EMS market positive for Scanfil in Q2

Operating profit EUR 7.7 (9.2) million, 8.2% (9.3%) of turnover. Operating profit without non-recurring items EUR 5.2 million, 5.5% of turnover. Profit for the review period was EUR 5.9 (7.9) million April – June Turnover totalled EUR 53.9 million (Q2 2009: 49.9) up 7.9%. Operating profit EUR 6.2 (5.0) million, 11.6% (10.0%) of turnover. Operating profit without non-recurring items EUR 3.8 million, 7.0% of turnover. Profit was EUR 3.9 (6.6) million, 7.3% (13.2%). In terms of contract manufacturing operations, market development was positive during the second quarter. Demand by both professional electronics and telecommunications customers grew in the second quarter. Strengthened demand supports our trust in a gradual recovery of the market during the current year. Investments in equipment for both electronics and mechanics manufacturing and the new facilities the company acquired in Suzhou after the end of the review period ensure our capability to meet our customers’ growing needs in both Europe and Asia”, according to Harri Takanen, President of Scanfil. Although sales for the entire review period were 4.9% less than that of the corresponding period last year, the recovery of demand that began at the end of the first quarter continued in the second quarter. Sales in the second quarter were significantly better than sales in both the first quarter (+32%) and the corresponding quarter last year (+8). The development of sales was positive in both telecommunications and professional electronics markets. Professional electronics customers accounted for 51% of total sales in the review period (47% during the corresponding period in 2009) and telecommunications customers for 49% (53%) of total sales. The customer division and sales monitoring of Scanfil EMS subgroup has been reorganised to better match customers’ product range and the company’s internal reporting. The new customer groups are professional electronics customers and telecommunications customers. The reorganisation will increase the proportion of professional electronics customers by 2 to 3 percentage points compared to the previous arrangement. The deliveries of equipment purchased in order to increase the surface-mounting technology capacity of the subsidiaries in Estonia and Suzhou, China, are progressing according to plan. In Estonia, production with the equipment began in July. In Suzhou, the equipment will be installed in the new production facilities to be acquired and, according to estimates, they will be ready for production during the last quarter of the year.