PCB | March 14, 2008
Aspocomp’s net sales decline by 13% in 2007
Aspocomp’s financial report states a net sales decline of 13% to €42.4 million in 2007 (PY: € 48.6 million). The operating profit was € -15.8 million (PY: € -6.7 million).
Reason was the re-structuring process and the lower net sales of Aspocomp Thailand and the compensation of € 10.1 million to the former employees of Aspocomp S.A.S. Aspocomp’s decision to shut down production at the Group’s Salo plant was to achieve annual savings in excess of € 10 million. Aspocomp also signed an agreement to transfer its shareholdings in its subsidiaries in China and India as well as certain equipment from its Salo plant to a new holding company, Aspocomp Asia. 80% of the shares were sold to Hong Kong based Meadville Holdings, while Aspocomp remains a minority owner with 20%. As part of the agreement, Meadville acquired a 10% stake in Aspocomp Oulu Oy. Additionally, € 1.6 million worth of equipment from the Salo plant was sold to Meadville under a separate agreement. Aspocomp Group Aspocomp Oy, Aspocomp Oulu Oy and Aspocomp Holdings entered into an agreement on debt restructuring with their Finnish bank creditors, effective on 14.12.2007. The Group's net sales per plant were as follows: Aspocomp Oulu, 53% (50), Aspocomp Thailand, 47% (50). The Group's net sales by market area were as follows: Europe, 79% (68), Asia, 12% (15), the Americas, 9% (17) The Group's net sales per product area were as follows: telecom, 51% (43), automotive, industrial % consumer electronics, 49% (57) Aspocomp Oulu's five largest customers – Elcoteq, Incap, Nokia Siemens Networks, Scanfil and Wabco – accounted for 69% of its net sales in 2007. For Aspocomp Thailand - Continental Automotive Systems, Honeywell, Leopold Kostal, Nokia Siemens Networks and Wabco – a 87% was stated in the report. The Aspocomp Group had an average of 1,445 employees (PY: 2,021). Of them, 821 (1,479) were non-salaried and 299 (452) salaried employees. Figures by regions are as follows: Europe 457 (704), Thailand 988 (1317). 21 former employees of Aspocomp S.A.S., who were not involved in the previous litigation in France, have raised claims against Aspocomp Group Oyj in a French court. The total amount of the claims is € 750,000. The claims will be heard in winter and spring 2008. Aspocomp's main priority in 2008 is the further restructuring of the Group. It will also finalise the Meadville Holdings transaction. The report states that further actions are needed to secure liquidity. The estimated turnover for the Aspocomp group in 2008 is at €40 million. The EBITDA also be positive, due to leaner cost structure and more efficient operations.