Scanfil Oyj - Interim report (Q1 and Q3)

SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2016

SCANFIL PLC                 INTERIM REPORT          21 OCTOBER 2016  8.00 A.M.

SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2016

Results of restructuring are already visible in profitability

July – September
- Turnover totalled EUR 121.7 million (Q3 2015: 135.8), down 10.3%
- Operating profit EUR 7.4 million (5.2), 6.1% (3.9%) of turnover,
  adjusted operating profit* EUR 7.6 (8.6) million, 6.2% (6.4%) of turnover
- Profit was EUR 6.5 million (2.8)
- Earnings per share amounted EUR 0.11 (0.05),
  earnings per share without adjustment items* EUR 0.11 (0.10)

January – September
- Turnover totalled to EUR 385.7 million (1-9/2015: 234.5), up to 64.4%
- Operating profit EUR 4.0 million (10.2), 1.0% (4.3%) of turnover,
  adjusted operating profit* EUR 17.2 (14.4) million, 4.5% (6.2%) of turnover
- Profit for the review period was EUR -1.2 million (7.2)
- Earnings per share were EUR -0.02 (0.12),
  earnings per share without adjustment items* EUR 0.20 (0.19)

* Adjustments (previously referred to as "non-recurring items") include the
costs of the reorganisation, sale and closure of poorly profitable units of
PartnerTech AB's plant network and the Metal Precision business acquired the
previous year. The corresponding adjustments for 2015 consisted of costs
related to the acquisition of PartnerTech AB and an impairment related to the
Hungarian operations. 


Pro forma comparison January–September

- Turnover 1–9/2016: EUR 385.7 (1–9/2015 pro forma: 372.4) million, up 3.6%
- Operating profit excluding adjustments 1–9/2016: EUR 17.2 (1–9/2015 pro
forma: 13.4) million, up 28.7% 
The pro forma comparison figures have been calculated to illustrate a scenario
in which Scanfil plc and PartnerTech AB were merged on 1 January 2015. 


Future prospects

Scanfil specifies its estimate of its turnover and operating profit in 2016,
estimating that the turnover will be EUR 500–520 million and the operating
profit before adjustments will amount to EUR 22 – 25 million. 

Previously, Scanfil estimated that its turnover for 2016 would be EUR 500–550
million and the operating profit before adjustments would amount to EUR 22–28
million. 

Petteri Jokitalo, CEO of Scanfil plc:

"I am pleased with our profitability in the third quarter. The operating profit
of 6% shows that the restructuring and efficiency measures we have taken can
already be seen in our result. We have concentrated on our profitable
businesses, and our cost structure is significantly lighter. We will continue
to challenge our current ways of operating as well as our cost structure. We
target to achieve even more agile operating model and lower fixed costs. 

January–September turnover was EUR 386 million. The growth in pro forma
turnover was 3.6% year-on-year. During the third quarter, customer demand
decreased in general, and the market situation was and continues to be
challenging. 

The integration of companies, elimination of overlapping activities as well as
the restructuring of unprofitable factories proceeded according to plans. The
Dongguan plant in China was closed down, and the statutory labor negotiations
to adjust Vantaa plant's operations were started." 

Key Indicators                                                                  
                                                                                
                                                    1 - 9       1 - 9     1 - 12
                                                     2016        2015       2015
                                                                                
Return on equity, %                                  -1.5         9.9        8.6
Return on investment, %                               4.1        10.3       10.2
Interest-bearing liabilities, EUR million            76.6        88.7       83.4
Gearing, %                                           44.7        63.9       60.3
Equity ratio, %                                      38.0        32.8       34.2
Gross investments, EUR million                        3.5         3.6       54.3
% of net turnover                                     0.9         1.5       14.4
Personnel, average                                  3 686       1 993      2 690
                                                                                
Earnings per share, EUR                             -0.02        0.12       0.15
Shareholders´ equity per share, EUR                  1.67        1.74       1.76
                                                                                
Number of shares at                                                             
the end of period, 000´s                                                        
- not counting own shares                          63 670      57 730     57 730
- weighted average                                 62 000      57 730     57 730
                                                                                
                                                                                
Owing to the nature of the sector, the company´s order book covers only a short 
 period of time and                                                             
does not give an accurate picture of future development.                        

