Salcomp sales up, profit down

Full-year net sales are expected to total EUR 230–260 million and relative profitability, expressed as operating profit percentage, is estimated to be approximately 6%. "The mobile phone market grew at an even faster pace than estimated, leading to a significant increase in Salcomp's net sales. Measures required by strong growth, such as the faster than expected roll-out of new production lines, as well as external factors, such as a steep increase in material expenses and the customs strike in Brazil, burdened our operating profit, which fell clearly short of the comparison period. The result was a clear disappointment to us at Salcomp. Corrective actions, such as cost structure development, are on-going in all functions.”, Mats Eriksson, President and CEO.