SIEVI, FINLAND -- Scanfil reported June quarter sales of 52.8 million euros ($57.8 million), down 12.9% from a year ago.

The EMS company's operating profit fell by more than half to EUR 2.3 million, excluding nonrecurring charges of 3 million euros.

The net profit for the period ended June 30 was 1.7 million euros.

Sales rose in the medtech, life science and environmental measurement sectors, boosted by the acquisition of Schaltex in 2014. Demand was up for energy and automation and fell in networks and urban applications. 

Scanfil updated its sales and operating profit guidance to reflect its pending acquisition of PartnerTech. The EMS company now estimates 2015 sales will be 350 million to 365 million euros, with operating profits before nonrecurring items of 14 million to 18 million euros.

In a press release, CEO Petteri Jokitalo said, "Turnover for the first two quarters, especially the second quarter, fell short of the year before, as was expected. Reasons for this include the demand of one major customer which will, unlike earlier years, focus on the second half of the year. Volume deliveries to the customer are already about to commence and there are clear signs of a more general recovery in demand.

Jokitalo said the acquisition of PartnerTech will make Scanfil the leading EMS contract manufacturer in the Nordic countries and a significant player on a global scale. Combined sales of the current businesses of the companies for 2014 amounted to approximately 460 million euros ($503.4 million).

"By uniting our forces with PartnerTech, we will significantly expand our global customer base, plant network and service portfolio. The companies' strategies are aligned and the purchase will provide us with access to the US market and allow us to expand into the extremely interesting Guangzhou technology hub area in China, among other things. We believe that the merger will rapidly benefit our customers, employees and shareholders.

"The takeover and integration process has already begun, and it will continue during the second half of the year. Our aim is to integrate the companies, realize the synergy benefits and improve the profitability of the purchased businesses to a sustainable level over the next two years.

Scanfil also announced investments of 2.2 million euros in sheet metal fabrication at its Sievi plant. 

1 EUR = 1.09440 US$

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