Glaston Corp. has seen growth in net sales and improved profitability through the first three quarters of 2015, according to the company’s interim report.

In the third quarter, from July-September, the company received $31.2 million* (EUR 28.2 million) in orders, with net sales totaling $37.9 million (EUR 34.3 million). From January-September, Glaston took in $91.9 million (EUR 83.2 million) worth of orders and recorded $100.3 million (EUR 90.8 million) in net sales.

“The third quarter was good in terms of net sales growth,” says president and CEO Arto Metsanen. “Compared with the corresponding period of the previous year, net sales grew by 57 percent to EUR 34.3 million ($37.9 million).”

The company’s machines and services businesses both increased their net sales, with growth coming mainly in North America, where net sales increased by 60 percent compared with July-September 2014, and in the Europe, Middle East and Africa region, where net sales grew by 25 percent.

“The Asian market, too, showed signs of recovery,” says Metsanen. “Our profitability improved, and the comparable operating profit, excluding non-recurring items, was EUR 2.5 million ($2.8 million). Profitability was improved by increased net sales, although fixed costs relating to the pre-processing business will adversely affect the year-end result. In respect of these, corrective measures are under way.”

In the second quarter, Glaston sold 100 percent of the shares of Glaston Italy S.p.A., which specialized in pre-processing operations. As a result, the company reassessed its reporting segments and, as of July 1, combined the operating segments into a single reporting segment. As of the second quarter of 2015, the pre-processing machines business has been classified in Discontinued Operations.

Looking ahead, Glaston “expects that Continuing Operations’ 2015 net sales and comparable operating profit, excluding non-recurring items, will exceed the level of 2014.”

Glaston also announced it will streamline operations in Asia and South America. According to a release, the company has begun “adjusting its capacity to its new structure and the current market situation.”
Pre-processing machine assembly has stopped at its Tianjin factory in China, and in South America, production capacity has been adjusted.
“These measures are expected to yield EUR 1.3 million ($1.44 million) in annual cost savings,” the release reads. “The profitability improvement measures will affect some 45 people in total in Asia and South America. They will be implemented by the end of 2015 and the savings will take effect from the beginning of 2016 onwards.”

*U.S. dollar figures were converted from the reported EUR figures at the date of publication.