Restructuring Charges Swing Scanfil to Q2 Loss
SIEVI, FINLAND -- Scanfil today reported second quarter sales of EUR 133.6 million ($148.6 million), up 152.8% on its acquisition of PartnerTech.
The net loss was EUR 6.1 million, down from a profit of EUR 1.7 million a year ago.
The operating loss was EUR 3.8 million, down from a gain of EUR 2.3 million last year.
The EMS company took EUR 14 million in restructuring costs during the period, about EUR 6.5 million in cash.
On a pro forma basis, sales are up 11.1% to EUR 263.9 million for the first half of 2016. Adjuested operating profit was EUR 9.7 million, an increase of 95% year-over-year on a pro forma basis. The pro forma figures are calculated as if Scanfil and PartnerTech merged Jan. 1, 2015.
Scanfil reiterated its sales guidance of EUR 500 million to 550 million for 2016.
“Our revenue for the first half was EUR 264 million, which represents an increase of around 11% in comparison with our pro forma turnover of the previous year," Petteri Jokitalo, CEO of Scanfil said. "I am satisfied with the development of sales. It proves that our customers have given their support and faith to the acquisition and new Scanfil. Our most important task is to continuously develop our operations and competitiveness. An example of this is our decision to double the capacity of the Sieraz electronics plant in Poland. We aim to be the preferred contract manufacturing partner for our customers."
Scanfil shut its operations in Norway in June and in the UK in July, and divested its PartnerTech Aerodyn and PartnerTech Karlskoga operations. It also is closing a plant in Dongguan, acquired in the PartnerTech deal. The operating loss of those in 2015 amounted to approximately EUR 8.3 million.
Ed.: 1 EUR = $1.112
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