ST. LOUIS -- Viasystems Group reported second-quarter sales in its Assembly segment were $43.7 million, up 21.3% sequentially, on strong demand in telecommunications.

For the period ended June 30, the firm reported net income of $7.1 million. Overall net sales grew to $239.4 million, up 28.3%  sequentially and 98.6% from 2009. Operating income improved to $18.6 million, up from $2.5 million in the first quarter, while adjusted EBITDA increased to $37 million, up 38.2% sequentially. The book-to-bill ratio was 1.06:1.

Printed circuit board sales were up 30% over the first quarter to $195.7 million, boosted by the Merix acquisition. Organic sales grew nearly 2% sequentially in the segment on continued strength of demand in the automotive, telecommunications and industrial end-markets.

Automotive and telecom make up 35% and 25%, respectively, of the company's sales.

"Sustained strong demand from our broad base of customers contributed not only to another quarter of sequential sales growth, but also to our improved profitability," said CEO David M. Sindelar. "And, having completed the majority of our remaining synergy projects during the quarter, we were able to achieve a partial offset of the increasing costs of materials and labor which we began to experience earlier this year.”

“Our telecommunications sector demand in the quarter appears to be well above the prevailing market advances following a modest start to the year, while the significant growth experienced in our automotive and I&I sectors earlier this year have now leveled to sustainable growth trends. We have begun seeing longer term orders populate our backlog."

Component shortages are putting pressure on materials costs and may limit growth in the near-term, he said.

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