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Scanfil's Results of Restructuring Already Visible in Profitability
October 26, 2016 | ScanfilEstimated reading time: 3 minutes
Highlights:
July – September
- Turnover totalled EUR 121.7 million (Q3 2015: 135.8), down 10.3%
- Operating profit EUR 7.4 million (5.2), 6.1% (3.9%) of turnover,
adjusted operating profit* EUR 7.6 (8.6) million, 6.2% (6.4%) of turnover
- Profit was EUR 6.5 million (2.8)
- Earnings per share amounted EUR 0.11 (0.05),
earnings per share without adjustment items* EUR 0.11 (0.10)
January – September
- - Turnover totalled to EUR 385.7 million (1-9/2015: 234.5), up to 64.4%
- - Operating profit EUR 4.0 million (10.2), 1.0% (4.3%) of turnover,
- adjusted operating profit* EUR 17.2 (14.4) million, 4.5% (6.2%) of turnover
- - Profit for the review period was EUR -1.2 million (7.2)
- - Earnings per share were EUR -0.02 (0.12),
earnings per share without adjustment items* EUR 0.20 (0.19)
Pro forma comparison January–September
- Turnover 1–9/2016: EUR 385.7 (1–9/2015 pro forma: 372.4) million, up 3.6%
- Operating profit excluding adjustments 1–9/2016: EUR 17.2 (1–9/2015 pro forma: 13.4) million, up 28.7%
The pro forma comparison figures have been calculated to illustrate a scenario in which Scanfil plc and PartnerTech AB were merged on 1 January 2015.
Future Prospects
Scanfil specifies its estimate of its turnover and operating profit in 2016, estimating that the turnover will be EUR 500–520 million and the operating profit before adjustments will amount to EUR 22 – 25 million.
Previously, Scanfil estimated that its turnover for 2016 would be EUR 500–550 million and the operating profit before adjustments would amount to EUR 22–28 million.
Petteri Jokitalo, CEO of Scanfil plc:
"I am pleased with our profitability in the third quarter. The operating profit of 6% shows that the restructuring and efficiency measures we have taken can already be seen in our result. We have concentrated on our profitable businesses, and our cost structure is significantly lighter. We will continue to challenge our current ways of operating as well as our cost structure. We target to achieve even more agile operating model and lower fixed costs.
January–September turnover was EUR 386 million. The growth in pro forma turnover was 3.6% year-on-year. During the third quarter, customer demand decreased in general, and the market situation was and continues to be challenging.
The integration of companies, elimination of overlapping activities as well as the restructuring of unprofitable factories proceeded according to plans. The Dongguan plant in China was closed down, and the statutory labor negotiations to adjust Vantaa plant's operations were started."
Financial Development
The Group’s turnover for January - September was EUR 385.7 (234.5) million. The breakdown of turnover by regional segment was as follows: Europe and USA 79% (69%), Asia 21% (31%).
The Group's operating profit for January – September was EUR 4.0 (10.2) million, representing 1.0% (4.3%) of turnover. Adjusted operating profit was EUR 17.2 (14.4) million, representing 4.5% (6.2%) of turnover. The operating profit for the period under review includes adjustments of EUR 13.2 million, consisting of the restructuring and reorganisation costs of the plant network related to the divestment and the closure of subsidiaries with low profitability. The adjustments for the previous year consisted of costs related to the acquisition of PartnerTech AB and an impairment related to the Hungarian operations, totalling EUR 4.0 million.
The result for the period was EUR -1.2 million (7.2 million), and the result before adjustment items was EUR 12.5 (11.4) million.
The Group's turnover for July–September amounted to EUR 121.7 (135.8) million and operating profit was EUR 7.4 (5.2) million, or 6.1% (3.9%) of turnover. The third quarter includes a total of EUR 0.1 (3.4) million of adjustments. Operating profit excluding adjustments was EUR 7.6 (8.6) million, representing 6.2% (6.4%) of turnover.
Earnings per share were EUR -0.02 (0.12) for the period under review, and earnings per share excluding adjustments were EUR 0.20 (0.19). The return on investment was 4.1% (10.3%).
About Scanfil
Scanfil is an international contract manufacturer and system supplier for the electronics industry with 40 years of experience in demanding contract manufacturing. Scanfil provides its customers with an extensive array of services, ranging from product design to product manufacturing, material procurement and logistics solutions. Vertically integrated production and a comprehensive supply chain are the foundation of Scanfil’s competitive advantages: speed, flexibility and reliability.
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