HELSINKI -- Incap reported third quarter revenue fell 29% year-over-year to EUR 50 million, as its largest customer continues its inventory destocking.

Adjusted operating profit (EBIT) amounted to EUR 6.4 million (EUR 11.2 million), a decrease of 43%, or 12.7% of revenue. Nonrecurring items were mainly related to the acquisition of Pennatronics, a US-based electronics manufacturing services company.

Operating profit (EBIT) fell 48% to EUR 5.7 million, or 11.4% of revenue.

Net profit for the period was EUR 4.4 million (EUR 7.7 million).

Since the beginning of the year, workforce has been reduced by 1,136 people at Incap´s factories in India.

Incap forecast revenue for 2023 will be EUR 210 million to 220 million and EBIT of EUR 24 million to 28 million. The outlook includes the newly acquired Pennatronics business.

The lower operating profit estimate is due to Incap’s largest customer’s updated sales forecast. The customer’s destocking will take longer than expected. Incap expects to see the full impact of the decreased volumes during the fourth quarter.

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