Aspocomp’s net sales dropped 30% in 1Q24
Aspocomp’s first-quarter net sales amounted to EUR 6.2 million, down 30% from EUR 8.9 million during the same quarter last year.
The Finnish PCB manufacturer says that the development of net sales was impacted especially by muted demand in the semiconductor industry and a weaker product mix than in the comparison period.
Looking at net sales in the company’s semiconductor industry customer segment we see that first-quarter net sales decreased year-on-year by 71% from EUR 3.7 million to EUR 1.1 million.
“Although the decline in net sales in the Semiconductor Industry customer segment was strong in the first quarter, market data indicates that its business cycle has already turned around,” says President and CEO Mikko Montonen, in a press release. “However, the positive development of the semiconductor market is not immediately reflected in PCB sales, as inventory levels are still high in various parts of Aspocomp’s customers' value chain.”
The CEO continues to say that when inventory levels gradually return to normal, the recovery of the semiconductor cycle is expected to be gradually in the demand for Aspocomp’s products as well.
Aspocomp’s five largest customers accounted for 58% of net sales. In geographical terms, 83% of net sales were generated in Europe and 17% on other continents.
The operating result for the first quarter amounted to EUR -1.6 million, compared with EUR 0.3 million during the same period last year.
The decline in the operating result was due to the decreased net sales caused by muted demand, the weakened product mix and the significant rise in material costs. Aspocomp also states that material costs were increased by a process disruption that continued from the fourth quarter of 2023.
Investments during the period amounted to EUR 0.2 million. The investments were focused on upgrading the capacity of the Oulu plant, improving automation, and increasing production efficiency.
“Inflation and interest rates, the economic recession, the uncertainties posed by Russia’s war of aggression and the situation in the Middle East, and global trade policy tensions will affect the operating environment of Aspocomp and its customers in the 2024 fiscal year. Demand for Aspocomp’s products is expected to recover gradually during 2024,” says Mikko Montonen.
