© Scanfil Electronics Production | October 27, 2020
Scanfil CEO: ‘I am pleased with our solid performance’
The third quarter of 2020 has been a busy one for Scanfil. The company proceeded with its optimisation of its factory network which has resulted in the divestment of the Hangzhou factory. And in Hamburg, the negotiations with employees were stated concerning a potential closure.
During the company’s third quarter a turnover of EUR 141.6 million was recorded, a 7% decrease from EUR 152.3 million during the same period last year. Operating profit amounted to EUR 21.2 million during the company’s third quarter, an increase of 76.1% from EUR 12.1 during the same period last year. However, the operating profit includes a non-recurring capital gain from the sale of Hangzhou factory of EUR 11.4 million, so the adjusted operating profit, excluding the sale of the Hangzhou factory, amounted to EUR 9.9 during the quarter, a decrease of 18.1% compared with EUR 12.1 million. Net profit for the period was EUR 18.0 million compared with EUR 8.8 million. “I am pleased with Scanfil's solid performance in the third quarter. We succeeded well in our COVID-19 countermeasures, and our profitability development was strong in exceptional circumstances,” says CEO Petteri Jokitalo in the quarter report. “We also proceeded as planned in the transformation of our factory network: the Hangzhou factory was divested in July. In Hamburg, the negotiations were started with the personnel concerning the factory’s possible closing and continuing operations at other Scanfil factories.” The CEO continues to explain that the company’s turnover mainly decreased in the Industrial and Consumer Applications segments. “July and August were quiet, while demand started to pick up in September. The delivery capacity of the supply chain set no significant restrictions on our deliveries.” At the end of the third quarter, Scanfil had around EUR 20 million in cash assets and an unused credit facility of around EUR 56 million. “Our outlook for the rest of the year has been specified and we estimate the turnover for 2020 will be EUR 590 – 610 million and adjusted operating profit EUR 38 – 40 million. Our estimate is based on our customers' current demand forecasts,” the CEO says.