SON, THE NETHERLANDS -- Neways said third-quarter sales were essentially flat year-over-year but that a fourth quarter decline is likely.

The electronics manufacturing services provider reported third-quarter sales rose EUR 300,000 to EUR 69.5 million. The fourth quarter outlook is cloudy, however, given caution among clients noted in the past 45 days.

Based on the adjusted forecast for the fourth quarter, 2012 sales will be well below those of 2011, and the company expects to book a loss in the fourth quarter, which is likely to lead to a substantial drop in net profit for the full year 2012.

Bookings remain relatively stable, the company said, an indication that most orders planned for the final months of 2012 have been postponed. The order portfolio stood at EUR 66 million as of Sept. 30, down roughly 3% from June 30.

The diminished near-term forecast lowered third-quarter profit, and Neways has made various organizational changes its subsidiary in Kassel and will lay off 70 to 80 flex workers in order to cut costs.

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