GLASTON CORPORATION Stock Exchange Release 5 May 2009 9.00 a.m.
Glaston Interim Report 1 January - 31 March 2009
- Orders received in January-March totalled EUR 24.5 (68.3) million.
- Glaston's order book on 31 March 2009 was EUR 45.9 (96.9)
million.
- Consolidated net sales in January-March totalled EUR
39.2 (63.1) million.
- The operating result in January-March was a loss
of EUR 9.0 (1.6 profit)
million, representing -22.9 (+2.6)% of net
sales.
- Return on capital employed (ROCE) was -17.1 (+4.1)%
- January-March earnings per share were EUR -0.10 (0.01).
- Due to a weak order book for the beginning of 2009 and
exceptionally low
demand, Glaston expects 2009 net sales to fall short
of the 2008 level and
the operating result to remain loss-making in the
second quarter of the year.
President & CEO Mika Seitovirta:
“The glass processing machine market came to
a halt in the final quarter of
2008. The inactive market situation
continued in the first quarter in nearly all
the market areas. The economic
downturn and the dysfunctional financial markets
influenced customers'
investment needs and decisions.
The sharp decline
in net sales affected Glaston's very weak financial
performance.
The cost-cutting measures initiated have not yet had a
corresponding impact during the review period.
In April we began to adjust our structure, in addition to the efficiency
programmes already under way. The restructuring is directed
particularly at the
machine business. The Pre-processing and Heat Treatment
business areas will be
merged to the Machines business area. In addition to
this, the product portfolio
and manufacturing footprint will be rationalised.
As part of the re-structuring,
our factory in Cinnaminson, USA will be closed.
The cost savings from the efficiency
measures initiated this year and last are
estimated to total EUR 15 million.
The savings will be implemented mainly during
2009. The cost savings of the
first quarter (excluding material expenses)
totalled EUR 3.7 million
compared with the corresponding period the previous
year.
The architectural
and insulating glass processing operations of the heavily
loss-making
Tamglass Glass Processing were sold during the review period.”
Markets
The
sharp weakening of demand that began in the final quarter of 2008 continued
during the review period. All market areas, except for South America, came to
a
halt. The emphasis of machine sales was on sales of single machines. There
was
no demand for extensive One-Stop-Partner sales.
Pre-processing
The strong slowing of the Pre-processing market that began at the
end of 2008
continued during the early part of the year. Demand for glass
pre-processing
machines weakened in all market areas, except for South
America.
To boost sales, a customer event was arranged in
Italy in March. The event was
attended by more than 300 customers from
around 30 different EMEA countries.
During the review period, the
strengthening of the global tool sales
organisation continued.
New cooperation and agency agreements were signed, for
example, in the EMEA
area and the United States.
The weak market
situation affected the business area's new orders and result.
Orders
received in January-March totalled EUR 8.0 (19.4) million. January-March
net
sales totalled EUR 11.1 (22.9) million.
Heat Treatment
The strong weakening of demand that began in the final quarter of 2008
intensified during the review period. The economic downturn and the
unstable
financial markets influenced customers' investment decisions.
Demand in the South American market continued to be good. The
biggest proportion
of orders in the review period continued to come, however,
from the main market
area, EMEA. Overall, however, the volume of orders
received was significantly
below the level for the corresponding period in
2008.
Measures to strengthen market position were
continued. Development of
manufacturing operations was continued by
localising manufacturing of
continuously operating flat tempering
machines in China. The first sale of a CHF
machine manufactured in China was
signed in January. The building of a global
sourcing organisation was
continued by increasing resources in Finland and in
Italy.
In product
development, the development of flat tempering was in focus and the
product
development of solar energy glass tempering was continued. The product
development and manufacturing of Uniglass products was transferred to
Glaston's
Tampere factory and measures initiated to merge the sales
organisations.
The Heat Treatment business area's January-March net
sales totalled EUR 22.2
(32.9) million. In the review period, orders
received totalled EUR 14.1 (44.0)
million. Profitability weakened compared
with the previous year, despite the
initiated cost-cutting measures. Due
to the weakened market situation, new
measures were initiated to lower
costs by increasing adjustment measures and by
extending them to cover a
wider group of employees than before.
The restructuring of
Tamglass Glass Processing continued in the review period.
On 31 March,
Glaston sold the insulation and architectural glass business of
Tamglass
Glass Processing to INTERPANE Glass Oy.
Software Solutions
Economic downturn had a substantial impact on the activity of the
Software
Solutions business area in the first quarter. Demand in the
United States and in
China came to a halt. The Central European market
remained stable.
The product development priorities were a
higher degree of automation as well as
integration and flexibility. The
Panorama line control system, which enables
control and observation of
entire production lines on a network, was developed
further. In China a
major pilot project, with a fully integrated software system
beeing
implemented, was started during the review period.
January-March net sales totalled EUR 6.0 (7.3) million. Licence orders
received
totalled EUR 2.4 (4.8) million.
One-Stop-Partner
Demand for extensive One-Stop-Partner projects dried up
during
the final quarter of 2008 and there has been no
recovery during the review
period. Customers' interest was directed at
capacity expansion and upgrade
projects.
Total sales of One-Stop-Partner
deliveries totalled EUR 1.2 (2.1) million in
January-March. The unit's
earnings are included in Glaston's reporting segments.
The market for solar
energy One-Stop-Partner projects still exists and Glaston's
position in this
customer segment is strong. The economic downturn and the
uncertainty in
the financial markets have postponed customers' investment
decisions,
however.
Orders received
Glaston's order intake during the first quarter was EUR 24.5 (68.3)
million. Of
orders received, Heat Treatment accounted for 57.5%,
Pre-processing 32.7% and
Software Solutions 9.8%.
Geographical distribution of orders
received, EUR million
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|
| 1-3/2009 | 1-3/2008 | Change, %
|
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|
EMEA | 13.3 | 42.4 | -68.6
|
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|
America | 7.3 | 11.3 | -35.4
|
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|
Asia | 3.8 | 14.5 | -73.7
|
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---
|
Total | 24.5 | 68.3 | -64.1
|
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---
Order
book
Glaston's order book on 31 March, 2009 was EUR 45.9 (96.9) million. The Heat
Treatment business area accounted for EUR 28.7 million of the order book,
Pre-processing for EUR 13.5 million and Software Solutions for EUR 3.7
million.
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|
Order book, EUR million | 31.3.2009 | 31.3.2008
|
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|
Pre-processing | 13.5 | 21.0
|
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---
|
Heat Treatment | 28.7 | 66.4
|
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|
Software Solutions | 3.7 | 9.5
|
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|
Total | 45.9 | 96.9
|
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---
Net
sales and operating result
Glaston's net sales in the review period were EUR 39.2 (63.1) million.
Pre-processing's net sales in January-March were EUR 11.1 (22.9) million,
Heat
Treatment's net sales EUR 22.2 (32.9) million and Software Solutions'
net sales
EUR 6.0 (7.3) million.
Exceptionally weak demand affected net sales in the financial
period. The
prevailing uncertainty in the market influenced customers'
investment decisions
and led to the postponement of projects.
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|
Net sales, EUR million | 1-3/2009 | 1-3/2008 | 1-12/2008
|
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|
Pre-processing | 11.1 | 22.9 | 89.7
|
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---
|
Heat Treatment | 22.2 | 32.9 | 152.9
|
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---
|
Software Solutions | 6.0 | 7.3 | 28.2
|
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---
|
Parent company, elim. | 0.0 | 0.0 | -0.3
|
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---
|
Total | 39.2 | 63.1 | 270.4
|
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---
The
operating result in January-March was a loss of EUR 9.0 (1.6 profit)
million, representing -22.9 (+2.6)% of net sales. Of the first-quarter
operating
loss, the Pre-processing business area accounted for EUR -4.4
million, Heat
Treatment for EUR -2.6 million and Software Solutions for
EUR -0.4 million.
