KEMPELE, FINLAND – PKC Group, a provider of contract assembly and wire harnesses, reported third-quarter profits rose 17.6 million euros, up 22% year-over-year.

Consolidated net sales in the September quarter grew 37.5% year-over-year to 308.2 million euros.

Net sales generated by the electronics business decreased 13.7% to 17.7 million euros. The segment generated an operating profit of 1.7 million euros, down 48.5% year-over-year, equivalent to 9.8% of the segment’s net sales.

“The fall in demand for the design and manufacturing services of PKC’s electronics business during the first nine months of the year resulted in a weakening of the whole segment’s turnover and profit in comparison with the previous year. However, profitability clearly improved during the third quarter from the level at the start of the year,” said Harri Suutari, president and CEO.

PKC said demand from the industrial sector rose in the first half but started to fall during the third quarter in both Europe and China. The weakening was a result of economic uncertainty in Europe and a reduction in wind power investments in China. New regulations introduced in China concerning wind power have temporarily reduced investments, the company said. Also, PKC’s electronics business was hurt by a change in product strategy by a telecommunications customer.

PKC also announced it has closed its acquisition of the AEES companies.

Euro 1 = US$1.3848

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