HELSINKI -- PKC Group today lowered its operating income outlook due to weaker than estimated profitability at the contract assembler's Brazil unit.

Operating losses will increase due to "sizable" payments related to a new collective bargaining agreement demanded from automotive companies in Curitiba, the company said.

PKC's new 2013 outlook, excluding nonrecurring items, is lower than its 2012 level. The company left its full-year net sales estimate unchanged.

In 2012 PKC’s net sales were EUR 928.2 million and comparable operating profit excluding nonrecurring items was EUR 51.5 million.