ESPOO, FINLAND – Aspocomp reported first quarter net sales were €6.2 million (US$7.5 million), a year-over-year decrease of 7%. Net sales declined steadily in almost all customer segments, except for Industrial Electronics, which grew 22%.
The company posted an operating loss of €500,000, compared to an operating loss of €400,000 in the prior year quarter. The operating result was burdened at the beginning of the year by the low net sales level and unfavorable product mix, as well as increased maintenance costs at the Oulu plant.
The five largest customers accounted for 48% of net sales. In geographical terms, 87% of net sales were generated in Europe and 13% on other continents.
The order book at the end of the review period was €5.3 million. Cash flow from operations amounted to negative €100,000 in the first quarter.
Demand is expected to improve in all customer segments. However, a global shortage of components may hinder positive developments.
Aspocomp estimates net sales and operating income for 2021 will increase. In 2020, net sales were to €25.6 million, while operating loss was €100,000.
“Demand for PCBs was weak as expected in the first quarter, which is typically the quietest quarter of the year,” said CEO Mikko Montonen. “The net sales for January-March amounted to €6.2 million, a year-on-year decrease of about 7%. The decline in net sales was steady in almost all customer segments, with only the Industrial Electronics segment swinging to growth of 22%. Customer prospects and purchases clearly picked up toward the end of the quarter, as companies began to prepare for growth in demand when Covid-19 pandemic restrictions will be eased. The growth expectations of the electronics industry are also reflected in the difficult availability of raw materials and semiconductor components and the significant increase in delivery times.
“The operating result was €0.5 million in the red, a year-on-year decrease of 16%. The weak operating result was affected by the low level of net sales at the beginning of the year, an unfavorable product mix and increased maintenance costs at the Oulu plant due to equipment breakdowns and preventive maintenance. Our earnings performance will recover in step with rising demand and the positive development of the order book.”
Due to the Covid-19 pandemic and the resulting decline in general demand, as well as for financial reasons, some customers have had to postpone or cancel orders. Asian PCB mass suppliers have had overcapacity due to the weaker market situation, which allowed them to exceptionally respond to changing customer needs.
The company’s production at the Oulu plant has continued normally, and delivery capacity has been reasonable. The company has continued to invest in new capacity and increased its product development investments in new products and more challenging technologies.
The pandemic has not affected the company’s liquidity. The cash situation has remained good, and the credit facilities have not been used. The company has had no need to recognize write-downs of goodwill.
Ed.: €1 = US$1.21
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