Viasystems Posts Q2 Net Sales Down Nearly 4% | Print |  E-mail
Written by Chelsey Drysdale   
Tuesday, 06 August 2013 18:21

ST. LOUISViasystems Group posted a net loss for the June quarter of $10.3 million, up from a net loss of $33 million a year ago, and a net loss in the previous quarter ended Mar. 31 of $13.3 million.

Net sales for the quarter ended June 30 were $285.6 million, a year-over-year decrease of 3.8%, and a sequential increase of 4.6%. The decrease was primarily the result of reduced demand for automotive, industrial & instrumentation and computer/datacom, the fabricator and contract electronics assembler said.

On a pro forma basis excluding the May 2012 acquisition of DDi, net sales for the quarter declined 16.2% year-over-year.

Adjusted EBITDA for the period was $30.7 million, or 10.8% of net sales, down 31.3% year-over-year, and up 4.1% sequentially.

“While consolidated net sales for our second quarter were in line with analysts’ expectations, our earnings came in slightly below,” said Viasystems CEO David M. Sindelar. “However, I believe we gained momentum in the quarter and still expect to see sales and earnings improvements in the second half of the year. In particular, we have been awarded significant new projects in most of our end markets. These new project awards are a subset of a solid book-to-bill ratio in the second quarter. The new projects are also expected to complement our continued recovery from the setbacks we suffered in both our PCB and Assembly segments last year.”

Sindelar said increasing employment costs in China continue to be a challenge.

Net sales in the company’s assembly segment were $44.9 million, down 20.5% year-over-year. The segment posted an operating loss for the second quarter of $100,000, compared to operating income of $1.6 million for the second quarter of 2012. Net sales in the printed circuit boards segment were $240.7 million, nearly flat with the year-ago period. Operating income was $4.7 million, down 69% year-over-year.

Solid demand for PCBs used in the company’s automotive, telecom and military/aerospace end markets was offset by soft demand in the company’s computer/datacom and industrial & instrumentation end markets during the quarter ended June 30.
 

 

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