© Scanfil Electronics Production | October 25, 2019
Positive development for Scanfil during Q319
The Integration of HASEC is progressing according to schedule, the company’s sakes are increasing and profitability is looking strong – all in all, an operationally strong quarter.
The turnover in the third quarter was EUR 152 million, showing an increase of EUR 21 million, 16% from the previous year. “More than half of the growth was organic, and the rest from the acquisition of HASEC-Elektronik GmbH made in June. The turnover growth was particularly strong in the "Industrial" and "Medtec" segments,” says CEO Petteri Jokitalo in the company’s quarterly report. Scanfil showed an operationally strong quarter; operating profit increased 38% YoY to EUR 12.1 million, 7.9% from the turnover. The company says that the strong profitability was driven by the factories' overall good performance and high utilisation rate as well as the favorable product mixes. Net cash flow from operations for the quarter was EUR 7.3 million. The integration of HASEC-Elektronik GmbH, a German contract manufacturer acquired in June, is well underway. Building common business models and strategy for 2020 is progressing on schedule. “Scanfil has been received well by HASEC customers. Customers are clearly positive about Scanfil’s resources and potential that Scanfil brings as a global manufacturing partner. The received feedback fully supports our view that Scanfil has an excellent opportunity to grow business with Central European customers not only locally but also globally, especially from the factories in Eastern Europe, China, and the USA. Customers are in demand with our service offering and factory network; now, we need to show our ability to realize customer potential into sales,” says Jokitalo Scanfil expects demand to continue to strengthen towards the end of the year and fourth-quarter sales to be strongest in the year. The company is also expecting sales to continue at a strong level in the first quarter of 2020. “We believe so, despite the fact that many of our customers have lowered their end-of-year demand forecasts due to general market uncertainty or purely customer-specific reasons. Based on the changed outlook, we update our financial guidance for 2019 and estimate our turnover for 2019 to be in the range of EUR 570-590 million and the adjusted operating profit of EUR 39-41 million,” Jokitalo explains.