SIEVI, FINLAND – Scanfil Group reported fourth quarter revenue of €140.2 million, down 2.9% year-over-year.

Profit was €6.4 million, a decrease of 39% compared to the fourth quarter of 2017. Operating profit was €7.5 million, 5.4% of revenue, down 21.9%.

For 2018, revenue was €563 million, up 6.3% year-over-year.

Profit for the year was €28.9 million, an increase of 12% over 2017. Operating profit was €37.8 million, 6.7% of revenue, up 20.8%.

“Scanfil’s business developed positively with all key indicators in 2018,” said CEO Petteri Jokitalo. “The turnover increased by 6.3%, supported by almost all customer segments. Over 10% growth rate was achieved in Energy and Automation, Medtec and Life Science and Other Industries segments. The relative operating profit grew from last year and was 6.7%. Net cash flow from operations went up by 37%, and return on equity was good (21.5%).

“I am not entirely satisfied with our performance during the fourth quarter. We remained at a lower level than in the previous year, both in terms of turnover and operating profit. The reason behind the decrease in performance was mainly due to significantly decreased demand for a few notable customers and partly also due to seasonal variation compared to the previous year. The decline in demand was anyhow restricted to a few customers, and the overall demand of our customers developed positively also during the fourth quarter.

“Our customers’ forecasts are looking strong and put us in a good position to seek organic growth also in 2019. We are expecting the year to get off to a slower start and for demand to clearly pick up during the second quarter.  Even though we are focusing on organic growth, we are also interested in potential business acquisitions, especially in the Nordic countries and Central Europe.”

Scanfil estimates 2019 revenue will be €560 million to €610 million and operating profit will be €36 million to €41 million.

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