Electronics Production | April 25, 2008
Scanfil post higher profit in Q1
Turnover for the first quarter of 2008 totalled EUR 50.0 million (52.2 in the corresponding period 2007). Operating profit was EUR 4.7 (3.6) million, which is 9.5 (6.8) % of turnover. Profit for the review period was EUR 3.6 (3.1) million.
"Sales are off to a satisfactory start in 2008. Maintaining profitability is a sign of effectiveness of operations and personnel and provides Scanfil with good opportunities for competing successfully in the markets also in the future. The strategic decisions made by the Annual General Meeting and the Board of Directors together with the ability to operate profitably support the further development of our operations and the enhancement of our market position," said Scanfil President Harri Takanen. The positive development in the operating environment of our industrial electronics customers has continued in the first quarter. The global environmental concerns, rising energy prices and urbanisation have a positive effect on the markets of Scanfil's industrial electronics customers. The sales and production amounts of industrial electronics products have been good during the review period. Scanfil has focused on industrial electronics to even out the distribution of sales and is actively exploring new opportunities for increasing the sales of industrial electronics products. The total demand from telecommunications customers has been lower than during the corresponding period last year. This is mainly due to product structure changes implemented by one of the customers. These changes in particular have affected the sales of the Chinese units. Telecom customers accounted for approximately 63 (70)% and industrial electronics customers for approximately 37 (30)% of the review period's turnover. The Chinese subsidiaries' sales accounted for 32% of the Group's sales during the review period (34% in the corresponding period in 2007) including deliveries to the Group's other plants. Of the Group's personnel, 53 (49)% worked in China at the end of 2007, and a total of 74 (71)% worked in the international subsidiaries on 31 March 2008.