Aspocomp’s result hit by the effects of COVID-19

The Finnish PCB manufacturer recorded first-quarter net sales of EUR 6.7 million, a year-on-year decrease of 12% from EUR 7.6 million during the same period last year. Net sales decreased especially in the automotive and telecommunications segments. The five largest customers for the company accounted for 42% of the net sales, compared to 58% last year. In geographical terms, 90% of net sales were generated in Europe and 10 stemmed from other continents. The operating result for the first quarter amounted to EUR -0.4 million, down from EUR 0.9 million during the first quarter of 2019. The operating result was burdened by the decline in net sales and the weakening of the product range, as it became more difficult to carry out quick-turn deliveries in the prevailing conditions caused by the coronavirus pandemic. The order book grew by 67% compared to the previous year. The order book at the end of the review period was EUR 5.6 million, representing a year-on-year increase of EUR 2.2 million. “Net sales for the first quarter weakened significantly in the supply chains of the electronics industry due to disruptions caused by the coronavirus pandemic. Demand soon recovered a robust level already in March, but this in itself was not enough to compensate for weak profitability at the beginning of the year, and the operating result remained unprofitable,” says CEO Mikko Montonen in the first quarter report. The company says that the outbreak of the COVID-19 pandemic will affect the availability and delivery times of the circuit boards purchased by Aspocomp from China. The pandemic is also having a profound impact on the supply chains of the electronics industry and on customer orders. The European car industry is in an especially difficult position. Due to the major uncertainties and growth in risks related to both customer demand and component availability, the outlook for 2020 involves a significantly higher risk than normal. “Despite a strong order book, our assessment of future developments includes exceptionally high uncertainty due to the coronavirus pandemic and its negative impact on the economy. Customer demand, operating conditions and requirements may weaken or fluctuate very rapidly. In spite of the major uncertainties and growth in risks, we estimate that 2020 our sales and operating result will be at the previous year’s level,” the CEO continues. In 2019, net sales amounted to EUR 31.2 million and the operating result to EUR 3.4 million.