Half Year 2024 Glaston Oyj Abp Earnings Call Transcript
Key Points
- Glaston Oyj (OHEL:GLA1V) maintained its EBITA margin at 6.6% despite a 10% decline in net sales, showcasing strong cost management.
- The services segment experienced growth across all regions, contributing positively to the company's profitability.
- Order intake improved from the first quarter, reaching over EUR 50 million, indicating a potential recovery in demand.
- The company successfully increased its services share in the Architecture segment to 37%, up from 30% in the previous year.
- Glaston Oyj (OHEL:GLA1V) plans to transfer preprocessing production from Switzerland to China, which is expected to improve future profitability.
- The overall market environment remains challenging, with a 6% decline in order intake compared to the previous year.
- Net sales decreased by 10%, primarily due to declines in the Architectural Technologies segment.
- The company faces significant competition in the heat treatment segment, particularly from Asian markets.
- Cash flow was negative in the second quarter, driven by lower advance payments and changes in order intake.
- There are expected one-off costs related to the production transfer from Switzerland to China, impacting financials in the short term.
Welcome to Glaston Corporation's first half and quarter two 2024 results webcast. Today, we are going to discuss how profitability was supported by the service business, yet markets are still challenging. My name is Pia Posio, and I lead our Communication, Marketing and Investor Relations team here at Glaston.
And together with me, I have Antti Kaunonen, our Interim CEO; and Päivi Lindqvist, our CFO, who will be covering the presentation where we discuss the quarter two highlights, market review, financial development and also revisit the outlook for this year. And after we are done with the official presentation, it is our pleasure to introduce our new CEO, Toni Laaksonen to you.
He will be starting next Monday, and we took the opportunity to welcome him and present to you today. But with this, Antti, floor is yours still for this quarter. And while we listen you are welcome to share your questions, and we have time reserved for those in the end. Antti, please.
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