Aspocomp's net sales declined in almost all segments
The Finnish PCB manufacturer is reporting of a quarter where the pandemic was still making its mark on the company's business.
First quarter net sales amounted to EUR 6.2 million, a year-on-year decrease of 7% from EUR 6.7 million. Net sales declined steadily in almost all customer segments, except for Industrial Electronics, which grew by 22%. The five largest customers during the period accounted for 48% percent of net sales. In geographical terms, 87% of net sales were generated in Europe and 13% outside of Europe. The operating result for the first quarter amounted to EUR -0.5 million, compared to -0.4 during the same period last year.. First-quarter operating result was -8.0% of net sales. The company says that the operating result was burdened at the beginning of the year by the low net sales level and unfavourable product mix and as well as increased maintenance costs at the Oulu plant. The order book at the end of the review period was EUR 5.3 million. Aspocomp says in the quarter report that due to the COVID-19 pandemic and the resulting decline in general demand, as well as for financial reasons, some customers had to postpone or even cancel their orders. Asian PCB mass suppliers have had overcapacity due to the weaker market situation, which has allowed them to exceptionally respond to changing customer needs. The company’s production at the Oulu plant has however continued normally and delivery capacity has been reasonable. Aspocomp has continued to invest in new capacity and increased its product development investments in new products and more challenging technologies. “Demand for PCBs was weak as expected in the first quarter, which is typically the quietest quarter of the year. The net sales for January-March amounted to EUR 6.2 million, a year-on-year decrease of about 7 percent. The decline in net sales was steady in almost all customer segments, with only the Industrial Electronics segment swinging to growth of 22 percent. Customer prospects and purchases clearly picked up towards the end of the quarter, as companies began to prepare for growth in demand when COVID-19 pandemic restrictions will be eased. The growth expectations of the electronics industry are also reflected in the difficult availability of raw materials and semiconductor components and the significant increase in delivery times,” says president and CEO Mikko Montonen, in the report. The company is expecting demand to improve in all customer segments, at the same time a global shortage of components may hinder positive developments. The company’s full-year guidance remains unchanged. Aspocomp estimates that its net sales for 2021 will increase and its operating result for 2021 will improve from 2020. In 2020, net sales amounted to EUR 25.6 million and the operating result to EUR -0.1 million.