level of last year,
when the comparison figure was exceptionally high. Tamglass Glass
Processing's loss-making result had a significant adverse impact on
the results of the Heat Treatment business area and Glaston. Tamglass
Glass Processing's restructuring programme will be forcefully
continued during 2008. Software Solution's operating profit was
according to plan.
+-----------------------------------------------------------------+
| Operating profit, EUR million | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|-------------------------------+----------+----------+-----------|
| Pre-Processing | 0.6 | 1.2 | 1.4 |
|-------------------------------+----------+----------+-----------|
| Heat Treatment | 1.9 | 3.0 | 19.6 |
|-------------------------------+----------+----------+-----------|
| Software Solutions | 1.0 | - | 2.6 |
|-------------------------------+----------+----------+-----------|
| Parent company, elim. | -1.8 | -2.4 | -7.0 |
|-------------------------------+----------+----------+-----------|
| Operating profit, total | 1.6 | 1.7 | 16.6 |
+-----------------------------------------------------------------+
Profit for the financial period was EUR 0.6 (2.1) million. Return on
capital employed was 3.5 (10.8)% and earnings per share were EUR 0.01
(0.03).
Financing
The Group's financial position was good. The equity ratio on 31 March
2008 was 52.0 (59.1)%. Glaston Continuing Operations' cash flow from
business operations was EUR -0.2 (-3.2) million and cash flow from
investments was EUR -3.1 (-1.7) million.
Cash flow from financing in January-March was EUR 8.4 (1.8) million,
including dividends paid in the financial period of EUR 7.2 (6.5)
million.
The Group's liquid funds on 31 March 2008 totalled EUR 16.3 (12.0)
million. Interest-bearing net debt amounted to EUR 20.5 (3.4)
million. The ratio of net debt to shareholders' equity (gearing) was
15.6 (2.5)%.
Capital expenditure
Capital expenditure in the financial period totalled EUR 3.3 (1.7)
million. The most significant capital expenditure items were in the
global ERP project, product development and into production machines.
Organisation and personnel
Henrik Reims was appointed SVP, OSP Deliveries and member of
Glaston's Executive Management Group as of 7 January 2008. SVP,
Software Solutions Günter Befort is responsible for developing
Glaston's OSP Offering unit as of 7 January 2008. Mauri Leponen,
previously SVP, One-Stop-Partner, left Glaston on 1 April 2008.
To streamline Finnish operations, Glaston Services Ltd. business
operations were transferred on 1 January 2008 to Glaston Finland Oy.
The transfer has no impact on the number of personnel.
Timo Rautarinta was appointed Managing Director of Glaston's glass
processing unit Tamglass Glass Processing as of 3 March 2008.
On 31 March 2008, Glaston had a total of 1,490 (1,193) employees, of
whom 31% were in Finland and 47% elsewhere in Europe, mainly in
Germany and Italy. The proportion of Group employees working in Asia
was 8% and in the Americas 14%. The average number of employees was
1,461 (1,205).
Shares and share prices
Glaston's share capital on 31 March 2008 was EUR 12,696,000. During
the first quarter, a total of 781,196 of the company's shares were
traded, representing 1% of the total number of shares. The lowest
price paid for a share was EUR 2.70 and the highest price EUR 3.30.
The average price during the period was EUR 3.07.
Decisions of the Annual General Meeting
The company's Annual General Meeting was held on 11 March 2008. The
meeting approved the financial statements for 2007 and released the
Board of Directors and the President & CEO from liability for the
financial year.
The meeting also approved the Board of Directors' proposal to pay a
dividend of EUR 0.10 per share, a total of EUR 7.8 million.
Annual General Meeting confirmed that following persons will continue
on the Board of Directors for a year-long term of office: Claus von
Bonsdorff, Klaus Cawén, Carl-Johan Rosenbröijer, Christer Sumelius
and Andreas Tallberg. Uponor Oyj's President & CEO Jan Lång and
Cargotec Oyj's President & CEO Mikael Mäkinen were elected new
members of the Board of Directors. The Annual General Meeting decided
to keep the Chairman of the Board's annual fee at 40,000 euros and
Deputy Chairman's annual fee at 30,000 euros. It was also decided to
keep the fees of the other members of the board at 20,000 euros per
year.
