SCANFIL PLC HALF YEAR FINANCIAL REPORT 8 AUGUST 2017 8.00 A.M.
SCANFIL GROUP’S HALF YEAR FINANCIAL REPORT 1 JANUARY – 30 JUNE 2017
Stable overall development and strong result, full year outlook specified
April – June 2017
– Turnover totalled to EUR 132.4 million (Q2 2016: 133.6)
– Operating profit EUR 7.1 million (-3.6, before adjustments 4.7), 5.3% of turnover
(-2.7%, before adjustments 3.6%)
– Profit was EUR 4.3 million (-6.1)
– Earnings per share amounted EUR 0.07 (-0.10, before adjustments 0,05)
January – June 2017
– Turnover totalled to EUR 254.7 million (H1 2016: 263.9)
– Operating profit EUR 13.2 million (-3.1, before adjustments 9.9), 5.2% of turnover
(-1.2%, before adjustments 3.8%)
– Profit for the review period was EUR 10.2 million (-7.7)
– Earnings per share were EUR 0.16 (-0.13, before adjustments 0.10)
The half year report does not include any adjustments to report. Adjustments for the year 2016 include the costs of the reorganisation, sale and closure of poorly profitable units of PartnerTech AB’s plant network and the Metal Precision business acquired in the year 2015.
Future outlook
Scanfil specifies its estimate of its turnover and operating profit in 2017, estimating that the turnover will be EUR 500–530 million and the operating profit will amount to EUR 28 – 31 million.
Previously Scanfil estimated that its turnover for 2017 will be EUR 480 – 520 million and the operating profit will amount to EUR 26 -31 million.
| Key figures | |||||||
| Q2/2017 | Q2/2016 | Change% | H1/2017 | H1/2016 | Change% | 1-12.2016 | |
| Turnover, EUR million | 132.4 | 133.6 | -1% | 254.7 | 263.9 | -3% | 508.0 |
| Operating Profit, EUR million | 7.1 | -3.6 | 297% | 13.2 | -3.1 | 526% | 7.2 |
| Operating Profit, Adjusted, EUR million | 7.1 | 4.7 | 51% | 13.2 | 9.9 | 33% | 22.3 |
| Operating Profit, % | 5.3 | -2.7 | 5.2 | -1.2 | 1.4 | ||
| Operating Profit, %, Adjusted | 5.3 | 3.6 | 5.2 | 3.8 | 4.4 | ||
| Net Profit, EUR million | 4.3 | -6.1 | 170% | 10.2 | -7.7 | 232% | 0.1 |
| Net Profit, Adjusted, EUR million | 4.3 | 2.9 | 48% | 10.2 | 5.9 | 73% | 15.7 |
| Earnings per Share, EUR | 0.07 | -0.10 | 170% | 0.16 | -0.13 | 223% | 0.00 |
| Return on Equity, % | 18.5 | -15.4 | 0.1 | ||||
| Equity Ratio, % | 38.4 | 35.7 | 40.7 | ||||
| Net Gearing, % | 44.8 | 58.9 | 36.9 | ||||
| Net Cash Flow from Operations, EUR million | 4.7 | -4.9 | 196% | 16.5 | |||
| Employees (Average) | 3 200 | 3 625 | -12% | 3 483 | |||
Petteri Jokitalo, CEO of Scanfil plc:
“Scanfil’s strong performance in the second quarter shows that the selected strategy works. The factory network is now optimized, and the cost structure is clearly lower and more competitive, enabling profitable business.
In the second quarter, turnover increased by about 10% compared to the first quarter. Growth was driven by generally picked up customer demand and several strong new customer ramp-ups.
Operating profit continued to develop favorably, both in absolute terms and in relative terms, being 5.3% of turnover in the second quarter. The fixed costs of the closed Vantaa and Hungarian factories were still burdening the Q2 result, and the production ramp-ups in Myslowice and Sievi contributed extra costs. The restructuring of the factory network has now been completed, and I expect to see the positive results in full impact during the rest of the year. We are well on the way to targeted 6% operating profit. Net gearing decreased, and the return on equity was 18.5%.
Many of our customers have indicated that the strengthen economic development, especially in North America and Europe, will improve their business outlook. This can also be seen in higher demand in Scanfil’s services. Based on this, we have specified our future outlook for 2017. Our new guidance for the turnover is 500 – 530 MEUR and operating profit 28-31 MEUR.
I thank Scanfil’s personnel for the hard work of meeting our company goals.”
Financial Development
The Group’s turnover for January – June was EUR 254.7 (263.9) million with a decrease of 3.5% compared to the previous year. The Group’s operating profit for January – June was EUR 13.2 (-3.1) million, representing 5.2% (-1.2%) of turnover. The operating profit for the previous year includes adjustments total of EUR 13.1 million, consisting of the costs of the reorganisation, sale and closure of poorly profitable units of PartnerTech AB’s plant network and the Metal Precision business acquired in the year 2015. The result for the review period was EUR 10.2 (-7.7) million. The result for the comparison period without adjustments was EUR 5.9 million. Operating profit without adjustments for the comparison period was EUR 9.9 million, 3.8% of turnover.
Earnings per share for the review period were EUR 0.16 (-0.13). In the previous year, the earnings per share without adjustments were EUR 0.10. Return on investment was 16.0 (-3.1)%.
The Group’s turnover for April–June amounted to EUR 132.4 (133.6) million and operating profit was EUR 7.1 (-3.6) million, or 5.3% (-2.7%) of turnover. The second-quarter operating profit includes the sales gain of EUR 1.2 million from the sales of the factory property of Rozalia Invest Kft., Hungary, a 100% owned subsidiary of Scanfil EMS Oy. In addition, the operating profit includes a total of EUR 1.0 million expenses related to the closure of the companies and other individual non-recurring expenses. The previous year’s operating profit includes EUR 8.4 million adjustment items and operating profit excluding adjustments in the comparative period was EUR 4.7 million, 3.6% of turnover.
Publication of financial releases
This stock exchange release is a summary of the Scanfil Group’s half year financial report 1 January – 30 June 2017 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 3,200.
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.