Scanfil reports robust demand and record-high turnover growth

The company is reporting third quarter turnover of EUR 167.8 million, an increase of 18.5% from EUR 141.6 million a year ago. Adjusted operating profit was EUR 9.5 million, up from EUR 9.9 million. Adjusted net profit amounted to EUR 6.8, compared with 7.5 million during the same period last year. Due to strong customer demand and increasing material prices Scanfil revised its outlook for 2021 on October 13. Scanfil now estimates that its turnover for 2021 will be EUR 670–710 million and its adjusted operating profit will be EUR 41–44 million. “Record-high turnover growth was boosted by robust customer demand and also rising material prices. Customer demand was especially strong in the product groups within energy efficiency, indoor climate, automation, recycling, and elevators,” says CEO Petteri Jokitalo in the quarter report. The CEO continues to say that the production transfer from Hamburg to Scanfil’s factories in Poland and Germany was finalised at end of September and production has thus ended in Hamburg. The company will continue to have a small team left in Hamburg until the end of the year to support the production in other factories and customer communications. “Material constraints were negatively impacting the operating profit in two ways: factories productivity decreased due to continuous changes in production based on material availability and ensuring required materials by more expensive spot market purchases, which the customers compensated for mainly on a no-margin basis,” Petteri Jokitalo continues. The negative impact on the quarter’s operating profit caused by material constraints and the Hamburg factory closure was about EUR 2 million. “We expect strong customer demand to continue for the remainder of the year. Key risks are related to the availability of certain materials, especially semiconductors, where we believe circumstances will continue to be challenging with no quick recovery in the foreseeable future. We need to consider the material situation as a new normal where deep co-operation with customers and suppliers make a difference. We are also confident that we can gradually increase our material margins back to the normal level,” the CEO concludes.