Electronics Production | October 20, 2009
Note: sales decreased 33% in 3Q
3Q-Sales for the Sweden-based EMS-provider Note stood at SEK 267.4 million (398.5) - a decrease of 33%. Extra sales from newly acquired units were SEK 7.9 m, or some 3% of sales. Thus, in like-for-like terms, sales fell by 35%.
After a weak start to the quarter in volume terms, mainly related to longer vacation stoppages by many customers, some demand recovery was noted after the summer. Sales in Industrial were down 27% on the previous year’s level. Sales in Telecom benefited from the settlement with NOTE’s largest customer in the Telecom segment. However, overall sales for the period were down 44% year on year. Readers should note that last year, sales were a record high for a third quarter. In line with the current cost-cutting measures, NOTE’s employee headcount continued to reduce. Compared to the end of the second quarter, staffing in the Swedish business was down by another 12%. As a result of the current restructuring, ongoing costs for the period were down 27% year on year. Operating profit for the period was charged with non-recurring costs of just over SEK 56 m, combined with reduced sales, and that there was an operating loss of SEK -61.4 (14.2) m, equivalent to an operating margin of -23.0% (3.6%). Adjusted for non-recurring costs, the operating margin was -2.1%. The net financial income/expense for the period was positively affected by lower market interest rates and the new funding facility, which was in place in the second quarter. Additionally, the positive cash flow for the period contributed to the slight decrease in net debt. Accordingly, net financial income/expense improved to SEK -1.3 (-2.2) m. The loss after financial items was SEK -62.7 (12.0) m, equating to a profit margin of -23.5% (3.0%)