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Electronics Production |
Partnertech restructures Metal Precision Technology division
EMS-provider Partnertech sees continued positive development for electronics, but initiated adaptation in Metal Precision has reduced operating profit.
Leif Thorwaldsson, President and CEO, comments:
During the quarter orders from our larger defense customers have continued to decrease. We have therefore initiated a major restructuring program in order to increase profitability in the Metal Precision Technology division.
The electronics division shows continued good growth but group sales decreased by 6% in the quarter compared to the same period of 2013. Operating profit was SEK -31 million in the quarter, including non-recurring restructuring costs mainly related to the Metal Precision Technology division. With the measures taken, costs are reduced in order to achieve profitability with lower volumes. At the same time we are continuing to focus on non-defense segments such as Oil&Gas where there is great interest in our offering. Although there is great potential for us in this market we are not yet able to compensate for the loss of volumes from defense customers.
Our electronics business continues to develop well and during the quarter we have signed contracts with new customers while volumes from existing customers have grown.
Despite a weak demand within systems integration during the year, we have seen an increase in assignments from customers in the MedTech field. This, together with the restructuring in the Metal Precision division gives us the possibility to improve profitability in the second half of the year.
Second quarter of 2014
- Net sales were SEK 540 million (574)
- Operating profit totaled SEK -9 million (3) including restructuring costs SEK -31 million
- Restructuring costs amounted to SEK 22 million
- Profit/Loss after tax was SEK -28 million (-4)
- Earnings per share after tax amounted to SEK -2.20 (-0.28)
- Cash flow after investments amounted to SEK -28 million (27)
- Net sales were SEK 1,087 million (1,128)
- Operating profit totaled SEK -8 million (11) including restructuring costs SEK -30 million
- Restructuring costs amounted to SEK 22 million
- Profit after tax was SEK -30 million (-2)
- Earnings per share after tax amounted to SEK -2.37 (-0.13)
- Cash flow after investments amounted to SEK -43 million (-24)
- The equity/assets ratio was 37% (37) on June 30
