Scanfil sales in Q3 were on par with the previous quarters

"Sales in the third quarter were on par with the previous quarters of the year. Taking the market situation into account, we consider this a satisfactory achievement. The demand focused more on telecommunications customers than during the previous quarters, while demand from industrial electronics customers was weaker, accordign to Harri Takanen, President of Scanfil. "We have reached good results in developing the company. The Chinese operations in particular have been able to continuously improve their performance, thereby improving their position in the market. Measures will be continued along the chosen line across all sites. Our target is profitable growth. We believe that also this year, the decrease in our sales has been less than the rate at which the market has declined, meaning that our relative position has strengthened." The total demand by Scanfil's telecommunications and industrial electronics customers has been steady throughout the year. Demand by industrial electronics customers developed positively during the first two quarters, whereas during the third quarter, demand by telecommunications customers picked up slightly compared to the first half of the year. Industrial electronics customers accounted for 43% of total sales in January-September (38% during the corresponding period in 2008) and telecommunications customers for 57 (62) %. The Group’s turnover in January – September was EUR 149.2 (164.7) million, showing a decrease of 9% over the previous year. Distribution of turnover based on the location of customers was as follows: Finland 38 (50) %, rest of Europe 21 (18) %, Asia 40 (30) %, USA 1 (1) % and the others 1 (1) %. The Chinese subsidiaries’ sales accounted for 43 (36) % of the Group’s sales during the review period including deliveries to the Group's other plants. Scanfil has successfully continued to develop the production methods at its plants with particular emphasis on reduction of throughput times, reliability of deliveries and quality development. The continuous improvement measures have realised as planned, and the company's profitability for the review period was on a very satisfactory level, with an operating profit of EUR 13.4 (16.6) million, or 9.0 (10.1) % of turnover. Profit for the review period amounted to EUR 11.6 (13.4) million. Turnover in July – September was EUR 49.6 (56.0) million. Operating profit in the third quarter totalled EUR 4.2 (5.2) million, representing 8.5 (9.3)% of turnover. Profit for the quarter was EUR 3.8 (3.5) million. In accordance with the Chinese tax legislation that entered into force at the beginning of the year, EUR 0.9 million of tax at source has been paid on the dividends distributed by the Chinese subsidiaries.