ST. LOUIS  -- Viasystems Group today reported third-quarter net sales at its Assembly segment were $42.8 million, down 18.3% from a year ago.

The operating loss was $3.3 million, versus operating profits of $800,000 a year ago. 

The results included a $3.6 million court judgment against a supplier in its Assembly segment during the period.

The firm's printed circuit board segment sales were flat over last year at $256.5 million. Operating income was up 28% to $7.3 million for the period ended Sept. 30. Sequentially, demand improved in the computer and datacommunications end-market but declined in each of the company’s other markets.

Overall net sales were $299.3 million in the quarter, down 3.2% year-over-year. The operating loss was $1.1 million, including one-time charges of approximately $5 million for costs incurred in connection with its pending merger with TTM Technologies, and approximately $6.8 million for restructuring costs and fixed asset impairments in connection downsizing at its Juarez factory.

David Sindelar, chief executive of Viasystems, said, "We had to overcome several challenges, including a temporary work stoppage by employees in our largest factory in China, a sudden downturn of demand for products assembled in our Juarez factory, and a temporary disruption in the supply chain for certain raw materials used to produce our printed circuit boards. While I believe we have already taken all the actions needed to resolve these issues, each of these challenges had adverse impacts on our net sales and our earnings during the quarter.”

The firm saw lower demand in the industrial & instrumentation, telecommunications, and computer and datacommunications end-markets, in part offset by improved demand from automotive, and military and aerospace customers.

Viasystems is working on obtaining governmental and other regulatory approvals required for the proposed merger, which should close next year.

In October the company accepted a final insurance claim settlement offer of RMB162.6 million ($26.6 million), which together with previous interim settlement proceeds, increased the total claim proceeds value to RMB202.7 million ($33.1 million)for claims for damages incurred during and after a 2012 fire at its Guangzhou, China factory. 

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