HELSINKI -- PKC Group reported second-quarter revenue fell 12.3% year-over-year to  EUR 206.2 million.

Net profit fell 58% to EUR 2.6 million, while operating profit was down 58% to EUR 5.6 million.

PKC expects 2014 revenue will be lower than in 2013, when the EMS and wire harness company generated sales of EUR 884 million.

The company said it continues to face a market downturn in Europe and Brazil, and predicts truck production (heavy-duty and medium-duty) for the full year to stay well below last year’s figures. Full-year production volumes in North America, on the other hand, are predicted to top last year’s figures. Second-half production volumes are predicted to stay at the level of the first half in Europe and grow approximately 10% in North America. In Brazil political and economic uncertainty has increased. PKC’s customers in Brazil have indicated production volumes in second half to remain at the most on current level.

PKC is consolidating its wiring systems business in Europe and South America, which will entail moving more than half its production in Europe to Serbia and Lithuania by the end of 2016, and closing factories in Sosnowiec, Poland, and Haapsalu, Estonia, by the end of 2014. The Sosnowiec and Haapsalu factories employ about 900 persons.

PKC will also cut production in Itajuba, Brazil, by the end of 2014. That factory employs about 500 persons.

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