© Aspocomp PCB | August 12, 2020
The effects of the pandemic burdens Aspocomp's net sales
Sales decreased in the Telecommunications, Automotive and Industrial Electronics segments; three strong pillars for the Finnish PCB manufacturer. However, in other segments the company did manage to expand and grow its customer base and product offering.
Second-quarter net sales for the Finnish PCB manufacturer amounted to EUR 7.1million, a year-on-year decrease of 18% from EUR 8.7 million during the same period last year. The company says that the decrease is very much connected to the COVID-19 pandemic and the following weakening of general demand. Some of Aspocomp’s customers have had to postpone or even cancel their orders due to uncertainty in demand and declining results. Looking at the net sales through a geographical lens, 80% (compared to 98%) were generated in Europe and 20% (compared to 2%) on other continents. The operating result for the second quarter amounted to EUR 0.3 million, compared to EUR 1.4 million. The operating result was burdened by the decline in net sales. Also, increased product development investments in the growing Security, Defense and Aerospace segment weakened the result, the company says. In the Telecommunications segment, the demand for product development series decreased clearly compared to the strong comparison period. In the Automotive industry, demand continued to decline as customers reduced their inventory levels to match the low demand caused by the COVID-19 pandemic. The weakening of the Industrial Electronics segment is due to the general market situation, as companies are reducing their investments. “Due to the COVID-19 pandemic and the resulting decline in general demand, as well as for financial reasons, some customers have had to postpone or even cancel their orders. Asian PCB mass suppliers have had overcapacity due to the weaker market situation, which allowed them to exceptionally respond to changing customer needs. In the Automotive segment, demand has continued to decline as customers have reduced their inventory levels in line with the slowdown in demand caused by the pandemic,” says president and CEO Mikko Montonen, in the report. He continues to say that despite the COVID-19 pandemic, Aspocomp has been able to expand and grow its customer base and product offering. In the Security, Defense and Aerospace segment as well as in the Semiconductor Industry segment, demand has almost doubled despite the weak market situation. The company’s production at the Oulu plant has continued normally and delivery capacity has been good, and the company has continued to invest in new capacity The company’s full-year guidance remains unchanged. Aspocomp estimates that its net sales and operating result for 2020 will fall significantly short of 2019. In 2019, net sales amounted to EUR 31.2 million and the operating result to EUR 3.4 million