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PCB | August 03, 2005

Aspocomp in the red

Aspocomp's second-quarter result was in the red, with earnings per share amounting to EUR -0.28 (Q2/2004: 0.14). Aspocomp believes however that the Group's net sales will grow in the second half of the year compared with the first half.

Net sales came in at EUR 39.1 million (52.9). Earnings per share in the January-June period were EUR -0.39 (0.23) and net sales EUR 82.5 million (100.5). The delivery chain of the electronics industry was once again subjected to price pressures on a global scale during the quarter now ended. Aspocomp's net sales decreased by 26% compared with the corresponding period of last year. Net sales were down 10% on the first quarter of the present year. The drop in net sales was due largely to the weak performance of the Salo printed circuit board facility and the Modules segment. A major transition process geared towards increasing competitiveness is currently under way at the Salo plant. Its implementation significantly cuts into net sales for the present year. The high- volume product of the Oulu module plant is in the final stage of its life cycle, decreasing the net sales of the Modules segment. The operating result was EUR -5,0 million (4.0). The main reasons underlying the weakened operating result were the poor performance of the Salo plant and the decline in the previously high earnings of the Modules segment. In addition, the result is weakened by product inventory write-downs of EUR 0.6 million at the Thai plant. The result before taxes and minority interest was EUR -5.3 million (3.7) and earnings per share amounted to EUR -0.28 (0.14). The net result was EUR -5,6 million (2.8). Investments in fixed assets amounted to EUR 7.1 million (3.7). The major investments were earmarked for the Salo plant. It is anticipated that the Aspocomp Group's net sales will grow in the second half of the year compared with the first half, but consolidated net sales this year are estimated to fall significantly short of the previous year's figure (2004: EUR 197.4 million). The third quarter will most likely be similar to the quarter now ended and in the last quarter net sales are expected to improve. The Group's result for 2005 is expected to be clearly in the red. The net sales and profitability of the main business segment, Printed Circuit Boards, are forecast to improve in the latter part of the year. The net sales and profitability of the Modules segment are estimated to remain at the same level as in the second quarter. "Aspocomp's second-quarter earnings trend was unsatisfactory. We expect the result for 2005 to be weak on the whole. We have started up numerous measures at our units with a view to increasing cost-effectiveness and honing both flexibility and design expertise. Our objective is to achieve profitable long-term growth. The measures we have implemented at Aspocomp units, the trend in our business environment, and the company's strategy and objectives are discussed in greater detail in a separate release that will be released today." More on the story Read the full interim report here Read about Aspocomp Group OYJ CEO'S review and business goals
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