The 2008 Annual General Meeting re-elected as auditor the authorised
public accounting firm KPMG Oy Ab, with the responsible auditor being
Sixten Nyman APA.
Acquisition and disposal of own shares
The 2007 Annual General Meeting authorised the Board of Directors to
acquire company's own shares up to a maximum of 7,605,096 shares. The
authorisation is valid until the end of the 2009 Annual General
Meeting and remains unexercised in respect of 7,021,500 shares.
During the first quarter, the company did not acquire its own shares.
Events after the review period
Timo Nieminen MSc(Eng), MSc(Econ) has been appointed Glaston's SVP,
Service Solutions and member of Glaston's Executive Management Group
as of 5 May 2008. Tapio Rauhala, the present SVP, Service Solutions,
will leave Glaston on 15 July 2008.
Uncertainties in the near future
The Group still considers the short-term uncertainties to be the
development of the US market and the US dollar exchange rate, as well
as the transfer of this development more strongly into other markets.
The price development and availability of raw materials and
components, mainly in Finland, also represent a significant
uncertainty factor. Large OSP orders received by Glaston increase the
production and delivery process challenges, as the first deliveries
will take place at the end of 2008.
Outlook
Glaston's outlook for 2008 remains positive, with the exception of
North America. Due to the geographical distribution of the company's
operations, the economic cycles of Europe, Asia and America partly
balance each other out.
Demand for OSP comprehensive deliveries is expected to continue to
grow due to customers' increasing efficiency and productivity
requirements.
Glaston expects that it will clearly increase its net sales and
operating profit compared with 2007. Quarterly net sales and
operating profit are expected to develop as in 2007, with the first
quarter being the weakest and the fourth quarter being the strongest.
Helsinki, 23 April 2008
Glaston Corporation
Board of Directors
Sender:
Glaston Corporation
Kimmo Lautanen
Chief Financial Officer
Tel: +358 10 500 500
Agneta Selroos
IR and Communications Manager
Tel: +358 10 500 520
Further information:
President & CEO Mika Seitovirta, tel: +358 10 500 500
Chief Financial Officer Kimmo Lautanen, +358 10 500 500
Glaston Corporation
Glaston Corporation is a growing,international glass technology
company. Glaston is the global market leader in glass processing
machines, and a comprehensive One-Stop-Partner supplier to its
customers. Its product range and service network are the widest in
the industry. Glaston's well-known brands are Bavelloni in
pre-processing machines and tools, Tamglass and Uniglass in safety
glass machines, and Albat+Wirsam Software in glass industry software.
Glaston's own glass processing unit, Tamglass Glass Processing, is a
local Finnish manufacturer of high quality safety glass products.
Glaston's share (GLA1V) is listed on the OMX Nordic Exchange Helsinki
Mid Cap List.
