Electronics Production | September 29, 2006
Perlos at risk in BenQ Mobile insolvency
Finland based EMS-provider Perlos estimates that the risk exposure regarding account receivables and inventories originating from the business with the German subsidiary amounts to approximately EUR 30 million.
BenQ announced yesterday that its German subsidiary BenQ Mobile GmbH & CO OHG is considering filing for insolvency protection. The company also announced that other subsidiaries in Brazil and other locations are reviewing their financial position. According to the announcement BenQ will continue its mobile phone manufacturing operations in Asia. BenQ is a significant customer to Perlos and a major part of the sales is to BenQ Mobile GmbH & Co OHG. Perlos estimates that the risk exposure regarding account receivables and inventories originating from the business with the German subsidiary amounts to approximately EUR 30 million. Investigations regarding other risks related to the business relationship are ongoing. Perlos has initiated actions to limit the risks and it will start investigations for adjusting operations. Perlos' expected sales to BenQ Mobile GmbH & Co OHG during the fourth quarter amounted to in excess of EUR 20 million. Perlos aims to publish further information at the latest by October 26, 2006, in conjunction with the publishing of the third quarter interim results.