©/ Electronics Production | February 21, 2012

Cencorp: "the year was not particularly good"

Cencorp's profitability weakened year-on-year despite an increase in net sales.
The Groups net sales totaled EUR 26.5 million (EUR 12.8 million).EBITDA was EUR -3.1 million (EUR -2.0 million), while its operating result was EUR -7.0 million (EUR -3.1 million). The result for the reporting period was EUR -7.5 million (EUR -3.5 million).

”Despite the increase in net sales, our profitability weakened clearly year-on-year. Profitability was burdened by problems in the Special Components segment, particularly in product groups related to the mobile phone sector, ”said President and CEO Mats Eriksson. "The Laser and Automation Applications segments profitability had initially developed favorably, but as net sales declined later during the year, profitability took yet another downward trend during the latter half of the year”.

Two fold year
The year was twofold in the market for laser and automation applications. During the first half of the year, a favorable economic situation boosted demand for investment commodities, such as the laser and automation
applications manufactured by Cencorp. During the latter half of the year, uncertainty in the global economy increased and demand for laser and automation equipment declined strongly, in particular in Europe and in the US. Demand for maintenance services and spare parts also decreased substantially.

Outlook for 2012
Cencorp estimates its net sales to increase compared to 2011 and the full-year EBITDA is estimated to be positive provided that no essential change takes place in the operating environment or in the current economic outlook. The focus this year in the Laser and Automation Applications segment will be on growth in the Asian market, where rising salaries favor the development of automation.

”Although the year was not particularly good, I am satisfied with our new breakthrough: at the beginning of 2012, we concluded a significant multi-year agreement on the supply of flexible circuits to a customer operating in the
renewable energy sector. Trial deliveries have already started. I believe that we will be able to increase sales in both our segments in this growing sector,”said Eriksson.


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