www.glaston.net
Distribution:
OMX
Main media
www.glaston.net
+-------------------------------------------------------------------+
| Glaston Group | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Consolidated Income | | | |
| Statement, | | | |
|------------------------------+-----------+-----------+------------|
| EUR million | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------------+-----------+-----------+------------|
| Continuing Operations | | | |
|------------------------------+-----------+-----------+------------|
| Net sales | 63,1 | 58,2 | 269,8 |
|------------------------------+-----------+-----------+------------|
| Other operating income | 0,2 | 0,2 | 0,6 |
|------------------------------+-----------+-----------+------------|
| Operating expenses | 59,7 | 55,3 | 246,6 |
|------------------------------+-----------+-----------+------------|
| Non-recurring items | 0,0 | 0,0 | 4,6 |
|------------------------------+-----------+-----------+------------|
| Depreciation | 2,0 | 1,4 | 7,2 |
|------------------------------+-----------+-----------+------------|
| Operating profit | 1,6 | 1,7 | 12,0 |
|------------------------------+-----------+-----------+------------|
| % of net sales | 2,6 | 2,9 | 4,5 |
|------------------------------+-----------+-----------+------------|
| Operating profit excluding | 1,6 | 1,7 | 16,6 |
|------------------------------+-----------+-----------+------------|
| non-recurring items | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| % of net sales | 2,6 | 2,9 | 6,2 |
|------------------------------+-----------+-----------+------------|
| Financial income and | | | |
| expenses | -0,5 | 0,2 | -0,0 |
|------------------------------+-----------+-----------+------------|
| Profit before taxes | 1,1 | 1,9 | 12,0 |
|------------------------------+-----------+-----------+------------|
| Income tax | -0,5 | -1,3 | -5,2 |
|------------------------------+-----------+-----------+------------|
| Profit for the financial | | | |
| period, | 0,6 | 0,6 | 6,9 |
|------------------------------+-----------+-----------+------------|
| Continuing Operations | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Discontinued Operations | | | |
|------------------------------+-----------+-----------+------------|
| Profit for the financial | | | |
| period, | | | |
|------------------------------+-----------+-----------+------------|
| Discontinued Operations | 0,0 | 1,5 | 3,8 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Profit for the financial | | | |
| period | 0,6 | 2,1 | 10,6 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Attributable to: | | | |
|------------------------------+-----------+-----------+------------|
| Equity holders of the | | | |
| parent | 0,6 | 2,1 | 10,6 |
|------------------------------+-----------+-----------+------------|
| Minority interest | 0,0 | 0,0 | 0,0 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Earnings per share, euros, | | | |
|------------------------------+-----------+-----------+------------|
| Continuing Operations | 0,01 | 0,01 | 0,09 |
|------------------------------+-----------+-----------+------------|
| Earnings per share, euros, | | | |
|------------------------------+-----------+-----------+------------|
| Discontinued Operations | 0,0 | 0,02 | 0,05 |
|------------------------------+-----------+-----------+------------|
| Earnings/share, euros, total | 0,01 | 0,03 | 0,14 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Consolidated Balance Sheet, | | | |
| EUR million | 31.3.2008 | 31.3.2007 | 31.12.2007 |
|------------------------------+-----------+-----------+------------|
| Assets | | | |
|------------------------------+-----------+-----------+------------|
| Non-current assets | 121,6 | 108,0 | 120,6 |
|------------------------------+-----------+-----------+------------|
| Inventories | 52,0 | 47,8 | 46,2 |
|------------------------------+-----------+-----------+------------|
| Trade and other receivables | 90,1 | 68,3 | 97,4 |
|------------------------------+-----------+-----------+------------|
| Assets recognised at fair | | | |
| value | | | |
|------------------------------+-----------+-----------+------------|
| through profit and loss | 0,1 | 0,0 | 0,1 |
|------------------------------+-----------+-----------+------------|
