© Elcoteq Electronics Production | May 16, 2011
Elcoteq's EMS segment with 90% of Group’s net sales
Net sales of Elcoteq's EMS Business Segment started to pick-up and stabilize at current level during 2010. However, total annual net sales of the EMS segment declined to EUR 962.9 million (1'413.1) in 2010.
Overall the segment was able to further reduce costs to offset the volume decline, improving annual operating result to –5.5 million euros (–60.2). EMS Business Segment’s profitability improved quarter by quarter during 2010 reaching positive results in Q4 2010. Customers for this segment include Aastra, Cassidian, Cinterion, ebm-papst, Funai, Huawei, Humax, Inmarsat, Philips and Technicolor. This positive development was driven by the successful implementation of cost reduction projects during the year and achievements in the customer portfolio improvement. Elcoteq EMS Business Segment attracted new customers during 2010, thanks to competitive service offering and proven track record in the industry. Outlook for 2011 The global electronics market is set to grow during the next years. The outsourced electronics manufacturing market excluding original design manufacturing had an annual turnover of more than 150 billion US dollars in 2010, according to industry research companies. After some downturn in recent years, the EMS market is expecting a compound annual growth rate of approximately 10% over the next four years.