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Electronics Production | July 15, 2008

PKC improves results and grows further

Finnish EMS provider PKC Group increased its turnover by over 20% during this year’s first half.
The Finland based EMS provider PKC Group increased its sales during the first half by 20,9 % to 173.7 million euro(143.6 million in Jan.-June 2007). Operating profit was 19.0 million euro(13.8 million) and profit before taxes was 17.1 million euro (13.2 million).

“The continued record growth in our customer sectors helped us achieve an excellent operational result in the first half of the year. We have fine-tuned our core strategic objectives for the near future. We are striving to further increase the number of customers in both our businesses by, among other things, venturing into new market areas and segments. We will continue our efforts to improve our competitiveness by rationalising production and shedding fixed expenses. Due to the rationalisation measures that were already started, the profit of the Wiring Harness business for the second quarter was decreased by about EUR 1.5 million additional costs. The increased uncertainty in the world economy is reflected in our future outlook. The downturn in the world economy is speeding up structural developments in our customer sectors, creating new opportunities for the long-term development of our business operations”, commented PKC Group’s CEO Harri Suutari.

During the second quarter PKC performed almost as good as for the whole first half period. Consolidated net sales in April-June amounted to 88.6 million euro(73.7 million), up 20.2% on the same period a year earlier. Consolidated operating profit totalled 9.6 million euro (7.3 million), accounting for 10.9% of net sales (10.0%).

Net sales generated in the report period by the Wiring Harnesses business amounted to 69.3 million euro(59.8 million), or 15.9% more than in the comparative period. The segment's share of consolidated net sales was 78.2% (81.1%). It generated an operating profit of 5.1 million euro(5.6 million), equivalent to 7.3% of the segment's net sales (9.3%). The profit was affected by 1.5 million euro additional costs related to reorganisation.

Net sales generated by the Electronics business grew 38,6% to 19.3 million euro(13.9 million). The segment's share of consolidated net sales was 21.8% (19.0%). It generated an operating profit of 4.5 million euro(1.8 million), equivalent to 23.5% of the segment's net sales (12.5%).

Net sales generated in the report during the period January-June by the Wiring Harnesses business amounted to 138.6 million euro(117.9 million), or 17.6% more than in the comparative period. The segment's share of consolidated net sales was 79.8%(82.1%). It generated an operating profit of 12.1 million euro (10.5 million), equivalent to 8.7% of the segment's net sales (8.9%).

Net sales generated by the Electronics business during the first half of 2008 grew 36.1% to 35.0 million euro(25.8 million). The segment's share of consolidated net sales was 20.2% (17.9%). It generated an operating profit of 6.9 million euro(3.3 million), equivalent to 19.6% of the segment's net sales (12.8%).

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June 15 2018 12:12 am V9.6.1-1