| Cash and cash equivalents | 16,3 | 12,0 | 11,3 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Non-current assets | | | |
| held-for-sale | 0,3 | 14,6 | 0,3 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Assets, total | 280,5 | 250,7 | 275,9 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Equity and liabilities | | | |
|------------------------------+-----------+-----------+------------|
| Equity attributable to | | | |
| equity holders | | | |
|------------------------------+-----------+-----------+------------|
| of the parent | 131,3 | 135,1 | 139,5 |
|------------------------------+-----------+-----------+------------|
| Minority interest | 0,0 | 0,0 | 0,0 |
|------------------------------+-----------+-----------+------------|
| Equity, total | 131,3 | 135,2 | 139,6 |
|------------------------------+-----------+-----------+------------|
| Non-current interest-bearing | | | |
| liabilities | 1,9 | 0,6 | 1,9 |
|------------------------------+-----------+-----------+------------|
| Non-current interest-free | | | |
| liabilities | 20,3 | 14,5 | 18,9 |
|------------------------------+-----------+-----------+------------|
| Current interest-bearing | | | |
| liabilities | 35,1 | 15,0 | 19,4 |
|------------------------------+-----------+-----------+------------|
| Current interest-free | | | |
| liabilities | 91,8 | 85,2 | 96,1 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Liabilities relating to | | | |
| non-current | | | |
|------------------------------+-----------+-----------+------------|
| assets held for sale | 0,0 | 0,4 | 0,0 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Equity and liabilities, | | | |
| total | 280,5 | 250,7 | 275,9 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------------+
| Glaston Group | | | |
|----------------------------------------+--------+--------+--------|
| | 31.1. | 31.3. | 31.12. |
|----------------------------------------+--------+--------+--------|
| Key figures | 2008 | 2007 | 2007 |
|----------------------------------------+--------+--------+--------|
| | | | |
|----------------------------------------+--------+--------+--------|
| Number of shares, 1,000 | 79 350 | 79 350 | 79 350 |
|----------------------------------------+--------+--------+--------|
| - of which outstanding | 78 437 | 79 020 | 78 437 |
|----------------------------------------+--------+--------+--------|
| Return on capital employed, % | 3,5 | 10,8 | 12,1 |
|----------------------------------------+--------+--------+--------|
| Return on equity, % | 1,5 | 6,1 | 7,6 |
|----------------------------------------+--------+--------+--------|
| Equity ratio, % | 52,0 | 59,1 | 55,4 |
|----------------------------------------+--------+--------+--------|
| Gearing, % | 15,6 | 2,5 | 7,4 |
|----------------------------------------+--------+--------+--------|
| Equity per share, EUR | 1,67 | 1,71 | 1,78 |
|----------------------------------------+--------+--------+--------|
| Investments in fixed assets, EUR | | | |
| million | 3,3 | 1,7 | 34,10 |
|----------------------------------------+--------+--------+--------|
| Personnel at end of period | 1 490 | 1 193 | 1 435 |
|----------------------------------------+--------+--------+--------|
| Personnel (average) | 1 461 | 1 205 | 1 350 |
|----------------------------------------+--------+--------+--------|
| Order book, Continuing Operations, EUR | | | |
| million | 95,5 | 92,5 | 87,0 |
+-------------------------------------------------------------------+
Consolidated
statement of
changes
in equity
Equity
attributable
to
equity
holders of
the parent
Inves-
Fair ted
Sha- value unre-
Sha- re and stri- Trea- Re- Mino- To-
re pre- Trans- other cted sury tained rity tal
capi- mium lation reser- equity sha- ear- To- inte- equ-
EUR million tal account reserve ves reserve res nings tal rest ity
Equity at 1
Jan 2008 12,7 25,3 -1,3 0,1 0,3 -3,9 106,4 139,5 0,0 139,6
Cash flow
hedges, net
of tax
Gains and
losses taken
to equity 0,0 0,0 0,0
Translation
differences -1,0 -1,0 0,0 -1,0
Share-based
payments 0,0 0,0 0,0
Profit for
the period 0,6 0,6 0,0 0,6
Total
recognized
income and
expense for
the period -1,0 0,0 0,0 0,0 0,6 -0,4 0,0 -0,4
Dividends -7,8 -7,8 -7,8
Equity at 31
March 2008 12,7 25,3 -2,3 0,1 0,3 -3,9 99,2 131,3 0,0 131,3
Inves-
Fair ted
Sha- value unre-
Sha- re and stri- Trea- Re- Mino-
