SCANFIL PLC INTERIM REPORT 26 APRIL 2018 8.00 A.M.
SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 31 MARCH 2018
Q1/2018: Positive year start, strengthening outlook for the rest of the year
January – March
– Turnover totalled to EUR 139.6 million (Q1 2017:122.2), growth 14.2%
– Operating profit EUR 10.3 (6.2) million, 7.4 (5.0)% of turnover
– Profit for the review period was EUR 7.6 (5.8) million
– Earnings per share were EUR 0.12 (0.09)
Future outlook
Scanfil plc upgraded (13 April 2018) its turnover and operating profit outlook for 2018 and estimates that the turnover will be approximately EUR 545 – 585 million and the operating profit EUR 36 – 40 million.
Scanfil’s previous estimate was that its turnover for 2018 will be EUR 530 – 570 million and operating profit was estimated to be EUR 33 – 37 million.
| KEY FIGURES | ||||
| Q1/2018 | Q1/2017 | Change% | 2017 | |
| Turnover, EUR million | 139.6 | 122.2 | 14% | 529.9 |
| Operating Profit, EUR million | 10.3 | 6.2 | 67% | 31.3 |
| Operating Profit, % | 7.4 | 5.0 | 5.9 | |
| Net Profit, EUR million | 7.6 | 5.8 | 30% | 25.8 |
| Earnings per Share, EUR | 0.12 | 0.09 | 30% | 0.40 |
| Return on Equity, % | 23.7 | 20.9 | 22.2 | |
| Equity Ratio, % | 42.1 | 39.4 | 40.7 | |
| Net Gearing, % | 35.2 | 40.0 | 32.6 | |
| Net Cash Flow from Operations, EUR million | -3.1 | 5.1 | -162% | 21.3 |
| Employees (Average) | 3 405 | 3 214 | 6 % | 3 254 |
Petteri Jokitalo, CEO of Scanfil plc:
We expected to have a positive start for the year and this we got. The first quarter turnover increased by 14%, supported by the growth in almost all customer segments. The development of the factory network productivity proceeded well, which can be seen in the first quarter profitability. The operating profit in the quarter was EUR 10.3 million with a growth of 67% from the previous year with an operating margin of 7.4%. The return on equity was 23.7%. We have now improved our operating profit both in absolute and relative terms for five consecutive quarters in a row. I am pleased with the sales and profitability development during the first quarter as well as with our longer-term business development.
The availability of the components continued to be challenging which required much focus and activities from our sourcing team. The actions taken ensured the maximum availability of the components, and we did not suffer from remarkable material shortages during the quarter. I am very satisfied with the work done by the sourcing team in this demanding situation. We were also preparing ourselves for second quarter delivery volumes and components needs, which can be seen in the working capital increase.
We continued our investment program and, among other things, took into use a new SMT line in our Suzhou factory. Additionally, we placed orders for new SMT line, 3D testing equipment, and automated testing system. Deliveries of ordered lines will take place mainly by the end of the second quarter. The acquisition of new lines, the value of about EUR 3 million, will bring our automated electronics production into the next level, and it will further improve our production performance, quality and productivity and clearly increase the value-add for our customers.
Our customer demand for the rest of the year has developed better than we expected. We updated our guidance, and according to our new guidance we expect to reach turnover EUR 545 – 585 million and operating profit EUR 36 – 40 million. Higher turnover will partly increase operating profit; also positive productivity development of the factories will have an impact on profitability.
I thank the employees of Scanfil for excellent work. I am happy with the progress of Scanfil and confident that the targets we set will be met.
Financial Development
The Group’s turnover for January – March was EUR 139.6 (122.2) million, growth 14.2% compared to the
corresponding period of the previous year. The Group’s operating profit for January – March was EUR 10.3 (6.2) million, 7.4 (5.0)% of turnover. Operating profit grew 66.9% compared the corresponding period of the previous year. The net profit for the review period was EUR 7.6 (5.8) million.
Earnings per share for the review period were EUR 0.12 (0.09). Return on investment was 21.8 (16.7)%.
Publication of financial releases
This stock exchange release is a summary of the Scanfil Group’s interim report 1 January – 31 March 2018 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at www.scanfil.com.
SCANFIL PLC
Petteri Jokitalo
CEO
Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Major Media
www.scanfil.com
Scanfil is an international contract manufacturer and system supplier for the electronics industry with 40 years of experience in demanding contract manufacturing. Scanfil provides its customers with an extensive array of services, ranging from product design to product manufacturing, material procurement and logistics solutions. Vertically integrated production and a comprehensive supply chain are the foundation of Scanfil’s competitive advantages: speed, flexibility and reliability.
Typical Scanfil products include mobile and communications network devices, automation system modules, frequency converters, lift control systems, analysers, various slot and vending machines, and devices related to medical technology and meteorology. Scanfil services are used by numerous international automation, energy, IT and health service providers, as well as companies operating in the field of urbanisation. Scanfil’s network of factories consists of 10 production units in Europe, Asia and North America. The total number of employees is about 3,500.
Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this stock exchange release may constitute ‘forward-looking’ statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil Oyj to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this stock exchange release, such statements use such words as ‘may,’ ‘will,’ ‘expect,’ ‘anticipate,’ ‘project,’ ‘believe,’ ‘plan’ and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil Oyj to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information contained in this stock exchange release is current only as of the date of this stock exchange release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise.