-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueThe Growing Industry
In this issue of PCB007 Magazine, we talk with leading economic experts, advocacy specialists in Washington, D.C., and PCB company leadership to get a well-rounded picture of what’s happening in the industry today. Don’t miss it.
The Sustainability Issue
Sustainability is one of the most widely used terms in business today, especially for electronics and manufacturing but what does it mean to you? We explore the environmental, business, and economic impacts.
The Fabricator’s Guide to IPC APEX EXPO
This issue previews many of the important events taking place at this year's show and highlights some changes and opportunities. So, buckle up. We are counting down to IPC APEX EXPO 2024.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - pcb007 Magazine
NCAB Group Reports 14% Growth in 2Q Net Sales
July 30, 2019 | NCAB GroupEstimated reading time: 2 minutes
NCAB Group has reported net sales of SEK 473 million for the second quarter of 2019, up by 14% year-on-year. For the first half of the year, net sales increased by 16% to SEK919 million.
“It was a good quarter for NCAB despite raised tariffs. There was a somewhat weaker growth in the quarter in both sales and order intake, however earnings remained strong—up 17% year-on-year,” said NCAB’s CEO Hans Ståhl. “The higher tariffs from China to the USA not only impacted our US operations but also parts of our sales in China whose final destination is the USA. To mitigate this, we have—among other actions—partnered with a Taiwanese manufacturer for the US market in order to offer American customers import without tariffs. Thanks to our strong purchasing power, we also succeeded in reducing prices from our factories, which should strengthen our competitiveness moving forward.”
There was a somewhat weaker growth for NCAB in the second quarter of 2019 in both sales and order intake. According to Ståhl, order intake increased by 10%. “Our US operations are, of course, impacted the most and if we exclude North America, order intake increased 16% compared with the second quarter of 2018,” he said.
Earnings remained strong, up 17% year-on-year and an adjusted EBITA margin of 7.9%.
“Of our segments, Nordic is continuing to deliver healthy growth and high margins. Growth of 25% was mainly driven by Norway, which performed strongly, and the acquisition of Multiprint in Denmark. The high margin declined slightly due to the change in the mix between the countries,” said Ståhl. “Growth in Europe was 12% and the EBITA margin is continuing to increase and is now at more than 6%. This is quite good given that the Europe segment comprises many newly started companies in which we are investing for growth. Our largest companies, such as the ones in Germany and the UK, performed strongly, while we saw a more cautious approach from customers in other countries like France and Spain.”
The performance of the East segment, which includes Asia and Russia, was favourable for the quarter, despite a certain setback in China due to the higher tariffs to the USA. Reported growth was 26% and the EBITA margin was 10.6%.
“We saw a clear break in the trend in the North America segment when the 25% tariffs were introduced in May. Sales declined by more than 20% in USD in the quarter. It is clear that our customers are delaying their orders and hope that tariffs will at least return to 10%,” said Ståhl. “All in all, we are seeing a somewhat cautious approach from some of our customers in Europe and in North America, although it is difficult to say whether this is a temporary situation or the start of a weaker market. It is clear that the trade war between the USA and China is reducing buying pressure in many more countries.”
To mitigate this, the company has been intensifying its focus on sales. It also partnered with a Taiwanese manufacturer for the US market in order to offer American customers import without tariffs. “We also continuously scrutinize our cost base to ensure that we employ the right resources in the right places. Thanks to our strong purchasing power, we also succeeded in reducing prices from our factories, which should strengthen our competitiveness moving forward,” said Ståhl.
Suggested Items
Micron First to Ship Critical Memory for AI Data Centers
05/01/2024 | MicronMicron Technology, Inc. announced it is leading the industry by validating and shipping its high-capacity monolithic 32Gb DRAM die-based 128GB DDR5 RDIMM memory in speeds up to 5,600 MT/s on all leading server platforms.
HQ NextPCB of HQ Electronics Debut on the International Stage for Electronics Manufacture at IPC APEX 2024
05/01/2024 | PRNewswireHQ NextPCB of HQ Electronics, a leading Chinese-based multilayer PCB manufacturer and assembly house showcased its industrial prowess on the international stage for the first time at the IPC APEX Expo 2024.
GPV’s Q1 2024 Interim Financial Report Shows Strong Navigation in Uncertain Times
05/01/2024 | GPVDanish-based GPV recorded an expected drop in sales to DKK 2.3 billion for the first quarter of 2024. The decline also affected the operating profit, which was DKK 155 million compared to DKK 179 million in the same quarter last year, although the EBITDA margin was maintained. In general, demand has been softer in 2024, but GPV continues to invest for the long-term and expects the trend to turn in the second half of 2024.
The Knowledge Base: A CM’s Perspective on Box Build Practices
04/30/2024 | Mike Konrad -- Column: The Knowledge BaseIn the ever-evolving landscape of electronics manufacturing, the box-build process stands out as a critical phase that bridges the gap between individual component manufacturing and the delivery of a fully functional electronic system. This intricate procedure, encompassing the assembly of everything from PCBs to wire harnesses and mechanical enclosures, demands a high level of precision, efficiency, and innovation. As the electronics assembly industry expands and diversifies, understanding the best practices within box-build assembly has become paramount for manufacturers aiming to stay ahead in a competitive market.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/26/2024 | Andy Shaughnessy, Design007 MagazineIn this week’s roundup, we have a variety of articles covering everything from design through assembly, and even box build. I’ve always wondered whether box build was all it was cracked up to be. Do customers really pick one EMS provider over another because one company offers box build? And if you’ve ever wanted to volunteer, IPC’s Thought Leaders Program is looking for a few good technologists to help them on their mission. Check out Stanton Rak’s article, which was published in the spring issue of IPC Community.