re pre- Trans- other cted sury tained rity Tot
capi- mium lation reser- equity sha- ear- inte- equ-
tal account reserve ves reserve res nings Tot rest ity
Equity at 1
Jan 2007 12,7 25,3 0,4 -0,2 -1,0 102,8 140,1 0,0 140,1
Cash flow
hedges, net
of tax
Gains and
losses taken
to equity 0,3 0,3 0,3
Translation
differences -0,3 -0,3 -0,3
Gains and
losses from
hedge of net
investments
in foreign
operations,
net of tax 0,1 0,1 0,1
Profit for
the
period 2,1 2,1 2,1
Total recognized
income
and expense
for the
period -0,2 0,3 2,1 2,2 0,0 2,2
Dividends -7,1 -7,1 -7,1
Equity at 31
March 2007 12,7 25,3 0,2 0,1 -1,0 97,8 135,1 0,0 135,2
+-------------------------------------------------------------------+
| Glaston Group | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Segment-specific data | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Net sales, EUR million | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Pre-processing | 22,9 | 21,7 | 94,1 |
|------------------------------+-----------+-----------+------------|
| Heat Treatment | 32,9 | 36,6 | 162,3 |
|------------------------------+-----------+-----------+------------|
| Software Solutions | 7,3 | | 14,7 |
|------------------------------+-----------+-----------+------------|
| Parent company and | | | |
| eliminations | 0,0 | -0,1 | -1,3 |
|------------------------------+-----------+-----------+------------|
| Total | 63,1 | 58,2 | 269,8 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Operating profit, excluding | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------------+-----------+-----------+------------|
| non-recurring items, EUR | | | |
| million | | | |
|------------------------------+-----------+-----------+------------|
| Pre-processing | 0,6 | 1,2 | 1,4 |
|------------------------------+-----------+-----------+------------|
| Heat Treatment | 1,9 | 3,0 | 19,6 |
|------------------------------+-----------+-----------+------------|
| Software Solutions | 1,0 | | 2,6 |
|------------------------------+-----------+-----------+------------|
| Parent company and | | | |
| eliminations | -1,8 | -2,4 | -7,0 |
|------------------------------+-----------+-----------+------------|
| Total | 1,6 | 1,7 | 16,6 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Operating profit, excluding | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------------+-----------+-----------+------------|
| non-recurring items, % | | | |
|------------------------------+-----------+-----------+------------|
| Pre-processing | 2,5 % | 5,3 % | 1,5 % |
|------------------------------+-----------+-----------+------------|
| Heat Treatment | 5,7 % | 8,1 % | 12,1 % |
|------------------------------+-----------+-----------+------------|
| Software Solutions | 13,2 % | | 17,8 % |
|------------------------------+-----------+-----------+------------|
| Glaston, total | 2,6 % | 2,9 % | 6,2 % |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Net sales by market area | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| EMEA | 43,2 | 36,7 | 150,5 |
|------------------------------+-----------+-----------+------------|
| America | 11,9 | 13,0 | 75,6 |
|------------------------------+-----------+-----------+------------|
| Asia | 8,0 | 8,5 | 43,7 |
|------------------------------+-----------+-----------+------------|
| Total | 63,1 | 58,2 | 269,8 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Net sales by market area, % | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| EMEA | 68,5 % | 63,1 % | 55,8 % |
|------------------------------+-----------+-----------+------------|
| America | 18,9 % | 22,3 % | 28,0 % |
|------------------------------+-----------+-----------+------------|
| Asia | 12,7 % | 14,5 % | 16,2 % |
|------------------------------+-----------+-----------+------------|
| Total | 100,0 % | 100,0 % | 100,0 % |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Orders received, EUR million | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|------------------------------+-----------+-----------+------------|
| Pre-processing | 16,5 | 15,9 | 68,7 |
|------------------------------+-----------+-----------+------------|
| Heat Treatment | 39,8 | 32,9 | 141,0 |
|------------------------------+-----------+-----------+------------|
| Software Solutions | 4,8 | | 3,0 |
|------------------------------+-----------+-----------+------------|
