Electronics Production | June 23, 2005
NOTE is making provisions for feared write-downs
Swedish EMS-Provider, NOTE AB, is making provisions for feared write-downs of about EUR 6.5 - 7.5 million, which will debit the result for the second quarter this year. However, the group's current business is displaying a stable profit.
During a review of the group's stock, accounts receivable and activated costs we have made the assessment that we must make provisions for write-downs of parts of these items at the Norrtälje and Borås factories. The revaluation is in part the result of underlying agreements with the customers not being deemed sufficiently binding. "It does not feel good having to make these provisions, but it has always been my philosophy that if there is a risk of loss it must be identified and eliminated as soon as it is detected," says the new group manager Kjell-Åke Andersson. "I also wish to state", says Kjell-Åke, "that it feels good that this is now behind us, and at the same time be able to declare that the group's current business is generating a positive cash flow and displaying a stable profit."