SIEVI, FINLAND – Scanfil reported third quarter sales fell 5% year-over-year to $70 million and operating profits dropped 7% to $6.5 million.

Year-to-date revenues totaled $205 million, down 3% from 2007. Operating profits rose 26.7% to $20.8 million. Net profits were up 25% to $16.8 million.

The dip in demand resulted softness in telecommunications. The EMS company said industrial electronics volumes were “at a good level” during the quarter. Telecom makes up about 62% of the company’s sales, while industrial electronics accounts for 38%.

The company’s China subsidiaries accounted for 36% of its overall sales. During the quarter, Scanfil began a 70,000 sq. ft. expansion to its Hangzhou production facilities.

Scanfil is Scandanavia’s second largest EMS provider, behind Partnertech of Sweden.