| Total | 61,1 | 48,8 | 212,7 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Order book, EUR million | 31.3.2008 | 31.3.2007 | 31.12.2007 |
|------------------------------+-----------+-----------+------------|
| Pre-processing | 21,0 | 20,2 | 20,9 |
|------------------------------+-----------+-----------+------------|
| Heat Treatment | 65,0 | 72,3 | 59,9 |
|------------------------------+-----------+-----------+------------|
| Software Solutions | 9,5 | | 6,2 |
|------------------------------+-----------+-----------+------------|
| Total | 95,5 | 92,5 | 87,0 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Personnel at the end of the | | | |
| period, Continuing | | | |
| Operations | 31.3.2008 | 31.3.2007 | 31.12.2007 |
|------------------------------+-----------+-----------+------------|
| Pre-processing | 625 | 574 | 556 |
|------------------------------+-----------+-----------+------------|
| Heat Treatment | 600 | 584 | 612 |
|------------------------------+-----------+-----------+------------|
| Software Solutions | 239 | | 247 |
|------------------------------+-----------+-----------+------------|
| Parent company | 25 | 11 | 20 |
|------------------------------+-----------+-----------+------------|
| Total | 1 490 | 1 169 | 1 435 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Personnel, average, | | | |
| Continuing Operations | 31.3.2008 | 31.3.2007 | 31.12.2007 |
|------------------------------+-----------+-----------+------------|
| Pre-processing | 602 | 582 | 586 |
|------------------------------+-----------+-----------+------------|
| Heat Treatment | 590 | 589 | 608 |
|------------------------------+-----------+-----------+------------|
| Software solutions | 246 | | 143 |
|------------------------------+-----------+-----------+------------|
| Parent company | 24 | 10 | 13 |
|------------------------------+-----------+-----------+------------|
| Total | 1 461 | 1 181 | 1 350 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------------+
| Quarterly data | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| Net sales, | | | | | |
| operating result | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| and order book for | | | | | |
| Continuing | | | | | |
| Operations, EUR | | | | | |
| million | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| Net sales | 1-3/07 | 4-6/07 | 7-9/07 | 10-12/07 | 1-3/08 |
|--------------------+--------+--------+--------+----------+--------|
| Pre-processing | 21,7 | 23,4 | 20,6 | 28,5 | 22,9 |
|--------------------+--------+--------+--------+----------+--------|
| Heat Treatment | 36,6 | 42,7 | 30,2 | 52,8 | 32,9 |
|--------------------+--------+--------+--------+----------+--------|
| Software Solutions | - | - | 6,8 | 7,9 | 7,3 |
|--------------------+--------+--------+--------+----------+--------|
| Parent company and | | | | | |
| eliminations | -0,1 | -0,5 | -0,3 | -0,5 | 0,0 |
|--------------------+--------+--------+--------+----------+--------|
| Total | 58,2 | 65,6 | 57,3 | 88,8 | 63,1 |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| Operating result | | | | | |
| excluding | | | | | |
| non-recurring | | | | | |
| items | 1-3/07 | 4-6/07 | 7-9/07 | 10-12/07 | 1-3/08 |
|--------------------+--------+--------+--------+----------+--------|
| Pre-processing | 1,2 | -0,2 | 0,3 | 0,2 | 0,6 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | 5,3 | -0,9 | 1,3 | 0,8 | 2,5 |
|--------------------+--------+--------+--------+----------+--------|
| Heat Treatment | 3,0 | 5,7 | 3,2 | 7,7 | 1,9 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | 8,1 | 13,4 | 10,5 | 14,6 | 5,7 |
|--------------------+--------+--------+--------+----------+--------|
| Software Solutions | - | - | 1,6 | 1,0 | 1,0 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | - | - | 23,1 | 13,2 | 13,2 |
|--------------------+--------+--------+--------+----------+--------|
| Parent company and | | | | | |
| eliminations | -2,4 | -1,7 | -1,1 | -1,8 | -1,8 |
|--------------------+--------+--------+--------+----------+--------|
| Total | 1,7 | 3,8 | 4,0 | 7,1 | 1,6 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | 2,9 | 5,8 | 6,9 | 8,0 | 2,6 |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| Operating result | 1-3/07 | 4-6/07 | 7-9/07 | 10-12/07 | 1-3/08 |
