© PKC Group Electronics Production | February 21, 2011
PKC Group with net sales growth of 56.6% Y-o-Y
“During the final quarter, the sales of PKC Group continued to grow along with the recovery of the markets. Sales increased in both business segments and in all of our market areas. [...] Profitability improvement was limited by unfavourable price development of raw and other materials. However, profitability remained at a good level thanks to the growth in sales and the cost reductions made earlier", states Harri Suutari, President and CEO.
Operating Environment - Wiring Harness business Registrations of heavy trucks increased in Europe (EU, Norway and Switzerland) in 2010 by about 8% compared to 2009. About 179'000 heavy trucks were registered during the financial year. The number of registrations in Europe is still exceptionally low. The industry and analysts expect the number to increase to about 220'000 – 230'000 registrations in 2011. In Brazil, deliveries of heavy trucks increased by about 64% from the previous year, totalling about 110'000 vehicles. Our customers’ order volumes from the final quarter support the automotive industry’s general assumption of the markets remaining at least at the current level in 2011. Registrations of heavy trucks in North America increased in 2010 by about 20% from the previous year, totalling about 140'000 trucks. The industry and analysts expect the number to increase to about 220'000 registrations this year. The order intake from the last four months (October 2010 to January 2011), about 100'000 vehicles, shows signs of strong growth in North America. In North America, the recreational vehicle deliveries of our customers increased in 2010 by about 50% from the previous year’s level. Although PKC Group has no wiring harness production of its own in Asia, the increasing export to Asia by our customers supports the growth of PKC’s production volumes. The sales of construction equipment increased in Europe by about 4% from the previous year. The market is expected to growth a further 5 – 15% during 2011. Sales of agricultural tractors declined in Europe in 2010 by 10% from the previous year’s sales. By contrast, forestry equipment sales increased from the exceptionally weak comparison year. Operational Environment - Electronics business The recovery of the global economy and revival of the electronics industry increased the demand for the design and manufacturing services of PKC’s Electronics business in 2010. In particular, customers in the industrial electronics and energy segments increased their sales during the latter half of the year. Due to the global growth in the electronics industry, there have still been problems in the availability of electronics components. Net Sales & Financial Performance - October-December 2010 Consolidated net sales from October-December amounted to EUR 91.9 million (EUR 55.4 million), up 66.0% on the same period a year earlier. Consolidated operating profit totalled EUR 9.8 million (EUR 2.6 million), accounting for 10.6% of net sales (4.8%). During the report period were reported EUR 0.2 million in non-recurring expenses (the operating profit on the same period year earlier included a non-recurring item of EUR 0.7 million as a result of the costs of rationalisation being lower than what had been estimated). Depreciation amounted to EUR 2.5 million (EUR 2.6 million). Financial items were EUR 3.1 million negative (EUR 0.8 million negative). In addition to EUR 0.7 million interest expenses, a translation loss of EUR 0.8 million related to the translation of subsidiaries’ financial statements, as well as exchange rate loss caused mainly by Group’s internal liabilities totalling EUR 1.6 million have been entered into the financial items. Profit before taxes was EUR 6.6 million (EUR 1.8 million). Profit for the report period totalled EUR 5.3 million (EUR 3.2 million). Earnings per share were EUR 0.29 (EUR 0.18). Net Sales & Financial Performance - January-December 2010 Consolidated net sales from financial year amounted to EUR 316.1 million (EUR 201.8 million), up 56.6% on the previous financial year. Consolidated operating profit totalled EUR 29.7 million (EUR 0.7 million), accounting for 9.4% of net sales (0.3%). The result was burdened by EUR 1.8 million (EUR 4.3 million) mainly in non-recurring rationalisation expenses. Depreciation amounted to EUR 10.7 million (EUR 11.0 million). Financial items were EUR 4.7 million negative (EUR 0.4 million). In addition to EUR 2.0 million interest expenses, a translation loss of EUR 1.0 million related to the translation of subsidiaries’ financial statements as well as exchange rate losses caused mainly of Group’s internal liabilities totalling EUR 1.8 million have been entered into the financial items. Profit before taxes was EUR 25.0 million (EUR 1.1 million). Profit for the financial year totalled EUR 19.7 million (EUR 2.3 million). Earnings per share were EUR 1.09 (EUR 0.13). Net sales generated by the Wiring Harness business in the financial year amounted to EUR 242.4 million (EUR 149.4 million), or 62.3% more than in the previous financial year. The segment’s share of the consolidated net sales was 76.7% (74.0%). Wiring Harness business generated an operating profit of EUR 24.5 million (EUR 3.9 million negative), equivalent to 10.1% of the segment’s net sales (2.6% negative). The result of the Wiring Harness business was burdened in total by EUR 1.8 million (EUR 4.4 million) in non-recurring expenses. Net sales generated by the Electronics business increased by 40.4% to EUR 73.7 million (EUR 52.5 million). The segment’s share of the consolidated net sales was 23.3% (26.0%). Electronics business generated an operating profit of EUR 7.7 million (EUR 4.6 million), equivalent to 10.4% of the segment’s net sales (8.7%). Personnel During the financial year, the Group had an average payroll of 5'039 employees (4'478). At the end of the financial yaer, the Group’s personnel numbered 5,765 employees (4'077), of whom 5'326 (3'617) worked abroad and 439 (460) in Finland. In addition the Group had at the end of the financial year 708 rented employees. As a result of the co-determination negotiations concluded in March 2010, it was decided to lay off a total of 45 persons from PKC Wiring Systems Oy. Non-recurring costs arising from layoffs were recorded during the first half of the year to the total amount of EUR 0.6 million. As a result of the co-determination negotiations concluded in August 2010, it was decided to lay off a total of 31 persons from PKC Wiring Systems Oy. Non-recurring costs arising from layoffs were recorded during the third quarter of the year to the total amount of EUR 0.5 million. Outlook for the future The number of orders received by automotive industry customers during the final quarter exceeded the number of vehicles they delivered within the same period. The industry is anticipating significant growth this year on the recovering European and North American markets. Markets in the developing countries are also expected to keep growing. Based on this, PKC Group are expecting an increase in the net sales of the Wiring Harnesses segment compared to last year. Customers in the industrial electronics and energy segment steadily increased their sales last year, and the company expects this growth to continue. It is also estimated that the net sales generated by the electronics design and manufacturing services will increase this year. PKC Group estimates that its net sales and comparable operating profit will increase in 2011 from the previous year’s level. In 2010, net sales amounted to EUR 316.1 million, and operating profit before non-recurring items was EUR 31.5 million.
