Electronics Production | February 20, 2007

Scanfil decrease revenue in 2006

Finland based EMS provider Scanfil Group's turnover in 2006 was EUR 241.4 (321.6) million, representing decrease of 25% over the previous year.
Distribution of turnover based on the location of customers was as follows: Finland 43 (42)%, rest of Europe 29 (40)%, Asia 25 (12)%, USA 1 (6)% and the others 2 (0)%

Operating profit for the review period totalled EUR 11.4 (27.3) million, representing 4.7 (8.5)% of turnover. Net profit amounted to EUR 8.2 (21.5) million, or 3.4 (6.7)% of turnover. Earnings per share amounted to EUR 0.14 (0.36) and return on investment was 9.0 (18.6)%.

For the first quarter of 2006 has been recorded the non-recurring expense item of EUR 7.6 million, relating to the discontinuation of the Belgian subsidiary's production activities. In the third quarter a
fund reimbursement related to the voluntary group pension insurance and the unused part of a cost provision related to material liability, totalling EUR 0.8 million, were recognised as income.

In the final quarter, EUR 0.8 million was recognised as income related to the calculation of fair value according to IFRS. EUR 0.8 million of capital gains from sale of fixed assets were recorded, the main part of which was recognised as income in the fourth quarter and was generated from the sale of the fixed assets of the Belgian subsidiary.

In addition, an expense item of EUR 0.4 million was entered as a warranty provision at the end of the year. Operating profit excluding non-recurring items totalling EUR 5.6 million stood at EUR 16.9 million, representing 7.0% of turnover, and earnings per share was EUR 0.23.

In the parent company an impairment of EUR 2.6 million was entered for the shares of the Belgian subsidiary. Owing to the structure of the company's operations, the effects of changes in exchange rates on the result were minimal. As growth shifts to the Asian operations, the impact of fluctuations in the dollar exchange rate on the company's operations may increase.

The expansion of the production facilities in the Estonian subsidiary was completed and taken into use during the final quarter, and the expansion of the Hungarian subsidiary will be taken into use during the first quarter of 2007. Thanks to the facility and equipment investments carried out in the Chinese Hangzhou subsidiary during the year, the plant is capable of delivering significant volumes of integrated and tested telecommunications technology enclosure systems. The Chinese subsidiaries accounted for about 32% of the Group's sales (about 20% in 2005), including sales to the Group's other plants.

On 31 December 2006, 70 (62) per cent of the company's personnel worked in foreign subsidiaries and 46 (37) per cent in China. The proportion of people working in Europe of the entire personnel
contracted during the year, due to the reorganisation of production implemented in Finland and Belgium. During the review period, the company carried out statutory employer-employee negotiations in the Sievi mechanics plant, the Oulu plant and the Belgian subsidiary, Scanfil N.V.


Please note the following: Critical comments are allowed and even encouraged. Discussions are welcome. Verbal abuse, insults and racist / homophobic remarks are not. Such comments will be removed.
Further details can be found here.
Load more news
May 11 2018 10:46 am V9.5.4-2