Electronics Production | August 08, 2006
Evox Rifa cut losses
Net sales of Finland based capacitor maker Evox Rifa's first half of 2006 were EUR 43.9 million (EUR 41.3 million in 2005). Net sales increased by 6.4 percent compared to the previous year.
Operating income was 0.2 million (loss EUR 2.7 million). Operating income includes EUR 0.6 million of restructuring costs (EUR 2.3 million), and a EUR 1.2 million capital gain from sales of real estates. Loss before taxes was EUR 1.0 million (loss EUR 3.5 million).?Earnings per share were EUR –0.008 (EUR –0.021). Order backlog on June 30, 2006 was EUR 23.5 million (EUR 14.4 million). Demand remained at a good level in all market areas. Demand was strong especially in industrial electronics in the first half of 2006. An increasing proportion of deliveries to end users were carried out through OEM manufacturers. The operating loss includes EUR 0.6 million of one-time costs related to production transfers and restructuring of the US and European operations. The result of the second quarter also includes capital gain of EUR 0.5 million regarding the sale of company's real estate in Weymouth, U.K. The total capital gain for the first half year was EUR 1.2 million, when the sale of the production property in Sweden is also included. The order backlog of the Group was EUR 23.5 million at the end of the first half year (EUR 14.4 million). At the end of 2005 the order backlog was EUR 17.7 million. The order backlog is expected to remain at a good level in the third quarter of 2006. Evox Rifa's president, Tuula Ylihäinen, noted that the profitability of the Suomussalmi factory was weak, but was forecast to improve.