MACHINERY
Positive Outlook for 2017
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A HIGHER ORDER BOOK THAN THE previous year , positive market development and the cost-saving measures undertaken create good conditions for the development of Glaston ’ s operations in 2017 .
President and CEO Arto Metsänen explains : “ In the fourth quarter , the glass processing machine market picked up and , advancing cautiously , the year ended strongly . The best development was seen in the EMEA region , where new machine orders grew by 53 % compared with the previous quarter .
Due to a large number of machine deliveries , October – December net sales grew by 8 % from the previous year and totalled EUR 35.1 million . The comparable operating profit improved to EUR 2.7 ( 0.6 ) million , i . e . 7.8 % of net sales . Earnings development was particularly influenced by increased net sales and cost-saving measures .
Full-year net sales totalled EUR 107.1 million and the comparable operating result was EUR 2.8 ( 6.1 ) million . Lower net sales than the previous year and cost overruns associated with customer projects reduced earnings . Cost-saving measures implemented during the year had a positive effect on earnings .
In spring we renewed our strategy . Our core expertise is flat tempering technology . In addition to our core business , we also see growth in other safety glass categories , such as bending , tempering-bending and laminating .
We are also actively seeking new business opportunities in emerging glass technologies . In January 2017 , we established the Glaston Emerging Technologies unit , which offers consulting and planning services for smart glass and energy glass windows production as well as solar energy applications . The intention is also for the unit to act as a supplier of the said production lines in future . The nanotechnology project in which we have been participating since late 2015 is proceeding on schedule . Progress of the project as planned would bring to Glaston equipment orders in the next few years .
OPERATING ENVIRONMENT
As we entered 2016 , broad uncertainty was evident in the glass processing market . A significant change for the better was seen only in the last quarter of the year , when a pick-up was perceptible , particularly in the EMEA area . In the North American market , customers ’ decision-making slowed in the latter part of the year in both the USA and Mexico . The market situation remained reasonably good , however . In South America , the market continued to be quiet . In the Asian market area , development varied from country to country . The market in China is still on a downward trend , but in many other countries development has been positive .
MACHINES October – December In the final quarter of the year , a clear pickup took place in the Machines business market environment . The most positive development was in the EMEA area , where the number of new orders grew by 53 % compared with the previous quarter . In North America , demand for customers ’ products is good , but customers ’ decision-making remains slow . In South America , the Brazilian market continued to be quiet , while in Chile , Peru and Colombia , the first signs of positive development were perceptible . In Asia , the market environment varied significantly from area to area . In Australia and New Zealand , good development continued . The Chinese market remained challenging , but emerging demand for more technologically advanced machines is evident .
In the final quarter of the year , Glaston strengthened its market position due to its new FC™ and RC™ flat tempering lines . The FC™ product series , launched at the Glasstec Fair in September , quickly achieved a solid market position . In the latter part of the year , the first deals for the new products were sealed . January – December North America and the EMEA area remained the largest markets for Glaston ’ s Machines business . A change took place in the North American market in the second half of the year , when customers ’ decisionmaking times lengthened . Competition intensified as Chinese operators strengthened their presence in the market . The South American market continued to be quiet , but outside Brazil a slight pick-up was seen towards the end of the year . In the EMEA area , particularly in Eastern Europe and in Italy , the market developed positively . In some countries , customers ’ investments were boosted by tax breaks on investments .
In the Asian market , Glaston ’ s success varied from area to area . Due to its competitive product offering and increased presence , Glaston achieved a leading position in the Australian and New Zealand tempering machine markets following a number of quieter years . Overall , the Southeast Asia machine market was quiet , with the exception of Vietnam . In China , customers ’ activity increased in the second part of the year .
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