Electronics Production |
EB lowers 1H profit guidance
EB expects a clearly negative operating profit for the first half of 2011. It is expected that the operating result during the second quarter of the year will be better than during the first quarter of the year.
EB still expects that net sales in the first half of 2011 will be lower than in the first half of 2010 (EUR 86.2 million). Earlier in the Financial Statement Bulletin on February 17, 2011, EB announced for the first half of 2011 that it expected net sales to be lower than in the first half of 2010 (EUR 86.2 million) and operating profit to be lower than in the first half of 2010 (EUR 1.8 million).
The main reason for the revised profit outlook is a lowered revenue forecast in the Wireless Business Segment due to slower than expected order book development in the new satellite communication service solutions and due to increased competition in the area of smart phones related R&D services. The revenue forecast still contains uncertainties in particular with respect to the timing of individual projects.
The profit outlook for the first half of 2011 is still based on the assumption that there will not be further bookings of impairments of EB's accounts receivables from TerreStar Networks Inc. It is possible that based on later information related to TerreStar Networks' and TerreStar Corporation's reorganizations, this outlook may need to be reconsidered.
