SCHRAMBERG, GERMANY – Schweizer Electronic posted first quarter sales of €31.8 million (US$37.7 million), down 2.2% year-over-year.

EBITDA was flat at €3.5 million euro, and EBITDA margin rose 20 basis points to 10.9%. EBIT (earnings before interest and taxes) increased 0.7% to €1.6 million.

Automotive, Schweizer's most important segment, specifically autonomous driving and lighting technologies, boosted printed circuit board demand, the company said. Growth was offset in part by increasing supply chain bottlenecks, in particular components. Sales to automotive customers made up €22.1 million in the quarter, while industrial sales rose 10.4% to $7.4 million.

The Schramberg factory accounted for 88% of overall sales, and partners in Asia made up 12%. Series production started at Meiko Electronics in Vietnam as well as at Wus in Kunshan, China, and Schweizer expects output to increase in coming quarters.

Debt at quarter's end rose 3% sequentially to €52.9 million.

“We are very happy with the start into the new fiscal year," said Marc Bunz, chief financial officer, Schweizer Electronic. "We expect [sales] to increase 6 to 8% to a level slightly below €130 million euro. The turnover achievements of the first quarter and the expected sales increases through our partner network reaffirm this forecast.

Bunz said the company is maintaining previous estimate of EBITDA of €10 million or an EBITDA margin of 7 to 9%. "Besides the usual seasonal influences we also expect an impact deriving from the start of the construction period of our site in China," he added.

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