SCHRAMBERG, GERMANY – The Schweizer Group reported sales of PCBs rose 9.7% in the third quarter to 32.8 million euros ($37.2 million) on higher demand from the automotive sector, in particular for power electronics.

Sales to automotive customers rose 15.2% to 23.5 million euro, almost 72% of the company's total sales. Sales to the industrial, consumer electronics and communications end-markets remained almost unchanged in the reporting period. The sales increase of 2.9 million euros was achieved exclusively in Europe. By region, Europe makes up 86% of Schweizer's sales, followed by Asia (8.2%) and the US/rest of world (5.8%).

EBITDA amounted to 2.7 million euros, up 13%, corresponding to an EBITDA ratio of 8.2%. Sales generated through Asian partners Wus Kunshan and Meiko Electronics more than doubled in the quarter and represent almost a quarter of group sales. Gross margin declined by 1 million euros from a year ago to 4.6 million euros, corresponding to 14.1%. EBIT (earnings before interest and taxes) doubled to 800,000 euros.

Work on a new production plant in Jintin, China, began in August. The new plant will be set up within three investment phases, with each marching the current production capacity of the site in Schramberg. Production is set to start at the beginning of 2020.

Year-to-date revenue through September was 96.7 million euros, up 5.3% from a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) jumped 55% to 9.3 million euros, an EBITDA ratio of 9.7%. EBIT rose to 3.6 million euro from 0 euros, including one-time charges of 2.5 million euro in 2017.

At quarter's end orders amounted to 169.1 million euros, down slightly from last year. The company said declining sales in the automotive market triggered by bottlenecks in exhaust gas test procedures, existing and potential trade conflicts and uncertainties concerning imminent bans on diesel vehicles are clouding the forecast. In a statement, Schweizer said customers are shifting orders from the fourth quarter to the next business year.

Schweizer lowered its sales forecast for the fiscal 2018 to around 124 million euros ($141 million), which corresponds to a growth of 2 to 3% . Its previous forecast called for growth of 6 to 8%.

1 EUR = $1.134

• Prev
• Next