MACHINERY
Positive Outlook for 2017
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A HIGHER ORDER BOOK THAN THE previous year, positive market development and the cost-saving measures undertaken create good conditions for the development of Glaston’ s operations in 2017.
President and CEO Arto Metsänen explains:“ In the fourth quarter, the glass processing machine market picked up and, advancing cautiously, the year ended strongly. The best development was seen in the EMEA region, where new machine orders grew by 53 % compared with the previous quarter.
Due to a large number of machine deliveries, October – December net sales grew by 8 % from the previous year and totalled EUR 35.1 million. The comparable operating profit improved to EUR 2.7( 0.6) million, i. e. 7.8 % of net sales. Earnings development was particularly influenced by increased net sales and cost-saving measures.
Full-year net sales totalled EUR 107.1 million and the comparable operating result was EUR 2.8( 6.1) million. Lower net sales than the previous year and cost overruns associated with customer projects reduced earnings. Cost-saving measures implemented during the year had a positive effect on earnings.
In spring we renewed our strategy. Our core expertise is flat tempering technology. In addition to our core business, we also see growth in other safety glass categories, such as bending, tempering-bending and laminating.
We are also actively seeking new business opportunities in emerging glass technologies. In January 2017, we established the Glaston Emerging Technologies unit, which offers consulting and planning services for smart glass and energy glass windows production as well as solar energy applications. The intention is also for the unit to act as a supplier of the said production lines in future. The nanotechnology project in which we have been participating since late 2015 is proceeding on schedule. Progress of the project as planned would bring to Glaston equipment orders in the next few years.
OPERATING ENVIRONMENT
As we entered 2016, broad uncertainty was evident in the glass processing market. A significant change for the better was seen only in the last quarter of the year, when a pick-up was perceptible, particularly in the EMEA area. In the North American market, customers’ decision-making slowed in the latter part of the year in both the USA and Mexico. The market situation remained reasonably good, however. In South America, the market continued to be quiet. In the Asian market area, development varied from country to country. The market in China is still on a downward trend, but in many other countries development has been positive.
MACHINES October – December In the final quarter of the year, a clear pickup took place in the Machines business market environment. The most positive development was in the EMEA area, where the number of new orders grew by 53 % compared with the previous quarter. In North America, demand for customers’ products is good, but customers’ decision-making remains slow. In South America, the Brazilian market continued to be quiet, while in Chile, Peru and Colombia, the first signs of positive development were perceptible. In Asia, the market environment varied significantly from area to area. In Australia and New Zealand, good development continued. The Chinese market remained challenging, but emerging demand for more technologically advanced machines is evident.
In the final quarter of the year, Glaston strengthened its market position due to its new FC™ and RC™ flat tempering lines. The FC™ product series, launched at the Glasstec Fair in September, quickly achieved a solid market position. In the latter part of the year, the first deals for the new products were sealed. January – December North America and the EMEA area remained the largest markets for Glaston’ s Machines business. A change took place in the North American market in the second half of the year, when customers’ decisionmaking times lengthened. Competition intensified as Chinese operators strengthened their presence in the market. The South American market continued to be quiet, but outside Brazil a slight pick-up was seen towards the end of the year. In the EMEA area, particularly in Eastern Europe and in Italy, the market developed positively. In some countries, customers’ investments were boosted by tax breaks on investments.
In the Asian market, Glaston’ s success varied from area to area. Due to its competitive product offering and increased presence, Glaston achieved a leading position in the Australian and New Zealand tempering machine markets following a number of quieter years. Overall, the Southeast Asia machine market was quiet, with the exception of Vietnam. In China, customers’ activity increased in the second part of the year.
112 » APR 2017 » CLEARVIEW-UK. COM