ESPOO, FINLAND – Aspocomp reported second quarter net sales were €7.2 million (US$8.5 million), a year-over-year increase of 1%.
Demand strengthened significantly during the second quarter, and the order book rose from €4.2 million to €10.8 million. Net sales growth was strongest in the Industrial Electronics and Automotive segments, while demand in the Telecommunications segment remained weak. Net sales growth was slowed by extended delivery times for production of raw materials.
The five largest customers accounted for 49% of net sales, compared to 45% for the same period last year. In geographical terms, 84% of net sales were generated in Europe, up from 80% in the second quarter of 2020.
Operating profit was €500,000, up 66.7% year-over-year. The increase was due to higher utilization and better product mix. Operating profit was 6.4% of net sales, compared to 3.6% in the second quarter of 2020.
In the second half of 2021, demand is expected to improve in all customer segments. However, a global shortage of components may hinder positive developments.
Aspocomp estimates net sales for 2021 will increase compared to 2020, when net sales were €25.6 million. Operating profit will increase as well. Operating loss in 2020 was €100,000.
For the first six months of 2021, net sales amounted to €13.4 million, down 2.9% year-over-year. First-half operating profit was €0, compared to a loss of €200,000 in the same period last year. The order book at the end of the review period was €10.8 million, compared to €4.2 million in the first half of 2020.
“Demand strengthened significantly during the second quarter of the year, and the order book rose from just over €4 million to almost €11 million,” said CEO Mikko Montonen. “Second quarter net sales increased slightly from the previous year and amounted to €7.2 million. In the second quarter, growth was strongest in the Industrial Electronics and Automotive segments, while demand in the Telecommunications segment remained weak. Net sales growth was slowed by extended delivery times for production of raw materials, such as circuit board laminates. The situation is expected to improve clearly during the second half of the year, when the record strong order book can be manufactured and delivered to customers.
“Second quarter operating result rose into the black and was 6.4% of net sales. The operating result increased due to higher utilization and better product mix. Operating result is expected to improve further as production and delivery volumes increase in the second half of the year.
“The company has continued its investments to increase capacity in line with its strategy, but the completion of equipment installations has been slowed down in part due to delays in material and component deliveries caused by the Covid-19 pandemic.”
The continued recovery in the general market situation had a positive effect on the company’s demand in the second quarter. Demand has started to grow, and the company’s order book level has risen significantly. The Covid-19 pandemic and the effects of related restrictions on supply chains in the electronics industry have been partially mitigated.
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$1.17
