Glass Companies Report Ups and Downs in Financial Statements

Glaston Corp., NSG Group and Tecnoglass reported improvements in their most recent financial statements, but some areas are still lagging due to the ongoing COVID-19 pandemic.

Glaston Corp.

While Glaston Corp.’s orders received for the fourth quarter of 2020 was higher than its 2019 level, the company’s net sales remained below the 2019 number. Glaston’s fiscal year orders received and net sales were also down compared to the unaudited pro forma financial results from 2019. The unaudited pro forma financial information presented in the report is presented as if the acquisition of Bystronic glass, which occurred in April 2019, would have already been completed on January 1, 2019.

“As to Glaston’s performance in the fourth quarter 2020, the demand for heat treatment equipment in particular increased toward the end of the quarter, resulting in a higher-than-expected order intake. The insulating glass business continued to experience high demand driven by the necessity to improve the energy efficiency of buildings,” says Glaston president and CEO Anders Dahlblom. “Despite the pick-up in the final quarter, orders received for the full year ended at 17% below the level of the previous year … Net sales for the fourth quarter and for the full year decreased, mainly due to the lower order intake in the previous quarters.”

NSG Group

Like many companies in the glass industry, NSG Group still hasn’t returned to its pre-pandemic financial results. The company is also reducing its global headcount by more than 2,000 by identifying redundancies and retirement programs. The goal of the reductions and other cost-saving measures is to improve the company’s financial situation in fiscal year 2022.

Despite a decrease in the year-over-year comparisons, NSG Group’s markets recovered further during the third quarter of the year, according to the company’s financial report.

NSG Group’s architectural segment, which represents 44% of cumulative revenues, includes the manufacturing and sale of flat glass and various interior and exterior glazing products within the commercial and residential markets.

“Economic activity continues to be significantly impacted by the COVID-19 pandemic, although a rising number of cases toward the end of the third quarter is, in many regions, being countered by the imposition of social rather than industrial lockdowns, with a more limited impact on demand for the Group’s products. Architectural markets experienced robust activity, especially in Europe and South America,” reads the report.

Tecnoglass Inc.

Tecnoglass Inc., a manufacturer of architectural glass, windows and associated aluminum products located in Barranquilla, Colombia, reported positive financial results for the fourth quarter of 2020 ending December 31, 2020, but saw a decrease in full year revenues.

U.S. revenues of $87.8 million, which represented 86% of total revenues, grew 4.8% compared to $83.8 million in the prior year quarter, primarily driven by strong growth in residential activity. The contribution of U.S. revenue growth to total revenues was partly offset by lower revenue from Colombia.

Total revenues for the full year 2020 were $374.9 million compared to $430.9 million in the prior year with the decrease mainly related to one month less of invoicing in the second half of March and first half of April. This was a result of the previously communicated suspension of plant operations, as well as a slower recovery in Latam markets since the onset of the COVID-19 pandemic. Excluding the impact of unfavorable foreign currency exchange, total revenues were lower by 12.3% compared to the prior year.

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