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© rainer plendl dreamstime.com Electronics Production | August 09, 2013

Connect Group expects slight increase

Connect Group first half of 2013 - an improvement from 2H12, but worse that the first half of 2012, mainly due to the general market slowdown and economic uncertainty.
Sales improve in the first half of 2013 to EUR 63.0 million from EUR 61.2 million in the second half of 2012 (EUR 79.9 million in H1 2012). Strong improvement in the operating result to give a profit of EUR 130K in the first half of 2013 versus an operating loss of EUR 1.3 million in the second half of 2012 (EUR 2.7 million profit in H1 2012).

Following the sharp drop in sales and the operating loss in the 2nd half of 2012, reflecting the general economic crisis, Connect Group succeeded in slightly increasing sales (+ 3%) and in turning the operating loss (EUR 1.3 million) into a small operating profit of EUR 130K (including EUR 450K of reorganization costs).

Order book of EUR 83.2 million at the end of the first half (EUR 77.0 million at end-2012).

The decline in sales in H1 2013 compared with H1 2012 is due to the general market slowdown and economic uncertainty, with Connect Group as a subcontractor in the electronics industry facing fluctuating order intake since the second half of 2012, the company states in a press release.

“Compared with H2 2012, sales evolved positively. After the strong fall in the third quarter of 2012 and bottoming in the fourth quarter, sales increased in both the first and second quarters of 2013. More significantly, on comparable sales, the H2 2012 operating loss of EUR 1.3 million was turned round into a small operating profit of EUR 130T,” the company writes.

For the second half of 2013, Connect Group expects a slight increase in sales and improved results thanks to new clients and the effect of cost savings. The general tenor of the electronics market continues reticent. This market uncertainty continues to weigh on the outlook.

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