2008 a positive year for BB Electronics despite financial crisis

BB Electronics, who produces electronics for customers within the industry, telecom and medical segments, will publish the final audited annual accounts in the end of March 2009, which will include a result for the financial year 2008 with an EBITDA between MDKK 50 - 55, a profit before tax between MDKK 18 - 22 and a reasonable equity ratio between 30 - 35%. The result must primarily be attributed to efficiency improvements as a result of LEAN, a number of investments in capacity increases and development of the business with new and existing customers - not at least within high-tech areas in small and medium size series, which are BB Electronics' core business areas. The company's Technology Centre, which was inaugurated in the end of 2007, has experienced a heavy growth in the production of prototypes during 2008, which among others is the result of a considerable investment in state-of-the-art production equipment in the same high standard as in the factories. This means that the centre today can offer the customers prototypes very quickly and at the same time the transfer to serial production can take place fast and cost efficiently. - We now see the result of the heavy investments we made in 2008 in our Technology Centre, but also in our 3 other factories. It is positive to experience that our Chinese factory continues the healthy development in 2008, which we expect will continue in 2009, CEO Knud Andersen explains. - The closing down of the factory in Sønderborg in the end of 2007 with the following transfer of products has been finalised during the first quarter of 2008. Furthermore, we have experienced a very positive development in our business with new customers where we have entered into agreements with more than 20 new customers during 2008. Our expectations to 2009 are positive and a turnover of at least the same level as in 2008 as well as increased earnings is expected. However, BB Electronics will be able to produce significantly more due to the above-mentioned investments in capacity increases, Knud Andersen continues. Throughout 2008 there has been great focus on the continued implementation of the LEAN principles in the factories, which means that the company today is a strong and firmly based partner who can offer both existing and new customers a high delivery performance, bigger flexibility and a low net asset value. The LEAN principles will in 2009 be implemented in all the company's processes and not at least in logistics and stock - the so-called supply chain, which will strengthen the customer service additionally, Knud Andersen concludes. BB Electronics employs approximately 900 employees in the Technology Centre and in the factories in Horsens, Give and Chinese Suzhou.