Component shortages affected Teleste's result
“Orders received and net sales in the second quarter increased year-on-year, but the adjusted operating result was significantly lower than in the comparison period,” says Telestes CEO Esa Harju in the quarter report.
Orders received in the second quarter totalled EUR 46.8 million, representing a year-on-year increase of 6.7% from EUR 43.9 million. The order backlog grew by 65.2% to a record-high level of EUR 139.1 million. Net sales increased by 7.2% to EUR 38.4 million compared to 35.8 million during the same period last year. Net sales increased in public transport information solutions, video security solutions and access network products.
The operating result was EUR 0.2 million, down by 83.0% from 1.1 million during the second quarter last year. The company says that the operating result decreased due to higher material expenses and other operating expenses. Result for the period amounted to EUR -1.5 million, a decrease from 0.8 million during the same period 2021.
”Our operating environment became even more challenging during the second quarter, especially due to the effects of the component crisis. Our delivery volumes and particularly the profitability of our operations have been affected by the longer delivery times of materials and components, the logistics problems in Asia, the increased uncertainty in the availability of components, delivery changes requested by customers, and the still-rising prices of components. We have managed to avoid production shutdowns partly through expensive broker purchases and by significantly increasing our buffer stocks. High inflation is also increasing all operating expenses,” says Esa Harju.
Teleste estimates that net sales in 2022 will reach the level of net sales of 2021 and that the adjusted operating result in 2022 will remain significantly below the adjusted operating result of 2021. Net sales in 2021 were EUR 144.0 million, and the adjusted operating result was EUR 5.5 million.