With Sales Slipping, PartnerTech Has Plants Closings, Layoffs Ahead PDF Print E-mail
Written by Mike Buetow   
Friday, 25 January 2013 09:57

VELLINGE, SWEDEN -- PartnerTech today lowered its revenue and profit guidance for its fourth quarter, citing postponed or sharply decreased volumes from a number of customers. The company is instituting a series of plant consolidations and layoffs as a result.

The Top 50 EMS company said it would report a 15% decline in volume for the quarter versus the same period 2011, which is lower than expected. At the same time earnings are negatively impacted by the costs of adaptation of the operations in our Nordic units.

The contract assembler said its operating profit would likely be negative, but added that its full year operating profit would be about SEK 20 million to 25 million ($6.5 million).

"The very strong fluctuations in several market areas in December showed that we still have work to do in order to increase our flexibility as we were not able to adapt our operations fast enough," said Leif Thorwaldsson, president and CEO.

The company said while its manufacturing operations in Poland and China are attracting new customers, it needs to better align its Nordic operations to customer needs for technology and product development.

In Norway, the company plans to exit leases on two factories, while in Sweden PartnerTech will relocate its unit in Vellinge to Malmö. The company also will layoff an undisclosed number of employees in many units.

 

Last Updated on Friday, 25 January 2013 10:13
 

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