MALMO, SWEDEN -- PartnerTech's contract electronics manufacturing unit saw "good growth" but the company's overall sales dipped 5.9% year-over-year in the second quarter.

The firm reported a net loss of SEK 28 million on sales of SEK 540 million. The operating loss was SEK 9 million, a swing from a profit of SEK 3 million, as restructuring costs amounted to SEK 22 million. Cash flow after investments was SEK -28 million

"During the quarter orders from our larger defense customers have continued to decrease. We have therefore initiated a major restructuring program in order to increase profitability in the Metal Precision Technology division," said Leif Thorwaldsson, president and CEO. "The electronics division shows continued good growth. ... We have signed contracts with new customers while volumes from existing customers have grown.

"[W]e are continuing to focus on non-defense segments such as Oil&Gas where there is great interest. Although there is great potential for us in this market, we are not yet able to compensate for the loss of volumes from defense customers," he added.