Scanfil Oyj - Interim report (Q1 and Q3)

SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 31 MARCH 2016

SCANFIL PLC                 INTERIM REPORT           29 APRIL 2016  9.00 A.M.

SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 31 MARCH 2016

January – March
- Turnover totalled EUR 130.4 million (Q1 2015: 45.9), up to 183.8%
- Operating profit EUR 0.4 million (Q1 2015: 2.7), 0.3% (Q1 2015: 5.8%) of
turnover 
- Operating profit excluding non-recurring items EUR 5.1 million (2.7), 3.9% 
(5.8%) of turnover 
- Profit was EUR -1.7 million (Q1 2015: 2.7)
- Earnings per share amounted EUR -0.03 (Q1 2015: 0.05)
- Earnings per share without non-recurring items EUR 0.05

January – March pro forma
- Turnover  EUR 130.4 million (Q1 2015: 112.1), up to 16.3%
- Operating profit excluding non-recurring EUR 5.1 million (Q1 2015: 2.9), up
to 72.6% 

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. 

The non-recurring items recognised for January–March 2016 totalled EUR 4.7
million and consisted of impairment and provisions related to the close-down of
the operations of PartnerTech AS. 

Future prospects

Scanfil estimates that its turnover for 2016 will be EUR 500–550 million and
the operating profit before non-recurring items will amount to EUR 22–28
million. 

Petteri Jokitalo, CEO of Scanfil plc:
“Our turnover for the first quarter of 2016 was EUR 130 million, which
represents an increase of around 16 per cent in comparison to our pro forma
turnover for the corresponding period of the previous year. Our operating
profit before non-recurring items totalled EUR 5.1 million, marking an increase
of 73 per cent year-on-year (pro forma). Demand developed favourably,
particularly in the Medtech, Energy and Automation, and Defence customer
segments. 

The integration of the companies, the elimination of overlap in administration
and factories and the restructuring of poorly profitable factories continued as
planned. The ramp-down of the factory in Norway progressed, and the
Sweden-based PartnerTech Aerodyn AB was divested. Measures to eliminate overlap
and streamline operations were started in China. An investigation into the
possible divestment of the PartnerTech Karlskoga factory and potential buyers
was launched. After the review period, in April, statutory labour negotiations
were completed at the factory in England. It was decided that the plant would
be closed down. 

I am pleased with the progress of the integration and synergy processes during
the first quarter. I am confident that we will achieve our targets.” 

Key Indicators                                                                  
                                                                                
                                                    1 - 3       1 - 3     1 - 12
                                                     2016        2015       2015
                                                                                
Return on equity, %                                  -6.1        11.0        8.6
Return on investment, %                               0.9        12.0       10.2
Interest-bearing liabilities, EUR million            79.0         9.5       83.4
Gearing, %                                           47.3       -12.8       60.3
Equity ratio, %                                      39.1        71.2       34.2
Gross investments, EUR million                        0.7         2.2       54.3
% of net turnover                                     0.5         4.8       14.4
Personnel, average                                  3 780       1 781      2 690
                                                                                
Earnings per share, EUR                             -0.03        0.05       0.15
Shareholders´ equity per share, EUR                  1.80        1.79       1.76
                                                                                
Number of shares at                                                             
the end of period, 000´s                                                        
- not counting own shares                          63 445      57 730     57 730
- weighted average                                 63 445      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 - March was EUR 130.4 (45.9) million.  The
breakdown of turnover by regional segment was as follows: Europe and USA 82%
(63%), Asia 18% (37%). 

The Group's operating profit for January–March was EUR 0.4 (2.7) million,
representing 0.3% (5.8%) of turnover. The operating profit includes a total of
EUR 4.7 million of non-recurring expenses. The non-recurring items consisted of
impairment and provisions related to the close-down of the operations of
PartnerTech AS. The operating profit before non-recurring items was EUR 5.1
million, or 3.9% of the turnover. In the first quarter of 2015, non-recurring
items totalled EUR 0.1 million. 

The Group has a high tax rate as a result of the loss related to its business
operations in Norway, the provision related to the close-down of operations and
the derecognition of deferred tax assets related to Scanfil Limited. Excluding
the items mentioned above, the effective tax rate was around 24%. 

The result for the period was EUR -1.7 million (2.7 million), and the result
before non-recurring items was EUR 3.0 million. 

Earnings per share were EUR -0.03 (0.05), and earnings per share before
non-recurring items were EUR 0.05. The return on investment was 0.9% (12.0%). 

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Interim Report
1 January – 31 March, 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 15 production units in Europe, Asia and North America. The total number of
employees is 3,800. 

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.

Attachments:

Scanfil plc Interim Report 29 April 2016.pdf