Pre-processing's weaker than expected operating
result was due to very weak
demand and tightened price competition.
Tamglass Glass Processing's operating
loss of EUR 2.2 (1.6 loss) million
significantly weakened the result
of the Heat Treatment business area. The
figure also includes the
operating loss for the business operations sold at the
end of the review
period. The Heat Treatment business area's operating result
was also
weakened by a sharp decline in sales.
Operational adjustment and efficiency measures were insufficient to balance
the
significantly declining net sales.
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|
Operating result, EUR million | 1-3/2009 | 1-3/2008 | 1-12/2008
|
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---
|
Pre-processing | -4.4 | 0.6 | -3.0
|
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---
|
Heat Treatment | -2.6 | 1.9 | 13.0
|
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---
|
Software Solutions | -0.4 | 1.0 | 3.7
|
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---
|
Parent company, elim. | -1.6 | -1.8 | -7.5
|
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---
|
Operating result, total | -9.0 | 1.6 | 6.2
|
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---
|
Non-recurring items | - | - | -12.3
|
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---
|
Operating result after | -9.0 | 1.6 | -6.1
|
| non-recurring items | | |
|
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---
The
result for the financial period was a loss of EUR 8.1 (0.6 profit) million.
Return on capital employed (ROCE) was -17.1 (+4.1)% and earnings per share
were
EUR -0.10 (0.01).
Efficiency programme
To improve profitability, Glaston initiated efficiency measures in
all units in
September 2008. The objective of the efficiency programme is to
improve the
profitability of the whole group and of the Pre-processing
business area in
particular, as well as to adjust the operations to the
market situation.
In January-March Glaston continued the measures it
had initiated. Negotiations
held with personnel representatives in Finland
were completed in March. The
outcome was that all Glaston Finland Oy
personnel excluding maintenance staff, a
total around 200 people, were decided
to be temporarily laid off for 10-18
weeks.
In the Pre-processing business
area, 25% of personnel, i.e. 100 people, have
been regularly temporarily
laid off since December 2008. Personnel reductions
and adjustments will
also be made in a number of the Group's other units, and
these will be
implemented mainly during the first half of the 2009.
During
the first quarter, Glaston announced the redundancy of 155 employees, and
of
these the employment relationship of 65 has already ended. In addition,
temporary subcontracted workers were reduced by 44.
In the review period, Glaston initiated a rationalisation programme, the
emphasis of which was on the restructuring of machine operations. A
production
unit situated in Mexico was closed in March, and in April Glaston
announced that
it will close its factory in Cinnaminson in the USA. The
streamlining of the
Group structure will also continue.
The cost savings from the efficiency measures
initiated now and earlier are
estimated to total EUR 15 million. Related
one-off costs for the year 2009 are
estimated to EUR 3.7 million. The
savings will be implemented mainly during
2009. The cost savings of the
first quarter (excluding material expenses)
totalled EUR 3.7 million
compared with the corresponding period in the previous
year.
Financing
The Group's
financial position remained reasonable, even though net gearing
continued
to grow during the review period. In addition to dividends paid during
the
financial period, the Group's financial position was affected mainly by
changes in net working capital and cash flow from operating activities. Net
working capital was reduced as part of the initiated efficiency programme
(EUR +4.4 million), but cash flow from operating activities excluding the
change
in net working capital was negative (EUR -8.1 million) in the period
under
review. Cash flow from investing activities was EUR -2.9 (-3.1)
million. Cash
flow from financing activities in January-March was EUR 3.2
(8.4) million,
including dividends paid in the review period of EUR 3.6
(7.2) million.
The equity ratio on 31 March, 2009 was 44.3 (52.2)%.
The Group's liquid funds at the end of the
period totalled EUR 8.8 (16.4)
million. Interest-bearing net debt
totalled EUR 66.2 (20.6) million and net
gearing was 58.7 (15.7)%. To
ensure liquidity, the Group has a EUR 65 million
committed revolving credit
facility. At the end of March, EUR 32.2 million of
the facility was in use.
Capital expenditure
and depreciation
Glaston's gross
capital expenditure totalled EUR 4.1 (3.3) million. The most
significant
capital expenditure was related to the global ERP project as well as
to a
joint venture founded in connection with the sale of the glass processing
operations.
During the financial period, depreciation and amortisation of property,
plant
and equipment as well as intangible assets totalled EUR 2.2 (2.0)
million. In
addition, impairment losses totalling EUR 0.4 (0.0) million on
property, plant
and equipment as well as intangible assets were recognised
in the period.
Group structural changes
As part of an efficiency programme initiated last
year, operations of Uniglass
Engineering Oy were transferred to Glaston's
factory in Tampere, Finland.
Operations at the Uniglass factory in
Ylöjärvi, Finland ended on 31 March, 2009.
Glaston's Tamglass Glass
Processing Ltd. sold its insulation and architectural
glass processing
operations to INTERPANE Glass Oy in March. Around 90 people
were employed
in the sold operations. The net sales of the sold operations
totalled
around EUR 14 million in 2008. As of 1 April, 2009, glass processing
operations consists only of solar reflector production at Akaa, Finland,
where
around 30 people are employed. INTERPANE Glass Oy is a joint venture
company of
Glaston.
Personnel
On 31 March, 2009, Glaston had a total of 1,480 (1,489)
employees, including the
93 Tamglass Glass Processing Ltd.'s employees who
transferred to INTERPANE Glass
Oy on 1 April, 2009. Of the Group's employees,
28% were in Finland and 48%
elsewhere in Europe, mainly in Germany and
Italy. The proportion of Group
employees working in Asia was 10% and in
the Americas 14%. The average number of
employees was 1,490 (1,462). Personnel
reductions resulting from the adjustment
of operations will be implemented
mainly during the second quarter of the year.
Shares and share prices
Glaston Corporation's paid
and registered share capital
on 31 March, 2009 was
EUR 12.7 million and the number of issued shares totalled
79,350,000. The
company has one series of share. At the end of March, the
company held
813,906 of the company's own shares (treasury shares),
corresponding to 1% of the total number of issued shares and votes. The
counter
book value of treasury shares is EUR 130,225. Every share that the
company does
not hold itself entitles its owner to one vote at the Annual
General Meeting.
The share has no nominal value. The counter book value of
each share is EUR
0.16.
On 31 March, 2009, the market capitalisation of the
company's shares, treasury
shares excluded, was EUR 78.5 (251.0) million.
During the first quarter of the year, a total
of around 2.2 million of the
company's shares were traded, representing
2.8% of the total number of shares.
The lowest price paid for a share was
EUR 0.92 and the highest price EUR 1.15.
The volume- weighted average price
of shares traded during the review period was
EUR 1.02.
The equity per share
attributable to the owners of the parent was EUR 1.43
(1.68).
Decisions of the
Annual General Meeting
The Annual
General Meeting of Glaston
Corporation
was held in Helsinki on 17 March, 2009. The Annual General Meeting
approved
the financial statements and consolidated financial statements for 2008
and
released the Board of Directors and the President & CEO from liability for
the financial period 1 January-31 December, 2008.
The Annual General Meeting approved a dividend of EUR 0.05 per share,
representing a maximum total sum of around EUR 4.0 million.