|--------------------+--------+--------+--------+----------+--------|
| Pre-processing | 1,2 | -1,6 | 0,3 | 0,3 | 0,6 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | 5,3 | -7,0 | 1,3 | 0,9 | 2,5 |
|--------------------+--------+--------+--------+----------+--------|
| Heat Treatment | 3,0 | -0,2 | 3,2 | 7,7 | 1,9 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | 8,1 | -0,4 | 10,6 | 14,6 | 5,7 |
|--------------------+--------+--------+--------+----------+--------|
| Software Solutions | - | - | 1,6 | 1,0 | 1,0 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | - | - | 23,1 | 13,2 | 13,2 |
|--------------------+--------+--------+--------+----------+--------|
| Parent company and | | | | | |
| eliminations | -2,4 | -1,8 | -1,1 | 0,9 | -1,8 |
|--------------------+--------+--------+--------+----------+--------|
| Total | 1,7 | -3,6 | 4,0 | 9,9 | 1,6 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result, | | | | | |
| % | 2,9 | -5,4 | 6,9 | 11,2 | 2,6 |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| Order book | 03/07 | 06/07 | 09/07 | 12/07 | 03/08 |
|--------------------+--------+--------+--------+----------+--------|
| Pre-processing | 20,2 | 25,9 | 24,4 | 20,9 | 21,0 |
|--------------------+--------+--------+--------+----------+--------|
| Heat Treatment | 72,3 | 95,7 | 92,6 | 59,9 | 65,0 |
|--------------------+--------+--------+--------+----------+--------|
| Software Solutions | - | - | 8,6 | 6,2 | 9,5 |
|--------------------+--------+--------+--------+----------+--------|
| Total | 92,5 | 121,6 | 125,7 | 87,0 | 95,5 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------------+
| Glaston Group | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Consolidated Cash Flow | | | |
|------------------------------+-----------+-----------+------------|
| Statement, EUR million | 1.1.- | 1.1.- | 1.1.- |
|------------------------------+-----------+-----------+------------|
| | 31.3. | 31.3. | 31.12. |
|------------------------------+-----------+-----------+------------|
| | 2008 | 2007 | 2007 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from business | | | |
| operations, Continuing | | | |
| Operations | | | |
|------------------------------+-----------+-----------+------------|
| Profit for the financial | | | |
| period | 0,6 | 0,6 | 6,9 |
|------------------------------+-----------+-----------+------------|
| Adjustments | 2,0 | 1,3 | 6,0 |
|------------------------------+-----------+-----------+------------|
| Cash flow before change in | | | |
| working capital | 2,6 | 1,9 | 12,9 |
|------------------------------+-----------+-----------+------------|
| Change in working capital | -1,2 | -3,1 | 1,2 |
|------------------------------+-----------+-----------+------------|
| Cash flow from business | | | |
| operations before financial | | | |
| items and taxes | 1,4 | -1,2 | 14,0 |
|------------------------------+-----------+-----------+------------|
| Operating result excluding | | | |
| non-recurring items | 0,2 | | 0,3 |
|------------------------------+-----------+-----------+------------|
| Interests received | | | |
|------------------------------+-----------+-----------+------------|
| Dividends received | -0,4 | -0,1 | -1,2 |
|------------------------------+-----------+-----------+------------|
| Taxes paid | -1,3 | -1,9 | -4,5 |
|------------------------------+-----------+-----------+------------|
| Cash flow from business | | | |
| operations | -0,2 | -3,2 | 8,7 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from investing | | | |
| activities, Continuing | | | |
| Operations | | | |
|------------------------------+-----------+-----------+------------|
| Acquisition of subsidiaries | | | -17,7 |
|------------------------------+-----------+-----------+------------|
| Investments in tangible and | | | |
| intangible assets | -3,1 | -1,8 | -11,3 |
|------------------------------+-----------+-----------+------------|
| Proceeds from disposal of | | | |
| tangible and intangible | | | |
| assets | 0,0 | 0,1 | 1,7 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from investing | | | |
| activities | -3,1 | -1,7 | -27,3 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from financing | | | |
| activities, Continuing | | | |
| Operations | | | |
|------------------------------+-----------+-----------+------------|
