Results from Glaston:
The headline of @Aapeli_Pursimo’s comment summarizes the essentials: a subdued market.
I’ll be doing the CEO interview today as an exception!
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Here’s the interview.
00:00 Start of the year
01:45 Guidance
02:28 Market situation
05:20 Construction demand
06:55 Ketchup bottle effect
08:23 Growth investments
09:43 Competitors
11:02 Situation in the Middle East
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Here’s a company report from Aapeli after Glaston’s Q1 results 
Glaston’s Q1 results exceeded our expectations, supported by relative profitability, while the company’s order intake fell short of our forecasts. The company expects the market situation to remain subdued and reiterated its guidance for a declining revenue and profit for the current year. Due to the realized development and market situation, we slightly lowered our growth forecasts for the coming years, but these were partly offset by our increased margin forecasts. We see upside leverage in the stock as the market situation improves, but currently, the risks of a continued subdued demand situation outweigh this. Thus, we reiterate our reduce recommendation, but lower our target price to 1.20 euros (previously 1.25 €) due to a slight decrease in earnings forecasts for the coming years.
Interesting announcement. The company is selling off its Swiss factory. Hopefully, the profit will be used wisely.
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Sold for 10 million and 7.8 million recorded as capital gains.
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Four (4–6) major owners are hindering GLASTON’S product development.
• In 2019, under CEO Arto Metsänen, heat treatment machine revenue was € 82.6 million
• In 2020, under CEO Sasu Koivumäki, heat treatment machine revenue was € 61.6 million
When Anders Dahlbom started as CEO at GLASTON on Jan 1, 2021, I informed him in January that I had made an invention for tempering machines. This was the first one. Lasihelmi still has 2 patent applications for machines reaching even higher capacities.
• This was immediately reflected in orders received: 2020 € 56 million, a year later 2021 € 89 million
• Year 2021, revenue from heat treatment machines € 74.7 million
• Year 2022, revenue from heat treatment machines € 85.0 million
In 2023, revenue from insulating glass machines was € 90 million. One can imagine that the revenue for heat treatment machines would have been at least the € 85 million. Perhaps 10% more. Their COMBINED revenue fell by 21.5%.
A section had been removed from Dahlblom’s last interview, the Q3/2023 interview. It can be viewed at https://www.youtube.com/watch?v=vS_5by6569Y It lasts over a minute.
The next CEO, Toni Laaksonen, resigned in less than six months. Perhaps he resigned because Finland only has a chance of success with the best products?
Here is a company report from Aapeli following the sale of the Swiss real estate
Glaston announced on May Day Eve that it is selling its Swiss factory property, generating a significant cash flow return and a non-recurring gain on sale. We view the transaction as very positive, as it releases capital from the company’s balance sheet and is substantial given the company’s size. We estimate that the company will return to paying dividends next spring, though the transaction has no impact on our operational forecasts. With a strengthening financial position and our anticipated dividend distribution, we see the stock’s risk-adjusted expected return having risen to a sufficient level again when reflected against its long-term potential. Therefore, we upgrade our recommendation to Accumulate (prev. Reduce) and our target price to EUR 1.3 (prev. EUR 1.2).
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