PCB | February 26, 2010
Aspocomp Group sales decline in 2009, sees improvement in demand
PCB producer Aspocomp Group's net sales for the financial year amounted to EUR 13.2 million, representing a comparable year-on-year decline of about 36 percent.
The five largest customers accounted for 72 percent of net sales, compared with 74 percent in 2008. In geographical terms, 81 percent of net sales were generated in Europe (81% in 2008), 14 percent in Asia (8.5%) and 5 percent in other regions (10.5%). The operating result for the financial year was a loss of EUR 1.7 million, as against a profit of EUR 0.5 million in 2008. The operating result was weakened by the substantial decline in demand that lasted until the third quarter. The company continued to take steps until the third quarter to adjust its cost structure in line with both its size and the lower demand. Non-recurring costs due to downscaling measures, pension liabilities and credit losses totaled slightly over EUR 0.5 million. That said, earlier provisions in almost the same amount were reversed during the financial year. The Group's net financial expenses were EUR -1.0 million (-2.9). The result for the financial year was EUR -2.5 million (-2.5). Thanks to the improvement in demand, it is expected that net sales will grow and the operating result for 2010 will be in the black. “Although 2009 was a tough year, the final quarter was favorable. Toward the end of the year, demand improved intermittently, and in 2010 we expect it to remain higher than last year. Net sales and earnings during the year now ended were disappointing. However, thanks to tight cost control and the stringent management of receivables, our cash flow after investments remained in the black and our liquidity was good. The global recession has had a twofold impact on demand. Due to the decline in electronics manufacturing volumes, the need for quick-turn deliveries decreased. On the other hand, low demand drives volume manufacturers to compete with faster delivery times and smaller delivery volumes. We're starting out 2010 with brighter prospects and seek to pursue growth in net sales and a positive operating result”, said the President and CEO. Fourth-quarter net sales amounted to EUR 4.2 million, down 2.8 percent on 2008. The five largest customers accounted for 71 percent of net sales (71%). The operating result was EUR 0.4 million, while it was EUR 0.1 million in 2008. Earnings improved thanks to better demand and the cost structure adjustments implemented earlier during the financial year. Because of the agreement on debt restructuring, management of the Group's liquidity risk is based on the cash assets of the parent company and the cash flow generated by the Oulu plant. If Aspocomp Group Plc. does not obtain financing from Aspocomp Oulu Oy or other ways of financing, the company may ultimately become insolvent.