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Electronics Production | April 18, 2008

PKC increase sales by 21,6% in Q1

The PKC Group's net sales in the January-March period increased by 21.6% on the previous year to EUR 85.1 million (70.0 million in Jan.-Mar. 2007). Operating profit was EUR 9.3 million (6.5 million) and profit before taxes was EUR 7.3
million (6.1 million).
The commercial vehicle market grew compared to the same period a year ago. Deliveries by the Wiring Harnesses business to the commercial vehicle industry in Europe and South America were at a high level. The deliveries of wiring
harnesses for other vehicles enjoyed a favourable trend. Sales of wiring harnesses and cabling to the telecommunications and electronics industry have grown considerably compared to the previous year.

Electronics contract design and manufacturing continued to exhibit strong growth during the report period. Investments made by telecommunications customers led to an increase in the volume of design services, and demand from the industrial electronics sector also remained robust. Competition for new supply contracts and customer relationships remains intense, requiring the adoption of cost-efficient operating models and the ability to rapidly respond to customers' global needs.

Net sales generated in the report period by the Wiring Harnesses business amounted to EUR 69.3 million (58.1 million), or 19.3% more than in the comparative period. The segment's share of consolidated net sales was 81.5% (83.0%). It generated an operating profit of EUR 7.0 million (4.9 million), equivalent to 10.1% of the segment's net sales (8.5%).

Net sales generated by the Electronics business grew 33.1% to EUR 15.8 million (11.8 million). The segment's share of consolidated net sales was 18.5% (16.9%). It generated an operating profit of EUR 2.3 million (1.5 million), equivalent to
14.7% of the segment's net sales (12.8%).

The Group's net sales grew in both business segments thanks to strong demand from customer sectors. Operational profitability was at a good level both in the Harnesses and the Electronics business. Business operations in North America were successfully brought to a profitable level during the period, but the result of North American operations is burdened by provisions made for their restructuring, which will be completed during the second and third quarters of this year.
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November 11 2018 12:47 pm V11.8.0-2