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PCB | August 13, 2009

Aspocomp Group post weak report

PCB producer Aspocomp Group has posted a weak report during the first six months.
Net sales of EUR 6.2 million (EUR 11.3 million 1-6/2008). Operating profit before depreciation (EBITDA): EUR -0.6 million (0.9). Operating profit (EBIT): EUR -1.2 million (0.0).

"The market remained challenging. Due to decreased net sales, the Oulu plant's result turned red. In addition, about EUR 0.2 million in one-time compensation for dismissal and provision for bad debt were booked during the period.

Due to tight cost control, cash flow after investments remained positive, but cash in hand decreased about EUR 0.5 million as the company repaid EUR 1 million in bank debts.

The market is expected to remain challenging throughout the year 2009. EBITDA is likely to be negative.

The Suzhou, China plant of the joint venture Meadville Aspocomp (BVI) Holdings Ltd. reopened in March 2009 and is currently running at a low capacity utilization level. As the Chinese export market remains weak, we do not expect to achieve a significant improvement in sales, and earnings will thus fall short of break-even in 2009. The India plant project is also on hold until further notice.

Overall, Aspocomp is financially stable and the company can continue as is. However, the company can also be further developed through various structural arrangements.", said Sami Holopainen, President and CEO of the company.

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