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Note Takes Q1 Profit Hit on Charges |
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Written by Mike Buetow
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Friday, 18 April 2008 |
DANDERYD, SWEDEN – Note AB reported first-quarter sales rose 0.5% to SEK 427.3 million, while net profits fell 53% to SEK 5.7 million.
For the March quarter, the operating profits fell 44% to SEK 13.8 million on a SEK 10 million restructuring charge. The EMS company turned in an operating margin of 3.2%, down from 5.8% last year. Cash flow from operations was SEK 24 million, down from SEK 45.6 million.
During the quarter, Note continued to transfer production to lower-cost countries and cut its headcount in Sweden by more than 150, or roughly 20% of its local workforce. The firm employs 1,200 workers globally.
The company also purchased Nearsourcing Centre in the UK, and acquired a domestic mechanical engineering services group.
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