Glaston Reports Strong Overall Demand Despite Challenging Environment

Glaston Corp. announced in its 2022 half-year financial report that overall demand remains strong thanks to a solid order backlog along with a healthy order intake during the first half of 2022.

The company, a Finland-based entity engaged in the glass technology sector through machines and services, states that it estimates net sales will increase throughout 2022 from the levels reported for 2021. In 2021, group net sales totaled $186 million, and comparable earnings before interest, taxes, depreciation and amortization (EBITA) was $11.3 million.

This comes as economic uncertainty remains thanks to global economic activity and customer investments. According to Glaston, the uncertainty is driven by supply chain disruptions, COVID and the Russian attack on Ukraine, which has impacted energy and raw material prices.

“Despite increasing overall global economic uncertainty, most of Glaston’s markets continued to perform well in the second quarter,” says Anders Dahlblom, Glaston president and CEO. “The quarterly order intake was EUR 56.2 million, somewhat above our quarterly average. Net sales were up by 24% to EUR 53.5 million, primarily due to the good order intake in the previous quarters. Comparable EBITA improved and was EUR 3.5 million, corresponding to an EBITA margin of 6.6%, mainly due to good volume development and operational execution securing strong net sales growth.”

Dahlblom reports that the service sector remains strong with more than 20% sales growth. This is a result of customers maintaining operations and ramping up production. As a result, there was strong growth in daily services with the U.S. leading the way thanks to order intake for upgrades, which was at record levels.

Additionally, Dahlblom states that Glaston will proceed with its strategic focus to grow its business in China. In fact, the first products produced in China for the Chinese market are expected to be delivered during the first half of 2023.

Glaston announced that all operations in Russia have been discontinued and all employment contracts, six in total, have been terminated. Two upgrade projects were halted and removed from the order backlog. New orders have not been taken from Russia since February.

Dahlblom adds that Glaston has improved actions on safety and has taken action to reach sustainability targets, specifically to reduce CO2 emissions.

“Of Glaston’s green­house gas emissions, over 80% occur in Finland, Germany and China,” says Dahlblom. “Our production units in Finland and Germany started using renewable electricity in the early part of the year, thereby substantially reducing their CO2 emissions. In addition, we made investment decisions to improve the energy efficiency at our production unit in Switzerland, where renewable energy is already used.”

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