The Annual General Meeting confirmed that the following will
continue on the
Board of Directors for a year-long term of office: Claus
von Bonsdorff, Klaus
Cawén, Jan Lång, Carl-Johan Rosenbröijer, Christer
Sumelius and Andreas
Tallberg. The Annual General Meeting decided to
maintain the Chairman of the
Board's annual remuneration at EUR 40,000 and
the Deputy Chairman's annual
remuneration at EUR 30,000. It was also
decided to maintain the remuneration of
the other Members of the Board at
EUR 20,000 per year. The Board of Directors
elected in its meeting on 17
March, 2009, Andreas Tallberg to continue as the
Chairman of the Board and
Christer Sumelius to continue as the Deputy Chairman
of the Board.
The Annual General
Meeting re-elected as auditor the authorised public
accounting firm
KPMG Oy Ab, with the responsible auditor being Sixten Nyman,
APA.
The
Annual General Meeting approved amendments to the Articles of Association,
as follows: (i) that Section 2 of the Articles of Association be amended by
removing energy production from the field of operations; (ii) that Section
11 of
the Articles of Association be amended such that notice to the General
Meeting
be delivered no later than 21 days before the General Meeting; (iii)
that
Section 12 of the Articles of Association be amended such that
advance notice of
participation in an Annual General Meeting shall be given no
later than a given
date, not to be earlier than 10 days before the Annual
General Meeting.
Authorisations given by the Annual General Meeting
The Annual General Meeting of Glaston
Corporation held on 17 March, 2009
authorised the Board of Directors
to decide on the acquisition of the Company's
own shares up to a maximum of
7,000,000 shares. The shares may be acquired to
improve the capital
structure of the Company and/or to be used as consideration
in future
acquisitions or other arrangements that are part of Company's business
or as
part of the Company's share-based incentive scheme, or to finance
investments. The shares acquired for the Company may be held, cancelled or
conveyed. The authorisation is valid for 18 months from the decision of the
Annual General Meeting.
The Annual General Meeting also authorised the Board of Directors to
decide on
the issue of new shares and/or the conveyance of the own shares
held by the
Company. By virtue of the authorisation, the Board of
Directors is entitled to
decide on the issuance of a maximum of 7,800,000
new shares and on the
conveyance of a maximum of 7,800,000 own
shares held by the Company. However,
the total number of shares to be
issued and/or conveyed may not exceed 7,800,000
shares. The new shares may be
issued and own shares held by the Company conveyed
either against payment or
without payment. The new shares may be issued and/or
own shares held by the
Company conveyed to the Company's shareholders in
proportion to their
existing shareholdings in the Company, or by means of a
directed share
issue, waiving the pre-emptive subscription right of the
shareholders, if there is a weighty reason for the Company to do so, such as
the
shares to be used to improve the capital structure of the Company or as
consideration in future acquisitions or other arrangements that are part
of the
Company's business or as part of Company's or its subsidiaries'
incentive
schemes. Shares can be issued or conveyed without payment in
exception to the
pre-emptive subscription right of shareholders only if
there is an especially
weighty reason for the Company to do so, taking the
interests of all
shareholders into account.
The Board of Directors may decide on the
issue of shares without payment also to
the Company itself. The number of
shares to be issued to the Company combined
with the number of shares
acquired for the Company under the share acquisition
authorization may not
exceed 1/10 of the total number of shares of the Company.
The subscription
price of new shares issued and the consideration paid for the
conveyance of
the Company's own shares shall be credited to the reserve for
invested
unrestricted equity. By virtue of the share issue authorisation, the
Board
of Directors shall decide on other matters relating to the issuing and
conveyance of shares. The authorisation is valid until the end of the 2011
Annual General Meeting.
The Board of Directors has no other authorisations.
Conveyance of own shares
The 2007 Annual General Meeting authorised the Board
of Directors to decide on the conveyance of own shares in the
Company's
possession (treasury shares). The authorisation was valid
until the end of the
2009 Annual General Meeting. During January-March, the
company did not convey
any of its own shares.
Events after the review period
Henrik Reims was appointed Senior Vice
President, Sales and Marketing as of
1 April, 2009. The Senior Vice
President, Sales and Marketing's area of
responsibility includes
One-Stop-Partner deliveries.
Glaston announced
in a stock exchange release published on 22 April, 2009 that
it will merge
the Pre-processing and Heat Treatment business areas into a single
new
business area: Machines. Topi Saarenhovi, SVP of the Heat Treatment
business
area was appointed SVP of the Machines business area. At the same
time, Paolo
Ceni, SVP of the Pre-processing business area, resigned from
Glaston's service.
The cost-savings generated by combining the business
areas and improving
productivity are estimated to be around EUR 3.5
million on an annual basis.
These will be realised in full from 2010. The
combining of the business areas
will cause estimated non-recurring costs of
EUR 3.7 million, which will be
recognised mainly in the second quarter
2009.
The merger of the business areas
will change Glaston's reporting segments. The
second interim report of 2009,
to be published on 12 August, 2009, will be
reported according to the
new business structure.
Uncertainties in the
near future
As the global
financial crisis and the economic
downturn
continue, Glaston's current markets have substantially changed. The
world's economic situation has had a significant adverse effect on the
opportunities for Glaston's customers to invest. The instability had a
particularly strong impact on large One-Stop-Partner orders.
Owing to the recession, demand for glass processing machines will
continue to be
weak. Customers' financing difficulties mean that orders might
be postponed and
those already confirmed may be cancelled. Customers'
financial situation also
impacts on the collection of receivables and on
credit losses.
Risks relating to raw materials have
decreased. Raw material prices have
levelled off and subcontracting
capacity problems have nearly disappeared.
Outlook
The inactive market will
have a considerable impact on Glaston's
business in 2009.
Adjusting operations to the prevailing market situation will
continue.
The
cornerstones of Glaston's business remain the architectural glass segment
and the solar energy market. In the economic downturn, the significance of
service and maintenance business will increase.
Market prospects for the first part of the year were very weak, and no
signs of
a recovery in the market are perceptible. Prospects for service and
maintenance
business are reasonable. The emphasis of new machine business
will be on sales
of single machines. No significant demand for
One-Stop-Partner projects is
perceptible in the second quarter of the
year. Demand for glass processing
machines in the latter part of the
year is very difficult to forecast in the
present uncertain economic
climate.
Due to a weak order
book for the beginning of 2009 and exceptionally low demand,
Glaston expects
2009 net sales to fall short of the 2008 level and the operating
result to
remain loss-making in the second quarter of the year.
Helsinki, 5 May 2009
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 6105
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 share (GLA1V) is listed on the OMX
Nordic Exchange Helsinki Mid Cap
List.
www.glaston.net
Distribution:
OMX
Main media
www.glaston.net
GLASTON CORPORATION
CONDENSED INTERIM
FINANCIAL STATEMENTS AND NOTES 1 JANUARY - 31 MARCH 2009
These
condensed interim financial statements are not audited.
