Volume 47, Issue 3 - March 2012

GlobalUpdate

Glaston Sales Down; North American Demand for Machines ‘Weak’

Glaston of Finland has reported a 4.9 percent drop in 2011 net sales compared to the previous year, according to the company’s 2011 financial report. Consolidated net sales totaled $189.7 million (142.7 million EUR), down from $198.6 million in 2010.

\Company officials have attributed the loss to market conditions.

“ In 2011 Glaston’s operating environment and market situation remained challenging,” says Arto Metsänen, president and CEO. “At the beginning of the year there were signs of growth, but in the second half the problems of the world economy were reflected in our customers’ willingness to invest and led to the postponement of larger investment decisions.”

The cautiously positive development of the glass fabricating market in the early part of 2011 slowed in the second half of the year, according to the report. In North America, demand for machines remained weak, the report says.

The South American market held its own throughout the year. In Western Europe, demand remained weak, while in Eastern Europe the glass processing machine market picked up at the end of the year. In Asia, the leveling off of the market that began in the second quarter continued in the second half of the year.

Orders received in the machines segment totaled $118.6 million in 2011, according to the report. In January-December 2011, machine net sales totaled $119.6 million, down from $126.3 million in 2010.

The restructuring of the machines segment was completed in July when the previously separate pre-processing and heat treatment factories in Brazil were combined into a single manufacturing facility.

Compared with the previous year, the services segment grew in Asia, South America and North America. Orders received in the services segment totaled $41.6 million in 2011. In January-December 2011, net sales totaled $41.3 million, compared to $42.5 million in 2010. During the year, no significant changes took place in the segment’s worldwide maintenance service network and number of service locations.

The software solutions segment’s most significant market areas in 2011 were Central, Western and Northern Europe, North America and Japan, according to the report. Orders received in the software solutions segment totaled $27.8 million in 2011. In January-December, the net sales of that segment totaled $31 million, compared to $32 million in 2010.

Glaston officials expect that 2012 net sales will be at least at the 2011 level and that the operating result will be positive. Growth in the Asia market is expected to level off. In North America and the EMEA (Europe, the Middles East and Africa) area, the market will also continue to be challenging. The positive development of the South American market is expected to continue.
www.glaston.net


PPG Completes Acquisition of Dyrup
PPG Industries of Pittsburgh has completed the purchase of European coatings company Dyrup A/S, based in Copenhagen, Denmark, from its owner, Monberg & Thorsen (M&T), according to the company. The final transaction value, including assumed debt, was $150 million USD (115 million EUR), subject to customary post-closing adjustments. M&T is a public holding company

“We are pleased to begin the processes of integrating Dyrup and its many highly skilled employees into our European business and of securing the future for Dyrup’s brands and customers,” says J. Rich Alexander, PPG executive vice president who leads all of the company’s architectural coatings businesses. “The acquisition of Dyrup will help grow PPG’s presence in several key European countries where PPG today has little or no architectural coatings presence, as well as broaden our product offerings.”

Dyrup, a European producer of architectural coatings and specialty products, had 2010 sales of approximately $270 million USD. It employs 950 people and operates six manufacturing facilities in Europe. Dyrup’s brands include Bondex, Gori and Xylophene, and its products are sold primarily in Denmark, France, Germany, Portugal, Poland and Spain through professional and do-it-yourself channels.
www.ppg.com


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