Scanfil delivers solid performance during 2020
2020 was an exceptional year, but despite the challenges the EMS provider saw customer demand pick up towards the end of the year which ultimately resulted in a solid year.
The company’s fourth quarter turnover totalled at EUR 154.1 million, more or less at the same level as during the fourth quarter 2019 of EUR154.7 million. Adjusted operating profit (which contains a total of EUR -6.1 million of adjustments tied to the shutdown of the German factory) amounted to EUR 10.4 million, compared to EUR 10 million during the same period last year. Operating profit for the fourth quarter was EUR 4.3 million, compared to EUR 10.0 million. Net profit ended up at EUR 3.1 million, down from EUR 9.8 million during the last quarter 2019. "The turnover for the fourth quarter was EUR 154.1 million. The growth was mainly driven by the Medtec & Life Science, Energy & Automation and Consumer Applications customer segments. Also, demand among several customers, affected negatively by the Covid-19 pandemic earlier in the year, recovered during the fourth quarter,” says CEO Petteri Jokitalo in a press release. For the full year, the company’s turnover totalled at EUR 595.3, an increase of 2.7% from 579.4 during 2019. Adjusted operating profit (containing the costs from the shutdown of the factory of Germany as well as sales gains of EUR 11.4 from the Chinese subsidiary) amounted to EUR 39.1 million, a decrease of 0.7% from EUR 39.4 million. Full year operating profit EUR 44.4 million, compared to 35.3 million in 2019. Net profit for the review period was EUR 36.9 million compared to EUR 28.1 million in 2019 “The year 2020 was an operationally strong year for Scanfil despite exceptionally challenging circumstances and proof of Scanfil's personnel's capability and the flexibility of the company cost structure. Covid 19 pandemic shaped the year, and the operative focus stayed on employees' safety and ensuring customer deliveries continuity,” the CEO continues. The sale of the company’s Hangzhou factory was realized in July, which means that Scanfil's focus in China now lies on the manufacture of electronics and integrated products at the Suzhou factory. In December, the company decided to close its Hamburg factory and continue its production at other Scanfil factories in Germany and Poland. Production is expected to be transferred, and the plant to be closed, by the end of the third quarter of 2021. The arrangement is expected to result in annual cost savings of approximately EUR 2.5 million. “Our long-term target for 2023 is to achieve a turnover of EUR 700 million and an operating profit rate of 7%. We are also actively investigating acquisition opportunities, especially in the Nordic countries and Central Europe,” the CEO says.