Electronics Production | November 03, 2008
Salcomp increases net sales by 6% in 3Q
Salcomp’s net sales increased by 6% in July–September to €74.8 million (€70.5 million in 7–9/2007). The increase resulted from the number of chargers delivered rising by 19% to 73.6 million (61.8 million) pieces. The market share in mobile phone chargers was approximately 23% (approximately 22%).
Financial Development in July - September 2008 Operating profit decreased by 62% to €2.4 million (€6.3 million). Profitability was weakened by realized and unrealized exchange rate losses of €2.8 million. The exchange rate losses were related to sharp changes between the €, US$ and currencies in the countries where Salcomp has production. Especially the Indian rupee and the Brazilian real weakened considerably during the third quarter. The exchange differences were mainly due to intragroup receivables and payables. In addition, the operating profit was burdened by lower gross margin compared with the comparison period, mainly due to the decline in sales prices. The sales prices were lowered due to changes in the product mix, as well as tightening competition in the mobile phone charger market. The Group’s net financial expenses were €1.3 million (€0.9 million). The financial expenses for the third quarter include €0.5 million (€0.1 million loss) of losses due to the unrealized exchange rate differences in intragroup loans. Taxes for the period totalled €1.1 million (€1.1 million). They include a deferred tax of €0.7 million (€0.7 million) resulting from the parent company’s tax-deductible goodwill amortization. The third-quarter net result amounted to €0.0 million (€4.3 million). Cash flow from operating activities was €3.7 million negative (€1.5 million positive) due to an increase in working capital. Cash flow from operating activities, excluding the change in selling of receivables, was €0.9 million negative (€7.9 million positive). Personnel The Group employed 10,355 (9,241) people at the end of September: some 6,700 in China, 1,700 in Brazil and 1,900 in India. Hannu Hyrsylä, Vice President, Global Sourcing, was appointed as a member of the Global Management Team as of 12 August 2008. Other members of the Global Management Team are: Markku Hangasjärvi, President and CEO, Osmo Oja, Vice President, Global Operations, Niilo Oksa, Vice President, Human Resources, Antero Palo, Vice President, Sales and Marketing, Juha Raussi, Vice President, Research and Development and Markku Saarikannas, Vice President, Strategic Planning. Antti Salminen, CFO, has accepted a position with another employer and will resign from Salcomp on 12 November 2008. Jari Saarinen has been appointed as the new CFO and a member of the Global Management Team as of 25 January 2009. Markku Saarikannas, VP, Strategic Planning, will act as the CFO from 13 November 2008 until 24 January 2009. Pekka Kyyriäinen has been appointed Vice President, Global Operations, and a member of the Global Management Team at Salcomp as of 1 January 2009. Osmo Oja who is the present VP, Global Operations, will be in charge of the development projects in Salcomp’s global operations until autumn 2009 when he will retire. In addition to the responsibilities of VP, Global Operations, Pekka Kyyriäinen will continue as General Manager at Salcomp China and his place of business is Shenzhen. Salcomp’s codetermination negotiations, which began in August, were concluded on 30 September 2008. The negotiations concerned all activities in Finland, and the target was to investigate the possibility to transfer some functions from Finland to China and centralize the Finnish activities to Salo, Finland. As a result of the negotiations, a total of 18 employments will be terminated. The Finnish activities will be centralized to Salo and the office in Kemijärvi will be closed by the end of April 2009. Outlook for rest of the year According to the estimates published by some of Salcomp's key customers and by various market research companies, the mobile phone market is expected to grow in volume by approximately 10% during 2008, compared with 2007. Net sales in 2008 are expected to grow compared with 2007, but the operating profit in value is expected to be below the 2007 level.
Heidenhain opens new expanded Western US HQ This includes the expansion of its executive, sales and technical support offices, as well as demo facilities in San Jose, California.
Delphi Technologies awarded new power electronics business Delphi Technologies is making new strides by securing new power electronics business wins in the second quarter of 2020 with three Chinese OEMs. The new business is scheduled to launch in the 2021-23 timeframe.
