SENAI, JOHOR, MALAYSIA -- VS Industry expects lower profits this year on slowing demand for EMS services in China and end-of-life programs for a key customer in Malaysia.

The EMS firm reported slowing demand at its Malaysia plants due to end-of-life programs and reduced orders from existing and new customers. VSI added that its China operations have excess capacity, and the company is downsizing those plants.

The firm expects lower profits as a result.

Sales will be partially offset by a ramp in production for Bissell carpet cleaners that began in September. It also won an order from a pair of new customers that could be worth up to $72 million revenue starting in fiscal 2020.

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