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Electronics Production | March 31, 2009

PKC now estimates full-year operating profit to be negative

Development in the commercial vehicle industry in the beginning of the year has been weaker than predicted and the company doesn't believe that the markets would improve to such an extent that the full-year operating profit would be positive.
Therefore, PKC Group Oyj changes its previously published forecast and stimates the full-year operating profit to be negative. Otherwise the company maintains its previous forecast. The previous outlook for the future, disclosed in the financial statements bulletin, was in its entirety as follows:

”At present, it is difficult to estimate how long the current economic downturn will continue. However, we foresee the weak predictability of commercial vehicle demand and uncertainty concerning financing in general, coupled with the emptying of the stocks of vehicle manufacturers, keeping demand for wiring harnesses exceptionally low.

We also estimate that demand for electronics design and manufacturing services in the market will weaken compared with last year. In Asia, investments made in the infrastructure of mobile phone networks may have a positive effect on demand for PKC's products.

We predict that the operating profit continues to be negative for the first half of the year, our full-year net sales will decrease substantially and operating profit to remain weak. Full year estimation contains significantly more uncertainty than usual. Thanks to low need for capital expenditures and decrease of working capital, cash flows after investments are expected to be positive.

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