As
a result of rounding differences, the figures presented in the tables may
not
add up to the total.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
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|
EUR million | 31.3.2009 | 31.3.2008 | 31.12.2008
|
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|
Assets | | |
|
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|
Non-current assets | | |
|
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---
|
Property, plant and equipment | 29.7 | 34.0 | 35.0
|
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---
|
Goodwill | 66.2 | 67.6 | 66.2
|
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|
Other intangible assets | 23.5 | 19.1 | 22.5
|
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|
Joint ventures and associates and | 1.8 | 0.8 | 0.9
|
| loan receivables from joint | | |
|
| ventures | | |
|
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|
Available-for-sale assets | 0.3 | 0.2 | 0.3
|
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|
Deferred tax assets | 9.0 | 4.2 | 7.9
|
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---
|
Total non-current assets | 130.4 | 125.8 | 132.9
|
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|
Current assets | | |
|
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|
Inventories | 51.9 | 52.0 | 53.9
|
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|
Receivables | | |
|
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|
Trade and other receivables | 75.7 | 84.5 | 83.3
|
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|
Assets for current tax | 3.4 | 1.5 | 4.4
|
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|
Total receivables | 79.1 | 86.0 | 87.6
|
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|
Cash equivalents | 8.8 | 16.4 | 11.5
|
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|
Assets held for sale | - | 0.3 | -
|
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---
|
Total current assets | 139.8 | 154.7 | 153.1
|
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---
|
Total assets | 270.2 | 280.5 | 285.9
|
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---
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-----
|
| 31.3.2009 | 31.3.2008 | 31.12.2008
|
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---
|
Equity and liabilities | | |
|
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---
|
Equity | | |
|
-----------------------------------------------------------------------------
---
|
Share capital | 12.7 | 12.7 | 12.7
|
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---
|
Share premium account | 25.3 | 25.3 | 25.3
|
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---
|
Other reserves | 0.0 | - | -
|
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---
|
Reserve for invested unrestricted | 0.2 | 0.3 | 0.2
|
| equity | | |
|
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---
|
Treasury shares | -3.5 | -3.9 | -3.5
|
-----------------------------------------------------------------------------
---
|
Fair value reserve | 0.0 | - | 0.0
|
-----------------------------------------------------------------------------
---
|
Hedging reserve | - | 0.0 | -
|
-----------------------------------------------------------------------------
---
|
Retained earnings and exchange | 85.8 | 96.7 | 98.2
|
| differences | | |
|
-----------------------------------------------------------------------------
---
|
Net result attributable to owners | -8.1 | 0.6 | -9.1
|
| of the parent | | |
|
-----------------------------------------------------------------------------
---
|
Equity attributable to owners of | 112.4 | 131.6 | 123.7
|
| the parent | | |
|
-----------------------------------------------------------------------------
---
|
Non-controlling interest | 0.4 | 0.0 | 0.0
|
-----------------------------------------------------------------------------
---
|
Total equity | 112.8 | 131.7 | 123.8
|
-----------------------------------------------------------------------------
---
|
Non-current liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Non-current interest-bearing | 16.3 | 1.9 | 16.4
|
| liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Non-current interest-free | 7.6 | 8.7 | 8.0
|
| liabilities and provisions | | |
|
-----------------------------------------------------------------------------
---
|
Deferred tax liabilities | 8.5 | 8.6 | 8.4
|
-----------------------------------------------------------------------------
---
|
Total non-current liabilities | 32.4 | 19.2 | 32.9
|
-----------------------------------------------------------------------------
---
|
Current liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Current interest-bearing | 58.7 | 35.1 | 53.0
|
| liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Current provisions | 8.9 | 2.7 | 10.6
|
-----------------------------------------------------------------------------
---
|
Trade and other payables | 56.4 | 90.2 | 63.8
|
-----------------------------------------------------------------------------
---
|
Liabilities for current tax | 1.0 | 1.6 | 1.9
|
-----------------------------------------------------------------------------
---
|
Total current liabilities | 125.0 | 129.6 | 129.3
|
-----------------------------------------------------------------------------
---
|
Total liabilities | 157.4 | 148.8 | 162.2
|
-----------------------------------------------------------------------------
---
|
Total equity and liabilities | 270.2 | 280.5 | 285.9
|
-----------------------------------------------------------------------------
---
CONDENSED
CONSOLIDATED INCOME STATEMENT
----------------------------------------------------------------------------
----
|
EUR million | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 39.2 | 63.1 | 270.4
|
-----------------------------------------------------------------------------
---
|
Other operating income | 0.4 | 0.2 | 0.4
|
-----------------------------------------------------------------------------
---
|
Expenses | -46.0 | -59.6 | -265.8
|
-----------------------------------------------------------------------------
---
|
Share of associates and joint ventures' | - | 0.0 | 0.0
|
| result | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation, amortization and | -2.6 | -2.0 | -11.2
|
| impairment | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit / loss | -9.0 | 1.6 | -6.1
|
-----------------------------------------------------------------------------
---
|
Gains from assets held for sale | - | - | 0.1
|
-----------------------------------------------------------------------------
---
|
Other financial items, net | 0.0 | -0.5 | -2.1
|
-----------------------------------------------------------------------------
---
|
Result before income taxes | -9.0 | 1.1 | -8.1
|
-----------------------------------------------------------------------------
---
|
Income taxes | 0.9 | -0.5 | -1.1
|
-----------------------------------------------------------------------------
---
|
Profit / loss for the period | -8.1 | 0.6 | -9.2
|
-----------------------------------------------------------------------------
---
|
Attributable to: | | |
|
-----------------------------------------------------------------------------
---
|
Non-controlling interests | 0.0 | 0.0 | 0.0
|
-----------------------------------------------------------------------------
---
|
Owners of the parent | -8.1 | 0.6 | -9.1
|
-----------------------------------------------------------------------------
---
|
Total | -8.1 | 0.6 | -9.2
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Earnings per share, EUR, basic and | -0.10 | 0.01 | -0.12
|
| diluted | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit / loss, as % of net | -22.9 | 2.6 | -2.3
|
| sales | | |
|
-----------------------------------------------------------------------------
---
|
Profit / loss for the period, as % of | -20.6 | 0.9 | -3.4
|
| net sales | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Non-recurring items included in | - | - | -12.3
|
| operating profit / loss | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit / loss, non-recurring | -9.0 | 1.6 | 6.2
|
| items excluded | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit / loss, non-recurring | -22.9 | 2.6 | 2.3
|
| items excluded, as % of net sales | | |
|
-----------------------------------------------------------------------------
---
CONSOLIDATED
STATEMENT OF COMPEREHENSIVE INCOME
----------------------------------------------------------------------------
----
|
EUR million | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Profit / loss for the period | -8.1 | 0.6 | -9.2
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Other comprehensive income | | |
|
-----------------------------------------------------------------------------
---
|
Total exchange differences on | 0.6 | -1.0 | 0.7
|
| translating foreign operations | | |
|
-----------------------------------------------------------------------------
---
|
Effective portion of fair value changes | - | 0.0 | -
|
| of cash flow hedges | | |
|
-----------------------------------------------------------------------------
---
|
Fair value changes of cash flow hedges | - | - | 0.0
|
| reclassified in profit or loss | | |
|
-----------------------------------------------------------------------------
---
|
Fair value changes of available-for-sale | 0.0 | - | 0.0
|
| shares | | |
|
-----------------------------------------------------------------------------
---
|
Other reclassifications | 0.0 | - | 0.0
|
-----------------------------------------------------------------------------
---
|
Income tax on other comprehensive income | 0.0 | 0.0 | 0.0
|
-----------------------------------------------------------------------------
---
|
Other comprehensive income for the | 0.6 | -1.0 | 0.7
|
| reporting period, net of tax | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total comprehensive income for the | -7.4 | -0.4 | -8.5
|
| reporting period | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Attributable to | | |
|
-----------------------------------------------------------------------------
---
|
