Glaston Corp. has released its interim report for January-September 2021. Orders received totaled $185 million, whereas net sales totaled $152 million.
According to the report, orders received saw a healthy recovery from January-September, indicating positive development for both the machines and services business throughout 2021.
Glaston expects the heat treatment and insulating glass technology markets to continue to perform well during the rest of the year. Generally, there is higher than normal level of uncertainty associated with the outlook due to increased component prices and delivery times.
Based on the high order intake since the fourth quarter of 2020, Glaston estimates that its net sales in 2021 will improve from the level reported for 2020 and comparable EBITA will increase to $12.2-14.6 million. In 2020, Group net sales totaled $198.6 million and comparable EBITA was $8.9 million.
“In the third quarter, our orders received grew by 36% to EUR 45.4 million,” says president and CEO Anders Dahlblom. “A major part of this recovery was in our Heat Treatment business, which was very low in the comparison period and was strongly impacted by the pandemic. For the January−September period, orders received totaled EUR 158.5 million, already exceeding the full-year 2020 order intake level. The strong order intake development in the previous quarters favorably impacted net sales and profitability. Third-quarter net sales totaled EUR 46.4 million, up 29% compared to the corresponding period in the previous year.
Supply chain disruptions continued during the quarter with longer delivery times for certain components and increasing raw material prices, freight costs and logistics availability concerns. Managing the situation requires additional work on a daily basis from our teams and has had some impact on the timing of revenue, particularly for spare parts. As we do not anticipate that the challenges will disappear in the short term, mitigating the impact of supply chain-related disruptions is high on our agenda. We want to deliver on our promises to our customers and Glaston’s teams are working persistently to give rapid responses and keep to delivery times.”
In the third quarter of 2021, the global economic outlook continued to improve and stable market activity was noted in Glaston’s markets. Currently, supply chain disruptions constitute the main short-term risk for business operations. These disruptions are expected to continue in the foreseeable future, according to the report.