| Acquisition of treasury | | | |
| shares | | | -3,9 |
|------------------------------+-----------+-----------+------------|
| Disposal of treasury shares | | | 1,3 |
|------------------------------+-----------+-----------+------------|
| Withdrawals of current loans | 17,5 | 8,3 | 14,1 |
|------------------------------+-----------+-----------+------------|
| Repayments of current loans | -1,9 | | -2,9 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Dividends paid | -7,2 | -6,5 | -7,1 |
|------------------------------+-----------+-----------+------------|
| Cash flow from financing | | | |
| activities | 8,4 | 1,8 | 1,5 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Discontinued Operations | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from business | | | |
| operations | | 4,6 | 7,6 |
|------------------------------+-----------+-----------+------------|
| Cash flow from investments | | | 10,7 |
|------------------------------+-----------+-----------+------------|
| Cash flow from financing | | | |
| activities | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from Discontinued | | | |
| Operations | | 4,6 | 18,3 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Change in cash and cash | | | |
| equivalents | 5,2 | 1,5 | 1,1 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash and cash equiv. at | | | |
| beginning of period | 11,3 | 10,5 | 10,5 |
|------------------------------+-----------+-----------+------------|
| Cash and cash equiv. at end | | | |
| of period | 16,3 | 12,0 | 11,3 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Contingent liabilities, EUR | | | |
| million | 31.3.2008 | 31.3.2007 | 31.12.2007 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Company mortgages | 0,2 | 0,2 | 0,2 |
|------------------------------+-----------+-----------+------------|
| Other own liabilities | 22,4 | 5,0 | 24,1 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------------+
| | | | | | |
|-------------------------------------------------------------------|
| Net sales, operating result and order book for Continuing |
| Operations, EUR million |
|-------------------------------------------------------------------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| | 1-3/07 | 4-6/07 | 7-9/07 | 10-12/07 | 1-3/08 |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| Net sales | 58,2 | 65,6 | 57,3 | 88,8 | 63,1 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result | | | | | |
| excluding | | | | | |
| non-recurring | | | | | |
| items | 1,7 | 3,8 | 4,0 | 7,1 | 1,6 |
|--------------------+--------+--------+--------+----------+--------|
| Operating result % | 2,9 | 5,8 | 6,9 | 8,0 | 2,6 |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| | 03/07 | 06/07 | 09/07 | 12/07 | '03/08 |
|--------------------+--------+--------+--------+----------+--------|
| | | | | | |
|--------------------+--------+--------+--------+----------+--------|
| Order book | 92,5 | 121,6 | 125,9 | 87,0 | 95,5 |
+-------------------------------------------------------------------+
Accounting principles
The interim report has been prepared applying the recognition and
valuation principles of the IFRS standards, but in its preparation
all of the requirements of the IAS 34 Standard have not been
applied.
The accounting principles of the interim report are the same as in
the financial statements of 31 December 2007.
In the calculation of key figures presented in this interim report,
the same calculation principles have been applied as in the 2007
financial statements.
Data presented in the interim report are unaudited.
CALCULATION OF KEY FIGURES
Equity ratio, %=
Equity/ x 100
Balance sheet total - advances received
Gearing, %=
Net interest-bearing liabilities/ x 100
Equity
Net-interest-bearing liabilities=
Interest-bearing liabilities - interest-bearing receivables - cash
and cash equivalents and other short-term investments
Return on equity (ROE), %=
Profit or loss for the period / x 100
Equity
Return on capital employed (ROCE), % =
Profit before taxes + interest expenses / x 100
Interest-bearing liabilities + equity (average)
Earning per share (EPS)=
Profit for the period attributable to equity holders of the parent /
Average number of shares for period excluding treasury shares
Equity per share =
Equity /
Number of shares outstanding at end of period