Owners of the parent | -7.4 | -0.4 | -8.5
|
-----------------------------------------------------------------------------
---
|
Non-controlling interest | 0.0 | 0.0 | 0.0
|
-----------------------------------------------------------------------------
---
|
Total comprehensive income for the | -7.4 | -0.4 | -8.5
|
| reporting period | | |
|
-----------------------------------------------------------------------------
---
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------------------------------------
----
|
EUR million | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Cash flows from operating activities | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow before change in net working | -8.1 | 0.4 | 7.2
|
| capital | | |
|
-----------------------------------------------------------------------------
---
|
Change in net working capital | 4.4 | -0.6 | -30.4
|
-----------------------------------------------------------------------------
---
|
Net cash flow from operating activities | -3.8 | -0.2 | -23.3
|
-----------------------------------------------------------------------------
---
|
Cash flow from investing activities | | |
|
-----------------------------------------------------------------------------
---
|
Business combinations | - | - | 0.7
|
-----------------------------------------------------------------------------
---
|
Other purchases of non-current assets | -2.3 | -3.1 | -14.5
|
-----------------------------------------------------------------------------
---
|
Investment in shares in joint ventures | -1.8 | - | -
|
-----------------------------------------------------------------------------
---
|
Other | 0.1 | - | -
|
-----------------------------------------------------------------------------
---
|
Proceeds from sale of non-current assets | 1.0 | 0.0 | 0.4
|
-----------------------------------------------------------------------------
---
|
Net cash used in investing activities | -2.9 | -3.1 | -13.4
|
-----------------------------------------------------------------------------
---
|
Cash flow before financing | -6.7 | -3.2 | -36.7
|
-----------------------------------------------------------------------------
---
|
Cash flow from financing activities | | |
|
-----------------------------------------------------------------------------
---
|
Changes in non-current liabilities | - | - | 17.5
|
| (increase + / decrease -) | | |
|
-----------------------------------------------------------------------------
---
|
Changes in non-current loan receivables | 0.0 | - | 0.3
|
| (increase - / decrease +) | | |
|
-----------------------------------------------------------------------------
---
|
Short-term financing, net (increase + / | 5.6 | 15.6 | 27.9
|
| decrease -) | | |
|
-----------------------------------------------------------------------------
---
|
Dividends paid | -3.6 | -7.2 | -7.8
|
-----------------------------------------------------------------------------
---
|
Other financing | 1.2 | - | 0.0
|
-----------------------------------------------------------------------------
---
|
Net cash used in financing activities | 3.2 | 8.4 | 37.8
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Effect of exchange rate changes | 0.8 | -0.2 | -1.0
|
-----------------------------------------------------------------------------
---
|
Net change in cash and cash equivalents | -2.7 | 5.0 | 0.1
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents at the | 11.5 | 11.4 | 11.4
|
| beginning of period | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents at the end of | 8.8 | 16.4 | 11.5
|
| period | | |
|
-----------------------------------------------------------------------------
---
|
Net change in cash and cash equivalents | -2.7 | 5.0 | 0.1
|
-----------------------------------------------------------------------------
---
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------
------
|
EUR million | Share | Share | Other | Reserve | Treasu | Fair
|
| | capital| premiu | reser- | for | ry |
value |
| | | m acc. | ves | invested | shares |
reserve |
| | | | | unrestr. |
| |
| | | | | equity |
|
|
-----------------------------------------------------------------------------
---
|
Equity at 1 | 12.7 | 25.3 | - | 0.3 | -3.9 | -
|
| January, 2008 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity at 31 | 12.7 | 25.3 | - | 0.3 | -3.9 | -
|
| March, 2008 | | | | | |
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
| Share | Share | Other | Reserve | Treasury | Fair
|
| | capital | premiu | reserves | for | shares |
value |
| | | m acc. | | invested |
| reser- |
| | | | | unrestr. |
| ve |
| | | | | equity |
|
|
-----------------------------------------------------------------------------
---
|
Equity at 1 | 12.7 | 25.3 | - | 0.2 | -3.5 | 0.0
|
| January, 2009 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | - | - | 0.0 | - | - | 0.0
|
| comprehensive | | | | | |
|
| income for the | | | | | |
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other changes | - | - | - | 0.0 | 0.0 | -
|
| in treasury | | | | | |
|
| shares | | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity at 31 | 12.7 | 25.3 | 0.0 | 0.2 | -3.5 | 0.0
|
| March, 2009 | | | | | |
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
| Hedging | Retained| Exch. | Equity | Non-cont | Total
|
| | reserve | | diff. | attrib. | rolling |
equity |
| | | earnings| | to owners| interest
| |
| | | | | of the |
| |
| | | | | parent |
|
|
-----------------------------------------------------------------------------
---
|
Equity at 1 | 0.0 | 106.8 | -1.2 | 139.9 | 0.0 | 139.9
|
| January, 2008 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 0.0 | 0.6 | -1.0 | -0.4 | 0.0 | -0.4
|
| comprehensive | | | | | |
|
| income for | | | | | |
|
| the period | | | | | |
|
-----------------------------------------------------------------------------
---
|
Share-based | - | 0.0 | - | 0.0 | - | 0.0
|
| incentive | | | | | |
|
| plan | | | | | |
|
-----------------------------------------------------------------------------
---
|
Share-based | - | 0.0 | - | 0.0 | - | 0.0
|
| incentive | | | | | |
|
| plan, tax | | | | | |
|
| effect | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividends | - | -7.8 | - | -7.8 | - | -7.8
|
| paid | | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity at 31 | 0.0 | 99.5 | -2.2 | 131.6 | 0.0 | 131.7
|
| March, 2008 | | | | | |
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
EUR million | Hedging| Retained| Exch. | Equity | Non-cont | Total
|
| | | | diff. | attrib. | rolling |
equity |
| | reser- | earnings| | to | interest
| |
| | ve | | | owners |
| |
| | | | | of the |
| |
| | | | | parent |
|
|
-----------------------------------------------------------------------------
---
|
Equity at 1 | - | 89.6 | -0.5 | 123.7 | 0.0 | 123.8
|
| January, 2009 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | - | -8.1 | 0.6 | -7.4 | 0.0 | -7.4
|
| comprehensive | | | | | |
|
| income for the | | | | | |
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other changes in | - | - | - | - | 0.4 | 0.4
|
| non-controlling | | | | | |
|
| interest | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other changes in | - | - | - | - | - | -
|
| treasury shares | | | | | |
|
-----------------------------------------------------------------------------
---
|
Share-based | - | 0.0 | - | 0.0 | - | 0.0
|
| incentive plan | | | | | |
|
-----------------------------------------------------------------------------
---
|
Share-based | - | 0.0 | - | 0.0 | - | 0.0
|
| incentive plan, | | | | | |
|
| tax effect | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividends paid | - | -3.9 | - | -3.9 | - | -3.9
|
-----------------------------------------------------------------------------
---
|
Equity at 31 | - | 77.6 | 0.1 | 112.4 | 0.4 | 112.8
|
| March, 2009 | | | | | |
|
-----------------------------------------------------------------------------
---
KEY
RATIOS
------------------------------------------------------------------------------
--
|
| 31.3.2009 | 31.3.2008 | 31.12.2008
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
EBITDA, as % of net sales (1 | -16.2 | 5.7 | 1.9
|
-----------------------------------------------------------------------------
---
|
Operating profit / loss (EBIT), as % | -22.9 | 2.6 | -2.3
|
| of net sales | | |
|
-----------------------------------------------------------------------------
---
|
Net result, as % of net sales | -20.6 | 0.9 | -3.4
|
-----------------------------------------------------------------------------
---
|
Gross capital expenditure, EUR | 4.1 | 3.3 | 18.4
|
| million | | |
|
-----------------------------------------------------------------------------
---
|
Gross capital expenditure, as % of | 10.4 | 5.2 | 6.8
|
| net sales | | |
|
-----------------------------------------------------------------------------
---
|
Equity ratio, % | 44.3 | 52.2 | 45.8
|
-----------------------------------------------------------------------------
---
|
Gearing, % | 66.5 | 28.1 | 56.1
|
-----------------------------------------------------------------------------
---
|
Net gearing, % | 58.7 | 15.7 | 46.8
|
-----------------------------------------------------------------------------
---
|
Net interest-bearing debt, EUR | 66.2 | 20.6 | 57.9
|
| million | | |
|
-----------------------------------------------------------------------------
---
|
Capital employed, end of period, EUR | 187.8 | 168.7 | 193.2
|
| million | | |
|
-----------------------------------------------------------------------------
---
|
Return on equity, %, annualized | -27.3 | 1.7 | -7.0
|
-----------------------------------------------------------------------------
---
|
Return on capital employed, %, | -17.1 | 4.1 | -2.3
|
| annualized | | |
|
-----------------------------------------------------------------------------
---
|
Number of personnel, average | 1,490 | 1,462 | 1,519
|
-----------------------------------------------------------------------------
---
|
Number of personnel, end of period | 1,480 | 1,489 | 1,541
|
-----------------------------------------------------------------------------
---
(1
EBITDA = Operating profit / loss + depreciation, amortization and
impairment.
