1Q sales slightly down for Connect Group

For the first 3 months of 2012 Connect Group posted net sales of EUR 41.6 million vs. 43.1 million in the first quarter of 2011. It should be noted that the Q1 2011 was an exceptionally good quarter in which the Group caught up on delivery delays caused by the component shortage in late 2010. Net profit developed positively to EUR 1.3 million compared with EUR 1.0 million in the first quarter of 2011. The order book increased to EUR 80 million compared with EUR 70.7 million at the end of 2011. This increase is mainly due to the acquisition of the Halin group in the Netherlands in early 2012, which adds EUR 8 million to the order book. The current economic climate and the uncertainty of financial markets in Europe are playing an important role in demand for electronic components and systems. Clients defer orders but also ask for faster production starts. This calls for a high degree of employee flexibility and introduces a limited degree of inefficiency into the organization. Based on the order book, Connect Group remains positive for the rest of the year. The group's financial position has been considerably strengthened by the capital increase in 2011 and the good results of 2011 and 2012. The financing through factoring provides sufficient space for the company to absorb all necessary working capital fluctuations.