SIEVI, FINLAND -- Off the acquisition of PartnerTech, Scanfil reported first-quarter sales rose 184% to EUR 130.4 million ($149.6 million).

Operating profit fell to EUR 400,000 from EUR 2.7 million last year, although excluding one-time items the operating profit rose 89% to EUR 5.1 million. The net loss was EUR 1.7 million, down from a profit of EUR 2.7 million a year ago.

The EMS company took EUR 4.7 million in charges due to adjustments and factory closings related to its 2015 acquisition of PartnerTech.

Scanfil guided for 2016 sales of EUR 500 million to 550 million ($572 million to $629 million) and operating profit before nonrecurring items of EUR 22 million to 28 million.

Commenting on the results, Scanfil CEO Petteri Jokitalo said, “Our turnover for the first quarter represents an increase of around 16% in comparison to our pro forma turnover for the corresponding period of the previous year. Our operating profit before nonrecurring items totaled EUR 5.1 million, an increase of 73% year-on-year pro forma. Demand developed favorably, particularly in the Medtech, energy and automation, and defense segments.

"The integration of the companies, the elimination of overlap in administration and factories and the restructuring of poorly profitable factories continued as planned. The ramp-down of the factory in Norway progressed, and the Sweden-based PartnerTech Aerodyn AB was divested. Measures to eliminate overlap and streamline operations were started in China. An investigation into the possible divestment of the PartnerTech Karlskoga factory and potential buyers was launched. After the review period, in April, statutory labor negotiations were completed at the factory in England. It was decided that the plant would be closed."

Scanfil ranked 44th on the CIRCUITS ASSEMBLY Top 50 list of the largest EMS companies, to be released early next week. 

Ed.: 1 EUR = $1.14

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