-----------------------------------------------------------------
---------------
|
PER SHARE DATA | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
| 31.3. | 31.3. | 31.12.
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Number of shares, end of period, | 78,536 | 78,437 | 78,540
|
| treasury shares excluded (1,000) | | |
|
-----------------------------------------------------------------------------
---
|
Number of shares, average, treasury | 78,536 | 78,437 | 78,507
|
| shares excluded (1,000) | | |
|
-----------------------------------------------------------------------------
---
|
EPS, EUR (* | -0.10 | 0.01 | -0.12
|
-----------------------------------------------------------------------------
---
|
Equity attributable to owners of the | 1.43 | 1.68 | 1.58
|
| parent per share, EUR | | |
|
-----------------------------------------------------------------------------
---
|
Price per earnings per share (P/E) | -9.2 | 430.5 | -7.8
|
| ratio | | |
|
-----------------------------------------------------------------------------
---
|
Price per equity attributable to | 0.66 | 1.91 | 0.58
|
| owners of the parent per share | | |
|
-----------------------------------------------------------------------------
---
|
Market capitalization, EUR million | 74.6 | 251.0 | 71.5
|
-----------------------------------------------------------------------------
---
|
Share turnover, % (number of shares | 2.8 | 1.0 | 5.1
|
| traded, % of the average number of | | |
|
| shares) | | |
|
-----------------------------------------------------------------------------
---
|
Number of shares traded, (1,000) | 2,193 | 781 | 3,965
|
-----------------------------------------------------------------------------
---
|
Closing price of the share, EUR | 0.95 | 3.20 | 0.91
|
-----------------------------------------------------------------------------
---
|
Highest quoted price, EUR | 1.15 | 3.30 | 3.33
|
-----------------------------------------------------------------------------
---
|
Lowest quoted price, EUR | 0.92 | 2.70 | 0.87
|
-----------------------------------------------------------------------------
---
|
Volume-weighted average quoted price, | 1.15 | 3.06 | 2.07
|
| EUR | | |
|
-----------------------------------------------------------------------------
---
(*
Glaston Corporation has not issued options or warrants or similar
instruments
which would dilute the earnings per share.
DEFINITIONS OF KEY RATIOS
Financial ratios
EBITDA = Profit / loss before depreciation,
amortization and impairment, share
of joint ventures' and associates'
results included
Operating profit (EBIT) =
Profit / loss after depreciation, amortization and
impairment, share of
joint ventures' and associates' results included
Cash and cash
equivalents = Cash + other financial assets
Net
interest-bearing debt = Interest-bearing liabilities - cash and cash
equivalents
Financial expenses = Interest expenses of financial liabilities + fees of
financing arrangements + foreign currency differences of financial
liabilities
Equity ratio, % = Equity (Equity attributable to owners of the
parent +
non-controlling interest) x 100 / Total assets - advance
payments received
Gearing, % = Interest-bearing liabilities x 100 /
Equity (Equity attributable to
owners of the parent + non-controlling
interest)
Net gearing, % = Net
interest-bearing debt x 100 / Equity (Equity attributable
to owners of the
parent + non-controlling interest)
Return on
investments, % (ROCE) = Profit / loss before taxes + financial
expenses x 100 / Equity + interest-bearing liabilities (average of 1 January
and end of the reporting period)
Return on equity, % (ROE)= Profit / loss for the reporting period x
100 /
Equity (Equity attributable to owners of the parent +
non-controlling interest)
(average of 1 January and end of the reporting
period)
Per share data
Earnings per share (EPS) = Net result
attributable to owners of the parent /
Adjusted average number of shares
Equity attributable to owners
of the parent per share = Equity attributable to
owners of the parent at end
of the period / Adjusted number of shares at end of
the period
Average trading price
= Shares traded (EUR) / Shares traded (volume)
Price per
earnings per share (P/E) = Share price at end of the period /
Earnings per share (EPS)
Price per equity per share = Share price at period end / Equity
attributable to
owners of the parent per share
Share turnover = The proportion of number of shares
traded during the period to
average number of shares
Market capitalization = Number of shares at
end of the period x share price at
end of the period
Number of shares at period end =
Number of issued shares - treasury shares
ACCOUNTING POLICIES
These condensed
consolidated interim financial statements have been
prepared in
accordance with the IFRS recognition and measurement principles but
not
complying with all the requirements of IAS 34 Interim Financial Reporting.
The consolidated interim financial statements do not include all of the
information required for annual financial statements.
The accounting principles applied in these condensed interim
consolidated financial statements are the same as in the previous
financial
statements, with the exception of the following
new or revised or amended standards and interpretations,
which have
been applied from 1 January, 2009:
- IAS 23 (revised) Borrowing Costs
- IFRS 8 Operating Segments
- IFRIC 13 Customer Loyalty Programs
- Amendments to IFRS 2 Share-based Payments:
Vesting Conditions and
Cancellations
- Amendments to IAS 32 Financial
Instruments: Presentation and IAS 1
Presentation of Financial
Statements - Puttable Financial Instruments and
Obligations Arising on
Liquidation
- IFRIC 15
Agreements for the Construction of Real Estate
-
Amendment to IAS 39 Financial Instruments: Recognition and Measurement -
Eligible Hedged Items
- Amendments to IFRS 1 First-time Adoption of International Financial
Reporting
Standards and IAS 27 Consolidated and Separate Financial Statements
- Cost of
an Investment in a Subsidiary, Jointly Controlled Entity or
Associate.
- Amendments to IFRS 7 Financial Instruments: Disclosures
- Improving
Disclosures about Financial Instruments
- Amendments to IFRIC 9 and IAS 39: Embedded
Derivatives
In addition, Glaston applies the annual
Improvements to IFRSs issued in May
2008.
Applying revised IAS 23 Borrowing
Costs changed Glaston's accounting principles
from 1 January 2009. From that
date on the borrowing costs that are directly
attributable to the
acquisition, construction or production of a qualifying
asset are
capitalized to the acquisition cost of the asset. The capitalization
will
apply mainly to property, plant and equipment and intangible assets.
Applying IFRS 8 Operating Segments did not have any material effect on the
financial information of Glaston.
Other new or amended standards or interpretations are not material
for Glaston
Group.
DIVESTMENTS
Glaston's subsidiary Tamglass Glass Processing Ltd. sold
in March its
insulated and architectural glass processing
operations to INTERPANE Glass Oy.
INTERPANE Glass Oy began its operations on
April, 2009. The divested operations
had net sales of approximately EUR 14
million in 2008 and 93 employees at the
end of March. The personnel were
transferred to INTERPANE Glass Oy.
The transaction was an asset
deal, consisting of, among others, tangible assets
and inventory. The deal
was financed mainly through vendor financing given by
Glaston. Glaston also
invested EUR 1.8 million in the equity of INTERPANE Glass
Oy. In addition,
Glaston is committed to invest additional EUR 1.0 million in
INTERPANE's
equity.
