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IPC Releases February 2007 Book-to-Bill Ratios
Written by Tracy Heffner
Monday, 02 April 2007
BANNOCKBURN, IL – IPC, Association Connecting Electronics Industries, reported the North American rigid PCB industry book-to-bill ratio for February 2007 climbed to 0.96 while the North American flexible circuit book-to-bill ratio increased to 0.97. The combined (rigid and flex) industry book-to-bill ratio in February 2007 reflected these gains and grew to 0.96.
These ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from the companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which indicates probable near-term growth. Rigid PCB shipments are down 9.9% and bookings are down 19.1% in February 2007 from February 2006. Year to date, rigid PCB shipments are down 6.8% and bookings are down 19.2%. Compared to the previous month, rigid PCB shipments increased 2% and rigid bookings increased 4.2%.
Flexible circuit shipments in February 2007 were up 2.7% and bookings were up 29.5% compared to February 2006. Year to date, flexible circuit shipments are up 8.2% and bookings are up 5.6%. Compared to the previous month, flexible circuit shipments decreased 0.6% and flex bookings were down 2%.
For rigid PCBs and flexible circuits combined, industry shipments in February 2007 decreased 9.2% from February 2006, and orders booked decreased 17.4% from February 2006. Year to date, combined industry shipments are down 6% and bookings are down 18.1%. Compared to the previous month, combined industry shipments for February 2007 are up 1.8% and bookings are up 3.9%.
“Following a four-month decline in the PCB industry’s book-to-bill ratio, it is finally turning upward,” said IPC President Denny McGuirk. “The flexible circuit segment began its upward climb in December of 2006, and the rigid PCB segment showed its first up-tick in February 2007.”
“Book-to-bill ratios in both segment are still below parity, which indicates a slowdown in growth in early 2007. But sales and orders in both segments are following their usual seasonal patters,” he said.
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