Mycronic combines US operations in new facility near Boston Mycronic US says that all of its operations have been integrated into a new 102,000 square-foot facility in Tewksbury, near Boston, Massachusetts.
Lynn Electronics acquires West Coast cable assembly company Pennsylvania-based Lynn Electronics, a manufacturer of fibre optic and copper cable assemblies, has completed its acquisition of Coast 2 Coast, LLC (C2C), an Anaheim, California cable assembly manufacturer.
Fictiv and Jabil team up for agile 3D printing collaboration The collaboration aims to accelerate and de-risks product development in the move from prototyping and low volume production to large scale global fulfilment.
TT expands with new industrial electronics manufacturing facility The UK-based electronics manufacturing specialist is expanding the footprint of its Global Manufacturing Solutions division by opening operations in Kuantan, Malaysia.
GE Appliances invests $62 million at its Louisville facility The manufacturer is gearing up to build high-end refrigerators and expand capacity at its manufacturing facility in Louisville, Kentucky., creating 260 new jobs.
Eaton buys new facility – merges busway operations from multiple sites Power management company Eaton has purchased a new facility in Hodges, South Carolina, establishing a new home for Eaton’s busway product line currently spanning three facilities across Greenwood County.
AIM adds new facility in Brazil AIM Solder has opened a new wholly-owned facility in Manaus, Brazil. This new stocking facility, which represents the only legitimate source of AIM products in Brazil, enables the company to support a growing Brazilian market.
PFOA now in REACh and POP regulation On 4 July, PFOA - perfluorooctanoic acid, its salts and precursor compounds - was included in the POP (Persistent Organic Pollutants) Regulation (EU) 2019/1021 and at the same time also came into force in the REACh Regulation (Annex XVII, entry 68).
Manz AG receives further Battery order Manz AG is expanding its successful partnership with an international battery manufacturers in the Energy Storage segment with a further major order in the mid double-digit million euro range.
Advantech and Interlatin to set up JV in Mexico Industrial IoT specialist, Advantech, says it is establishing a joint venture subsidiary in Mexico with its channel partner Interlatin.
Mercedes-Benz takes equity stake in Farasis Mercedes-Benz is taking another important step on its journey towards CO₂--neutral mobility. The Stuttgart-based car manufacturer has launched a strategic partnership with Chinese battery cell manufacturer Farasis Energy (Ganzhou) Co., Ltd., including taking an equity stake.
A new EMS provider sees the light of day EMS providers DataED and Bestronics merge to launch a new player – Emerald EMS.
Tektronix joins the fight agains COVID-19 Tektronix has shifted its focus from supporting vehicle manufacturing to assisting with ventilator production.
ABB completes divestment of Power Grids to Hitachi ABB has reached a significant milestone in the company’s transformation towards a decentralized global technology company, with the completion of the divestment of 80.1% of its Power Grids business to Hitachi.
Germany amps up domestic battery production with massive state subsidies The German government is investing more than EUR 1.5 billion in battery cell research and production.
Internal promotions and executive retirements at Kimball EMS provider, Kimball Electronics, has made two new internal promotions aimed at contributing to the company accelerating its strategic growth plans.
Kyocera & TMDU team up for research on vitals measurement headset Kyocera Corporation and Tokyo Medical and Dental University (TMDU) have teamed up on a joint research project to develop a wireless headset that can remotely monitor high accuracy patient biometrics, such as blood oxygen saturation (SpO2).
German battery manufacturer receives funding for cell production facility VARTA AG receives public funding of EUR 300 million for battery cell production facility.
Scanfil to streamline its factory network The EMS provider is planning to combine the production of its Hamburg factory with its other factories in Germany and Poland
Kitron awarded new order within measurement technology Kitron has been awarded new business for measurement technology. The award covers a period of five years, and the expected annual value is between EUR 3.5-5 million.
NORBIT ASA awarded aquaculture contract Norwegian technology manufacturer, NORBIT, has been awarded a new contract from an existing customer within the aquaculture market.
Saki strengthens its Asian operations The AOI specialist is expanding its global sales organisation with new Asia sales department, and appointing Katsuhiro Eddie Ichiyama as Senior General Manager for the Asian regionLoad more news