A new EMS provider sees the light of day EMS providers DataED and Bestronics merge to launch a new player – Emerald EMS.
Tektronix joins the fight agains COVID-19 Tektronix has shifted its focus from supporting vehicle manufacturing to assisting with ventilator production.
ABB completes divestment of Power Grids to Hitachi ABB has reached a significant milestone in the company’s transformation towards a decentralized global technology company, with the completion of the divestment of 80.1% of its Power Grids business to Hitachi.
Germany amps up domestic battery production with massive state subsidies The German government is investing more than EUR 1.5 billion in battery cell research and production.
Internal promotions and executive retirements at Kimball EMS provider, Kimball Electronics, has made two new internal promotions aimed at contributing to the company accelerating its strategic growth plans.
Kyocera & TMDU team up for research on vitals measurement headset Kyocera Corporation and Tokyo Medical and Dental University (TMDU) have teamed up on a joint research project to develop a wireless headset that can remotely monitor high accuracy patient biometrics, such as blood oxygen saturation (SpO2).
German battery manufacturer receives funding for cell production facility VARTA AG receives public funding of EUR 300 million for battery cell production facility.
Scanfil to streamline its factory network The EMS provider is planning to combine the production of its Hamburg factory with its other factories in Germany and Poland
Kitron awarded new order within measurement technology Kitron has been awarded new business for measurement technology. The award covers a period of five years, and the expected annual value is between EUR 3.5-5 million.
NORBIT ASA awarded aquaculture contract Norwegian technology manufacturer, NORBIT, has been awarded a new contract from an existing customer within the aquaculture market.
Saki strengthens its Asian operations The AOI specialist is expanding its global sales organisation with new Asia sales department, and appointing Katsuhiro Eddie Ichiyama as Senior General Manager for the Asian region
Scanfil to sell its plant in Hangzhou, China The board of directors of the Finnish EMS prover has decided to sell the entire share capital of its subsidiary located in Hangzhou, China, for a total of EUR 18.4 million to Hangzhou Cabinet Technology Co., Ltd.
Staying put during the COVID-19 pandemic TPCA (Taiwan Printed Circuit Association) announced the production and sales data for Q1 2020; the output value of Taiwan cross-strait PCB industry totalled NT$136.9 billion (approx. US$4.541 billion) in Q1/2020.
North American PCB industry sales up 1.0% in May Total North American PCB shipments in May 2020 were up 1.0 percent compared to the same month last year. Compared to the preceding month, May shipments fell 3.0 percent.
Sensirion expands with new production site in Hungary In a response to positive business trends and the increasing demand for its existing and new sensors, Sensirion is expanding its production capabilities by establishing a production site in Debrecen, Hungary.
Management Change at the Würth Elektronik eiSos Group After 27 years in the Würth Elektronik Group, Oliver Konz has decided to resign his position as Executive Vice President of the Würth Group and CEO of the Würth Elektronik eiSos Group for personal reasons and leave the company.
Kurtz Ersa inaugurates new production hall In Bestenheid, Germany, the company has just opened its new production and administration building. Following 24 months of construction and furnishing, the company now have access to 4’500 new square metres of space.
PCB industry: 1Q/2020 overshadowed by corona pandemic After a significant drop in sales at the end of last year, PCB manufacturers in the Germany, Austria and Switzerland (DACH) region recorded a sales growth of 16.1 percent in the first quarter of 2020.
Integration of ATLID completes European set of instruments for EarthCARE satellite With the successful integration of the ATLID-Instrument the EarthCARE satellite (Clouds Aerosols and Radiation Explorer) has passed a crucial milestone, as it concludes the "onboarding" of the three European instruments.
ABB Robotics rolls out Lexi’s procurement analytics solution Automation giant, ABB Robotics, is using a big data analytics software solution developed by Lexi Solution AB in Sweden to optimise procurement and engineering processes.
OHB placing the largest clean room in operation After only 14 months of construction, the PLATO hall has now been officially completed at space company OHB’s headquarters in Bremen. With a floor area of around 1,400 square meters, the ISO 8 cleanroom*, which is almost eleven meters high, is the OHB Group’s largest cleanroom facility.
Jenoptik expands military laser rangefinder capabilities in the US JENOPTIK Optical Systems, LLC has announced an expansion of its capabilities for military laser rangefinders (LRF) and is adding custom engineering and testing capabilities to their Jupiter, Florida facility.
Tesla plans battery manufacturing facility in California Electric car manufacturer Tesla plans to build a battery research and manufacturing facility in Fremont, California. N, to be operated around the clock, Under a project dubbed Roadrunner, documents from the city government also reveal a potential 24/7 operation at the facility.
Northrop Grumman awards contracts to Kitron Northrop Grumman has awarded Kitron a production contract for Integrated Communications, Navigation and Identification (ICNI) modules for the F-35 Lightning II program.Load more news