Glaston Corporation's interim report from January–September 2020 has pointed at some positive development in insulating glass technologies, while heat treatment technologies and services were slower than expected.
Acting President and CEO Sasu Koivumaki said: “Glaston’s third quarter development was multifaceted.
“The Insulating Glass (IG) business performed well with a faster than expected recovery in Europe, and several larger projects were picked up after the slow development in the previous quarter.
“Insulating Glass equipment and services order intake grew by 3% from the corresponding period last year, which gives the IG business a very good start to 2021.
“On the other hand, the market for Heat Treatment (HT) equipment and services remained very challenging
“In the commercial building market, which is the main market for HT, forecasts are weak whereas the residential building market, important for IG, continues to grow.
“Consequently, we see a clear need to adapt our Heat Treatment business to current market demand. The Automotive business remains challenging due to overcapacity in the market.
“As a result of the low order intake in the previous quarters and the postponement of a number of orders, our net sales decreased in all segments.
Third-quarter Group net sales for the group totalled €35.9 million. Due to the current crisis, the Emerging Technologies (ET) market continued to be slow in the third quarter.
Glaston estimates that comparable EBITA for 2020 will decline from the 2019 level.
The company’s current assessment is that fourth-quarter orders will improve from the third quarter but remain below the previous year’s levels.
The lower than 2019 order intake and lower than normal volume in services business impacts the development of net sales and earnings in 2020.
The uncertainty surrounding the assessment remains, and the situation might change quickly depending on the development of the COVID-19 pandemic and the general economic climate.