Connect Group: Net loss of EUR 752'000

The net result after taxes for the first quarter was a loss of kEUR 752 compared with a loss of kEUR 380 in Q1 2009 of the continuing activity and kEUR 1,448 loss for the group in Q1 2009 (including automation activity). The orderbook rose from EUR 55 million at end-2009 to EUR 57 million at the end of Q1 2010. Luc Switten, CEO: “The first quarter of 2010 was difficult: positive aspects were a rise in the order book and a general increase in demand. On the other hand delays in components deliveries prevented us from converting the increased order book into effective turnover. We estimate that due to the lack of components in the first quarter we missed over EUR 2 million of turnover, with a direct impact on earnings". "We have made every effort to deliver on time to our customers, where possible purchasing the missing components on the open market at higher prices (brokering). The additional costs of brokering we cannot always, however, pass on to our customers, which has depressed earnings. The shortage of components has also meant less efficient use of production capacity (smaller production series, production line stoppages for conversion to other products), making wage costs higher than normal for the volume produced", he continued. "Until today we see no immediate improvement in the market for the availability of components. We are examining with our customers in how far they can provide us with longer-dated forecasts of their own needs, so as to give us optimal flexibility in the current uncertain component market”, Luc Switten continued in saying. Significant events in 2010 On 2 March 2010 the sale of the automation activity to its former founders, Huub Baren and Vladimir Dobosch was completed. The present figures no longer show the effects of the automation activity. For the sake of comparability the 2009 figures have been restated, with the automation activity shown as a discontinued activity.