Financial development

The Group’s turnover for January - September was EUR 385.7 (234.5) million. 
The breakdown of turnover by regional segment was as follows: Europe and USA
79% (69%), Asia 21% (31%). 

The Group's operating profit for January – September was EUR 4.0 (10.2)
million, representing 1.0% (4.3%) of turnover. Adjusted operating profit was
EUR 17.2 (14.4) million, representing 4.5% (6.2%) of turnover. The operating
profit for the period under review includes adjustments of EUR 13.2 million,
consisting of the restructuring and reorganisation costs of the plant network
related to the divestment and the closure of subsidiaries with low
profitability. The adjustments for the previous year consisted of costs related
to the acquisition of PartnerTech AB and an impairment related to the Hungarian
operations, totalling EUR 4.0 million. 

The result for the period was EUR -1.2 million (7.2 million), and the result
before adjustment items was EUR 12.5 (11.4) million. 

The Group's turnover for July–September amounted to EUR 121.7 (135.8) million
and operating profit was EUR 7.4 (5.2) million, or 6.1% (3.9%) of turnover. The
third quarter includes a total of EUR 0.1 (3.4) million of adjustments.
Operating profit excluding adjustments was EUR 7.6 (8.6) million, representing
6.2% (6.4%) of turnover. 

Earnings per share were EUR -0.02 (0.12) for the period under review, and
earnings per share excluding adjustments were EUR 0.20 (0.19). The return on
investment was 4.1% (10.3%). 

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Interim Report
1 January – 30 September, 2016 and includes the most relevant information of
the report. The complete report is attached to this release as a pdf file and
is also available on the company’s website at www.scanfil.com. 


SCANFIL PLC

Petteri Jokitalo
CEO



Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111



Distribution         NASDAQ OMX, Helsinki
                           Major Media
                           www.scanfil.com




Scanfil is an international contract manufacturer and system supplier for the
electronics industry with 40 years of experience in demanding contract
manufacturing. Scanfil provides its customers with an extensive array of
services, ranging from product design to product manufacturing, material
procurement and logistics solutions. Vertically integrated production and a
comprehensive supply chain are the foundation of Scanfil’s competitive
advantages: speed, flexibility and reliability. 

Typical Scanfil products include mobile and communications network devices,
automation system modules, frequency converters, lift control systems,
analysers, various slot and vending machines, and devices related to medical
technology and meteorology. Scanfil services are used by numerous international
automation, energy, IT and health service providers, as well as companies
operating in the field of urbanisation. Scanfil’s network of factories consists
of 12 production units in Europe, Asia and North America. The total number of
employees is 3,500. 

Not to be published or distributed, directly or indirectly, in any country
where its distribution or publication is unlawful. Forward looking statements:
certain statements in this stock exchange release may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements of Scanfil Oyj to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. When used in this stock exchange release, such statements use such
words as "may," "will," "expect," "anticipate," "project," "believe," "plan"
and other similar terminology. New risk factors may arise from time to time and
it is not possible for management to predict all of those risk factors or the
extent to which any factor or combination of factors may cause actual results,
performance and achievements of Scanfil Oyj to be materially different from
those contained in forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking information
contained in this stock exchange release is current only as of the date of this
stock exchange release. There should not be an expectation that such
information will in all circumstances be updated, supplemented or revised,
except as provided by the law or obligatory regulations, whether as a result of
new information, changing circumstances, future events or otherwise.

Bifogade filer:

Scanfil Plc Interim Report 21102016.pdf