© Scanfil Electronics Production | February 19, 2020
Scanfil CEO: ‘Our operations are making good progress’
The last quarter of 2019 was the strongest one for the EMS provider. Scanfil recorded a turnover of EUR 155 million, a growth of EUR 15 million or 10% year-over-year.
As stated earlier, the company’s turnover amounted to EUR 154.7 million, an increase of increase 10.3% from EUR 140.2 million for the same quarter 2018. Operating profit was EUR 10.0 million, compared to EUR 7.5 million in 4Q18, which represents an increase of 33.2% from last year. Profit ended up at EUR 9.8 million, up from EUR 6.4 million. For the full year of 2019 turnover increased 2.9% from EUR 563 million and ended up at EUR 579.4 million. Operating profit amounted to EUR 35.3 million, compared to EUR 37.8 million for 2018. Profit for the review period was EUR 28.1 million, a slight decline from EUR 28.9 million. “A little more than one-third of this growth was organic, while the acquisition of HASEC-Elektronik GmbH in June accounted for the rest. Our annual turnover increased in all customer segments, apart from the Communication segment. The turnover of the Industrial and Medtec segments, in particular, improved significantly,” says CEO Petteri Jokitalo, in the fiscal report. Scanfil estimates that its turnover for 2020 will be EUR 590 – 640 million and adjusted operating profit will amount to EUR 39 – 43 million. However, the company stresses that this estimate is based on the current understanding of the impact of the Coronavirus and that it can change. Jokitalo says that the current strategy is to make progress in Germany in perticular, but also more broadly in Central Europe. “The region has highly attractive contract manufacturing markets, offering a huge growth potential for Scanfil: German markets alone are roughly four times larger than Nordic markets, and manufacturing services still have a low outsourcing rate. The acquisition of HASEC clearly improved Scanfil's access to this market potential. We can provide HASEC's customers with Scanfil's global plant capacity and full-service range,” Jokitalo details. At the moment, there is particular uncertainty in this year's threats from the Coronavirus epidemic, particularly in China during the first quarter. “Following the Chinese New Year, our Chinese factories located in Suzhou and Hangzhou, were opened on February 10 and 11, a rough week after the original schedule, according to local authority guidance. If the extra shutdowns remain only for that week and supply chains will be recovering as estimated, we are not expecting material impacts to our sales in 2020,” the CEO says in the fiscal report. However, there are unknown risks associated with the spread of Coronavirus, which may have longer-term effect on Scanfil’s customers' demand and supply chain operations. According to original sales forecast for 2020, the expected sales in China is about 20% of total sales. “I am satisfied with our performance in 2019. Our operations are making good progress and our strategic position in Central Europe strengthened through the acquisition of HASEC,” the CEO concludes.