Glaston Corp. published its Q1 2020 results. Group orders received were stable at $49.9 million and orders received by the segments grew 3 percent to $49.4 million. This was particularly driven by the insulating glass segment, say officials, where orders grew over 70 percent year-over-year. Heat treatment orders were at a good level as well. Net sales grew by 6 percent to $51.3 million. Comparable EBITA was $2.2 million, a decline from Q1 in 2019, but given prevailing circumstances, at a satisfactory level.
“Since the beginning of the year, COVID-19 coronavirus has impacted the daily lives and work of us all,” says Arto Metsänen, Glaston’s president and CEO. “In the first quarter, however, the coronavirus impact was not reflected significantly in Glaston’s orders received, which were at the level of the corresponding period of the previous year. Demand for insulating glass machines grew strongly, compensating for the weakness in demand for automotive glass machines that has already been evident for some time. Demand for heat treatment machines was nearly at the previous year’s level. Services were affected by travel restrictions and various countries’ national isolation measures, but our extensive service network and our investment in remote services has supported the development of the product area, and our ability to help our customers globally given the circumstances.”
Operations running normally
All of Glaston’s production plants are operating normally and the majority of deliveries, with a few exceptions, will be delivered as planned. The availability of components has also been secured for the coming months. No coronavirus infections have been reported in Glaston to date. Many of its employees have been working remotely for some time in order to safeguard both their own health and the health of production personnel, say company officials.
“I would like to thank all Glaston employees for their resilience, flexibility and adaptation to the rapid change in operating practices,” Metsänen says.
Measures taken for fast reaction when needed
The uncertainty in the market has increased substantially and visibility is low. To manage the situation, Glaston has created tools for increased flexibility and fast adaptation if needed. In Finland, an employee cooperation procedure has been completed in which lay-offs for all personnel flexibly has been agreed and will be implemented in phases as the situation develops. Corresponding measures have also been implemented or are planned in Germany, Switzerland, and in all other operating locations. All measures are of course adapted to the workload and customer demand. Glaston is constantly monitoring the development of the situation, its orders and order book, the company’s cash flow and liquidity, as well as the government and other aid available in different countries, say officials. The company’s liquidity situation is currently good, and through these actions the Group is preparing for the uncertain development of the coming months.
