OULU, FINLAND – PKC Group reported fourth-quarter net sales of EUR 242 million, up 163.2% year-over-year.

Consolidated operating profit totaled EUR 8.8 million, down 10.2% compared to the same period in 2010.

The company’s electronics business net sales decreased 17.4% to EUR 17.5 million, on lower demand for telecommunication devices. Electronics segment results were further burdened by costs related to production transfers from Finland to more competitive production facilities. For the period, electronics made up 7.2% of sales, compared to 23% in the prior year.

PKC’s full-year 2011 consolidated net sales grew 74.1% over 2010 to EUR 550.2 million. Profits rose to EUR 23.4 million, up 18.8% year-over-year. Consolidated operating profit was EUR 34.5 million, up 16.2% year-over-year. Net sales generated by the electronics business increased by 1% to EUR 73.0 million for 2011. The segment’s share of consolidated net sales was 13.3% compared to 23.3% the previous year.

“PKC Group’s net sales increased about 74% on the previous year and profit before non-recurring items about 33%. Net sales increased both organically and through corporate acquisitions. The result of the 2011 financial year was burdened by non-recurring costs of about EUR 7.5 million, EUR 7.1 million of which were costs of advisory services related to acquisitions,” said president and CEO Harri Suutari. 

Demand for products of PKC Group’s key industrial electronics customers increased during the first half, but turned down during the second half, the firm says. The weakening was a result of growing economic uncertainty in Europe and a reduction in wind power investments globally.

As a result of a change in the product strategy of a telecommunications customer, demand for PKC Group’s electronics business design and manufacturing services was significantly smaller than the previous year.

EUR 1 = US$1.3108

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