Scanfil Reports 19% Drop in Q3 Revenue
OULU, FINLAND – Scanfil announced an 18.6% year-over-year decrease in third quarter revenue, totaling €173.3 million ($187.1 million).
For the first nine months of the year, the company's revenue of €567.7 million represented a decrease of 16.6% compared to the same quarter last year.
“The third quarter was solid for Scanfil and we continued to deliver the long-term operating margin target of 7%-8% despite a challenging market situation," said CEO Christope Sut. "As market demand remained slow during the third quarter, the Scanfil team focused on operational efficiency. We secured a solid 7.2% operating margin and generated a net cash flow from operations €21.8 million, resulting from continuous disciplined inventory management.
"At the end of the third quarter our financial position was solid. Gearing was 4% (32.6%), and the equity ratio was 58.2% (47.8%). Inventory management improved and inventories were reduced by €9 million in the third quarter. Compared to the end of September last year, inventories decreased by EUR 51.4 million. Our net debt level is down to 0.15 times EBITDA, well below our long-term target of 1.5. Our strong performance allows us to look at potential future investments to support the growth.
