Glaston Corp.’s net sales were down in the first quarter of 2019 compared to the same period last year. According to the company’s interim report for January to March 2019, its net sales were $23.2 million* (EUR 20.8 million) compared to $27.7 million (EUR 24.8) in the first quarter of 2018.
Glaston’s orders received were $25.5 million (EUR 22.9 million) for the first quarter of this year compared to $29.6 million (EUR 26.5 million) for the same period last year.
“As we anticipated in our financial statement 2018 bulletin, first-quarter net sales and comparable operating results were low,” says CEO Arto Metsänen. “This was primarily due to the low number of new orders in the third quarter and early fourth quarter of last year, but also to, among other things, the protracted Brexit negotiations and other uncertainties reflected in Europe as a whole, which led to a slightly quieter than expected first quarter.”
On January 25, 2019, Glaston signed an agreement to acquire Bystronic glass for an enterprise value of $75.9 million (EUR 68 million). Bystronic glass’ net sales totaled $128.8 million (EUR 115.5 million) and the comparable operating result margin was 5.7%. The acquisition was completed on April 1, 2019.
Bystronic glass was consolidated as part of Glaston Corp. from April 1, 2019 and, consequently, Glaston will have two reporting segments: Glaston and Bystronic glass.
“The first quarter of 2019 has been historic for Glaston thanks to the acquisition of Bystronic glass. The acquisition complements our offering significantly and we will be able to offer products to our architectural and automotive industry customers on a comprehensive basis,” says Metsänen. “We are shifting into a completely new size class, which will bring us economies of scale and opportunities to develop our operations for our customers’ benefit. Customers have responded very well to the acquisition and are looking forward to new, broader practical cooperation opportunities.”
*Editor’s Note: The financial results were converted from Euros to U.S. dollars on April 29, 2019.