Aspocomp's net sales continued to increase
The Finnish PCB manufacturer says that its net sales continued to increase during the third quarter of 2022, its operating result improved further and the order book also remained strong.
Aspocomp recorded net sales of EUR 10.4 million during the third quarter of 2022, an increase of 16% from EUR 9.0 million during the same period last year. The company's operating result for the period amounted to EUR 1.4 million, up from 1.0 million during last year. Orders received during the third quarter amounted to EUR 9.5 million, a decrease of 32% from EUR 13.9 million during the third quarter last year.
Looking at the first nine months of 2022, net sales amounted to EUR 29.0 million, an increase of 29% from EUR 22.4 million during the same period in 2021. The operating result for the first nine months was EUR 3.8 million. Orders received during this period amounted to EUR 32.1 million, a decrease from EUR 33.8 million during the comparable period. Order book at the end of the review period amounted to EUR 19.6 million, an increase of 24% from EUR 15.8 million during the same period in 2021.
The company states in its third quarter report that it expects demand to improve in all customer segments. However, a global shortage of components may limit growth in customer demand. Russia’s war of aggression against Ukraine and the sanctions imposed against Russia are not expected to have any direct impact on Aspocomp’s business.
“The Semiconductor Industry continued to be the engine of growth in third-quarter net sales, as large investments in chip capacity in different parts of the world boosted the demand for printed circuit boards. In the Telecommunication segment, the usual lull in customers' product development work during the holiday season reduced net sales. Net sales in Security, Defense and Aerospace grew moderately, but measured by the number of requests for offers and product evaluations, the segment’s quarter was quite active,” says Mikko Montonen, President and CEO of Aspocomp, in the report.
The CEO continues to state that increased inflation is reflected in Aspocomp’s costs, such as raw material purchases and energy.
“Even though we have always hedged our electricity pricing, the current situation is challenging in terms of our cost structure. We will continue to try to transfer the cost increases due to changes in the business environment to product prices.”
The COVID-19 pandemic and the current geopolitical situation have increased the risks related to the company's customers’ global supply chains.
“Customers in all our segments are increasingly looking for manufacturers for their more technologically demanding circuit boards from places other than Asia. Our strategic investments to increase the technological capabilities and manufacturing capacity of our factory in Oulu are now bearing fruit,” Mikko Montonen concludes.
The company reiterates its previously announced estimates that its net sales for 2022 will increase, as will its operating result. During 2021, net sales amounted to EUR 33.2 million and the operating result to EUR 2.2 million.