INTERPANE Glass Oy is a company owned jointly by Georg F. Hesselbach
through his
company A A A Glass & Design Finland Oy, and a subsidiary of
Glaston
Corporation. The shareholders of INTERPANE Glass Oy have
entered into a
shareholders' agreement which incorporates put and
call options enabling the
shareholders to rearrange their ownership shares
in the company in the future.
The transaction has no material effect on
Glaston's result.
INTERPANE Glass Oy is a joint venture
of Glaston, and it is consolidated in
Glaston's consolidated financial
statements using the equity method.
Glaston continues its
production of solar reflectors in Akaa, Finland, employing
approximately 30
persons.
CHANGES IN
JOINT VENTURES
The
Chinese company Sanhe AAA Tools Co. was consolidated in 2008 as a joint
venture using the equity method and not as a subsidiary despite of the 70 per
cent ownership of Glaston, because Glaston was not considered to have
control of
the company. From 1 January, 2009, Sanhe AAA Tools Co. has been
consolidated as
a subsidiary as Glaston has gained control of the company.
INTERPANE Glass Oy became a joint venture of Glaston on
31 March, 2009.
SEGMENT INFORMATION
The Pre-processing segment includes glass
pre-processing machines, maintenance
and service operations, as well as tool
manufacturing. The Heat Treatment
segment includes tempering, bending
and laminating machines, maintenance and
service operations, as well as
the glass processing operations of Tamglass Glass
Processing. The Software
Solutions segment's product offering covers enterprise
resource planning
systems for the glass industry, software for windows and door
glass
manufacturers, and software for glass processor's integrated line
solutions.
Glaston announced in a stock exchange release on 22 April, 2009 that it
changes
the reporting segments. The second quarter interim report of Glaston
will be
prepared in accordance with the new segments.
EUR million
----------------------------------------------------------------------------
----
|
Net sales | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 11.1 | 22.9 | 89.7
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 22.2 | 32.9 | 152.9
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 6.0 | 7.3 | 28.2
|
-----------------------------------------------------------------------------
---
|
Parent company and eliminations | 0.0 | 0.0 | -0.3
|
-----------------------------------------------------------------------------
---
|
Total | 39.2 | 63.1 | 270.4
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Operating profit / loss, excluding | 1-3/ | 1-3/ | 1-12/
|
| non-recurring items | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | -4.4 | 0.6 | -3.0
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | -2.6 | 1.9 | 13.0
|
-----------------------------------------------------------------------------
---
|
Software Solutions | -0.4 | 1.0 | 3.7
|
-----------------------------------------------------------------------------
---
|
Parent company and eliminations | -1.6 | -1.8 | -7.5
|
-----------------------------------------------------------------------------
---
|
Total | -9.0 | 1.6 | 6.2
|
-----------------------------------------------------------------------------
---
|
Non-recurring items | - | - | -12.3
|
-----------------------------------------------------------------------------
---
|
Operating profit / loss | -9.0 | 1.6 | -6.1
|
-----------------------------------------------------------------------------
---
|
Net financial items | 0.0 | -0.5 | -2.0
|
-----------------------------------------------------------------------------
---
|
Income taxes | 0.9 | -0.5 | -1.1
|
-----------------------------------------------------------------------------
---
|
Net result for the period | -8.1 | 0.6 | -9.2
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Operating profit / loss, excluding | 1-3/ | 1-3/ | 1-12/
|
| non-recurring items, as % of net sales | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | -39.4% | -2.5% | -3.3%
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | -11.7% | 5.7% | 8.5%
|
-----------------------------------------------------------------------------
---
|
Software Solutions | -6.0% | 13.2% | 13.3%
|
-----------------------------------------------------------------------------
---
|
Total | -22.9% | 2.6% | 2.3%
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Depreciation, amortization and | 1-3/ | 1-3/ | 1-12/
|
| impairment | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 0.5 | 0.4 | 2.1
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 1.1 | 0.9 | 6.5
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 0.8 | 0.4 | 1.7
|
-----------------------------------------------------------------------------
---
|
Parent company and eliminations | 0.3 | 0.2 | 0.9
|
-----------------------------------------------------------------------------
---
|
Total | 2.6 | 2.0 | 11.2
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Net working capital | 31.3.2009 | 31.3.2008 | 31.12.2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 34.1 | 26.0 | 31.8
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 41.5 | 37.6 | 54.9
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 7.1 | 5.3 | 5.8
|
-----------------------------------------------------------------------------
---
|
Parent company and eliminations | -0.5 | -0.8 | -0.4
|
-----------------------------------------------------------------------------
---
|
Total | 82.2 | 68.0 | 92.1
|
-----------------------------------------------------------------------------
---
In
segment reporting net working capital consists of inventory, external trade
receivables and trade payables and advances received.
----------------------------------------------------------------------------
----
|
Orders received | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 8.0 | 19.4 | 68.6
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 14.1 | 44.0 | 135.5
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 2.4 | 4.8 | 13.9
|
-----------------------------------------------------------------------------
---
|
Total | 24.5 | 68.3 | 218.0
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
Order book | 31.3.2009 | 31.3.2008 | 31.12.2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 13.5 | 21.0 | 13.0
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 28.7 | 66.4 | 46.0
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 3.7 | 9.5 | 3.5
|
-----------------------------------------------------------------------------
---
|
Total | 45.9 | 96.9 | 62.5
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Net sales by market area | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
EMEA | 26.2 | 43.2 | 175.6
|
-----------------------------------------------------------------------------
---
|
America | 9.3 | 11.9 | 56.0
|
-----------------------------------------------------------------------------
---
|
Asia | 3.8 | 8.0 | 38.8
|
-----------------------------------------------------------------------------
---
|
Total | 39.2 | 63.1 | 270.4
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Net sales by market area, % | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
EMEA | 66.8% | 68.5% | 55.8%
|
-----------------------------------------------------------------------------
---
|
America | 23.6% | 18.9% | 28.0%
|
-----------------------------------------------------------------------------
---
|
Asia | 9.6% | 12.7% | 16.2%
|
-----------------------------------------------------------------------------
---
|
Total | 100.0% | 100.0% | 100.0%
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
---------------------------------------------------------------------
-----------
-------------------------------------------------------------------
-------------
|
1-3/ | 1-3/ | change, % | 1-12/
|
| 2009 | 2008 | |
2008
|
-----------------------------------------------------------------------------
---
|
Geographical distribution |
|
| of orders received |
|
-----------------------------------------------------------------------------
---
|
EMEA | 13.3 | 42.4 | -68.6% | 144.8
|
-----------------------------------------------------------------------------
---
|
America | 7.3 | 11.3 | -35.4% | 45.9
|
-----------------------------------------------------------------------------
---
|
Asia | 3.8 | 14.5 | -73.7% | 27.3
|
-----------------------------------------------------------------------------
---
|
Total | 24.5 | 68.3 | -64.1% | 218.0
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Personnel at the end of the period | 31.3.2009 | 31.3.2008 | 31.12.2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 584 | 625 | 614
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 615 | 600 | 640
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 253 | 239 | 262
|
-----------------------------------------------------------------------------
---
|
Parent company | 27 | 25 | 26
|
-----------------------------------------------------------------------------
---
|
Total | 1,480 | 1,489 | 1,541
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Personnel, average | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 600 | 602 | 591
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 608 | 590 | 647
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 256 | 246 | 255
|
-----------------------------------------------------------------------------
---
|
Parent company | 27 | 24 | 26
|
-----------------------------------------------------------------------------
