Glaston’s Q4 financial statement reported low overall demand and investment in tempering and laminating equipment hampered the company.

Glaston Corp. released its fourth quarter (Q4) 2023 financial statements for its two business units, Architecture and Mobility, Display and Solar. Though interim CEO Antti Kaunonen said Glaston experienced a steady 2023 despite market uncertainty and increased geopolitical tensions, its Architectural segment declined in Q4 due to slowdowns in the commercial and residential markets. Q4 ran from October to December 2023.

Glaston’s Q4 financial statement reported low overall demand and investment in tempering and laminating equipment hampered the company. However, energy efficiency and automation demand drove interest in flat tempering and laminating lines.

“During the year, the glass processing equipment markets developed unevenly,” said Kaunonen. “We saw good development in the Mobility market, particularly in China, whereas the Architectural market slowed down, reflecting the lower construction activity in several regions. The Q4 order intake was up 11% and totaled $62 million due to the good order intake development in the Mobility, Display and Solar segment. The full-year order intake was down 13%, reflecting the Architectural market’s slowdown.”

Regional Data

Regionally, increased financing costs and high inflation contributed to a Q4 slowdown in European demand for glass machinery. Glaston’s bottom line was also impacted by the lack of machinery usage in Europe. The same cannot be said for the Americas. Glaston officials report that the region was the most active, especially the commercial segment.

In the U.S., an increase in investments was led by new energy regulations. U.S. customers also expressed deepened interest in insulating glass technologies.

Glaston’s Architectural Q4 net sales totaled $45.6 million. Of the company’s total net sales, the Architectural sector accounted for 77%. Geographically, Europe accounted for 51%, the Americas accounted for 29%, and Asia and the Pacific accounted for around 20% of the company’s total Q4 net sales.

2024 Outlook

Officials expect Glaston’s Architectural segment to recover slowly in 2024. In Europe, demand is likely to remain incremental, with a recovery occurring toward the end of the year. In the Americas, the current demand level is expected to continue. In China, interest in the Architectural market is expected to remain reasonable.

“We started the new year 2024 by revisiting our strategy,” said Kaunonen. “Due to the significant changes in the global economy and Glaston’s addressable markets starting to soften in 2023, we have adjusted the timeframe for achieving our strategic targets from 2025 to reach them in the medium term (three to five years) … We expect annual average net sales to exceed the addressable equipment market growth and the comparable return on capital employed to be above 16%.”

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