---
|
Total | 1,490 | 1,462 | 1,519
|
-----------------------------------------------------------------------------
---
NET
SALES, OPERATING RESULT AND ORDER BOOK BY QUARTER
----------------------------------------------------------------------------
----
|
Net sales | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/
|
| | 2009 | 2008 | 2008 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 11.1 | 23.7 | 20.0 | 23.2 | 22.9
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 22.2 | 38.8 | 37.2 | 44.0 | 32.9
|
-----------------------------------------------------------------------------
---
|
Software Solutions | 6.0 | 6.6 | 7.8 | 6.4 | 7.3
|
-----------------------------------------------------------------------------
---
|
Parent company and | 0.0 | -0.2 | 0.8 | -1.0 | 0.0
|
| eliminations | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 39.2 | 68.9 | 65.8 | 72.6 | 63.1
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Operating profit / loss | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/
|
| excluding non-recurring | 2009 | 2008 | 2008 | 2008 |
2008 |
| items | | | | |
|
-----------------------------------------------------------------------------
---
|
Pre-processing | -4.4 | -1.1 | -1.6 | -0.7 | 0.6
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -39.4% | -4.8% | -8.4% | -3.1% | 2.5%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | -2.6 | 2.5 | 3.3 | 5.3 | 1.9
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -11.7% | 6.4% | 8.9% | 12.0% | 5.7%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
|
Software Solutions | -0.4 | 0.1 | 1.4 | 1.2 | 1.0
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -6.0% | 1.8% | 18.1% | 19.3% | 13.2%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
|
Parent company and | -1.6 | -1.8 | -2.0 | -2.0 | -1.8
|
| eliminations | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | -9.0 | -0.3 | 1.1 | 3.8 | 1.6
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -22.9% | -0.4% | 1.6% | 5.2% | 2.6%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Operating profit / loss | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/
|
| | 2009 | 2008 | 2008 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Pre-processing | -4.4 | -6.6 | -1.6 | -0.7 | 0.6
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -39.4% | -27.7% | -8.4% | -3.1% | 2.5%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | -2.6 | -3.8 | 3.3 | 5.3 | 1.9
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -11.7% | -9.8% | 8.9% | 12.0% | 5.7%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
|
Software Solutions | -0.4 | -0.4 | 1.4 | 1.2 | 1.0
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -6.0% | -6.5% | 18.1% | 19.3% | 13.2%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
|
Parent company and | -1.6 | -1.8 | -2.0 | -2.0 | -1.8
|
| eliminations | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | -9.0 | -12.6 | 1.0 | 3.8 | 1.6
|
-----------------------------------------------------------------------------
---
|
Operating profit / | -22.9% | -18.3% | 1.6% | 5.2% | 2.6%
|
| loss, % | | | | |
|
-----------------------------------------------------------------------------
---
-----------------------------------------------------------------------
---------
|
Order book | 31.3.2009 | 31.12.200 | 30.9.2008 | 30.6.2008 | 31.3.2008
|
| | | 8 | | |
|
-----------------------------------------------------------------------------
---
|
Pre-processing | 13.5 | 13.0 | 19.1 | 21.9 | 21.0
|
-----------------------------------------------------------------------------
---
|
Heat Treatment | 28.7 | 46.0 | 60.8 | 72.4 | 66.4
|
-----------------------------------------------------------------------------
---
|
Software | 3.7 | 3.5 | 4.5 | 6.0 | 9.5
|
| Solutions | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 45.9 | 62.5 | 84.4 | 100.3 | 96.9
|
-----------------------------------------------------------------------------
---
CONTINGENT
LIABILITIES
----------------------------------------------------------------------------
----
|
EUR million | 31.3.2009 | 31.3.2008 | 31.12.2008
|
-----------------------------------------------------------------------------
---
|
Mortgages | | |
|
-----------------------------------------------------------------------------
---
|
On own behalf | 0.2 | 0.2 | 0.2
|
-----------------------------------------------------------------------------
---
|
Guarantees | | |
|
-----------------------------------------------------------------------------
---
|
On own behalf | 0.4 | 1.4 | 0.8
|
-----------------------------------------------------------------------------
---
|
On behalf of others | 0.1 | 0.3 | 0.1
|
-----------------------------------------------------------------------------
---
|
Lease obligations | 18.2 | 17.5 | 19.3
|
-----------------------------------------------------------------------------
---
|
Repurchase obligations | 0.4 | 2.7 | 0.5
|
-----------------------------------------------------------------------------
---
|
Other obligation on own behalf | 0.2 | 0.3 | 0.3
|
-----------------------------------------------------------------------------
---
|
Capital commitments in relation to | 1.0 | - | -
|
| interests in joint ventures | | |
|
-----------------------------------------------------------------------------
---
A
customer of the US subsidiary Glaston USA, Inc. had made a claim of
approximately USD 22 million due to a sale of a machine in 2004. The
arbitration
proceeding initiated by the customer against the US subsidiary
Glaston USA, Inc.
has been concluded in April. Majority of the customer's
claim were denied. The
matter has no effect on Glaston's 2009 result, but
the compensation to be paid
by Glaston will affect Glaston's cash flow.
The Group recognized a tax refund of
approximately EUR 2 million in 2006 after
having received an affirmative
decision according to which the expenses arising
from the management
incentive scheme of the Group are deductible in taxation.
The tax
authorities of the Tax Office for Major Corporations appealed against
the
decision to the Administrative Court of Helsinki. Administrative Court of
Helsinki decided the case on Glaston's favour in January 2009. The decision
was
subject to appeal until late March 2009.
Glaston Group has international operations and can be a defendant or
plaintiff
in a number of legal proceedings incidental to those operations.
The Group does
not expect the outcome of any unmentioned legal proceedings
currently pending,
either individually or in the aggregate, to have material
adverse effect upon
the Group's consolidated financial position or results
of operations.
DERIVATIVE INSTRUMENTS
----------------------------------------------------------------------------
----
|
EUR million | 31.3.2009 | | 31.3.2008 | | 31.12.2008 |
|
-----------------------------------------------------------------------------
---
|
| Nominal | Fair | Nominal | Fair | Nominal | Fair
|
| | value | valu | value | value | value |
value |
| | | e | | |
|
|
-----------------------------------------------------------------------------
---
|
Currency | | | | | |
|
| derivatives | | | | | |
|
-----------------------------------------------------------------------------
---
|
Currency | 5.8 | 0.0 | 13.6 | 0.6 | 6.2 | -0.1
|
| forwards | | | | | |
|
-----------------------------------------------------------------------------
---
Derivative
instruments are used only for hedging purposes. Nominal
values
of derivative instruments do not necessarily correspond with
the
actual cash flows between the counterparties and do not therefore give a
fair view of the risk position of the Group. The fair values are based on
market
valuation on the date of reporting.
RELATED PARTY TRANSACTIONS
Glaston Group's related parties include the parent,
subsidiaries, associates and
joint ventures. Related parties also include the
members of the Board of
Directors and the Group's Executive Management
Group, the CEO and their family
members.
Glaston follows the same commercial
terms in transactions with associates and
joint ventures and other related
parties as with third parties.
During the review period
Glaston's related party transactions included sales to
joint ventures. In
addition, the Group has leased premises from companies owned
by individuals
belonging to the management. The lease payments were in January -
March EUR
0.2 (0.2) million.
During the review period there were no related party transactions whose
terms
would differ from the terms in transactions with third parties.
Transactions with joint ventures and associates
In January - March 2009 or 2008 Glaston had no material
transactions with the
joint venture. Glaston did not have transactions with
the associate.
----------------------------------------------------------------------------
----
|
EUR million | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Sales to joint ventures | - | - | 0.0
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
| 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Receivables from joint ventures | | |
|
-----------------------------------------------------------------------------
---
|
Current receivables | - | - | 0.0
|
-----------------------------------------------------------------------------
---
|
Non-current loan receivables | 1.7 | - | -
|
-----------------------------------------------------------------------------
---
|
Loan receivables | 5.4 | - | -
|
-----------------------------------------------------------------------------
---
|