PartnerTech Interim Report January - September 2011
THIRD QUARTER OF 2011
• Net sales were SEK 535.6 million (482.1)
• Operating profit was SEK 10.0 million (-5.3)
• Loss after tax was SEK -0.8 million (-9.5)
• Earnings per share after tax totaled SEK -0.07 (-0.75)
• Cash flow after investments amounted to SEK 2.1 million (-44.9)
FIRST NINE MONTHS OF 2011
• Net sales were SEK 1,684.3 million (1,563.5)
• Operating profit increased by SEK 39.9 million to SEK 18.1 million (-21.8)
• Loss after tax was SEK -5.0 million (-28.4)
• Earnings per share after tax totaled SEK -0.39 (-2.24)
• Cash flow after investments amounted to SEK 18.0 million (-47.6)
• The equity/assets ratio was 37.6% (36.8) on September 30
A WORD FROM THE CEO
It is with great satisfaction that I can announce that PartnerTech enjoyed higher profitability, improved asset turnover and solid growth in the third quarter. This was our fourth successive quarter with a positive operating margin. Third quarter sales of SEK 535.6 million reflected improvement in every market area, with the exception of Point of Sale Applications and MedTech & Instrumentation. Scheduled customer deliveries that had been postponed from the second quarter also contributed to the positive sales trend.
In the light of growing global competition, I believe that contract manufacturers like PartnerTech must be responsive to the increased demand for flexibility and low-cost production while continuing to satisfy the needs of customers for cutting-edge technical skills. With that in mind, in the third quarter we continued our ongoing effort to improve our processes and raise our level of technical expertise while adapting our organization and taking advantage of our global infrastructure to more fully address the needs of our customers. As part of that strategy, we opened a unit in Cambridge, which now comprises all of our British operations, including production and a customer center in the city’s technology cluster. The initiative represented in additional step in upgrading our customer center and completing the consolidation process in the UK. Capacity utilization at our new ultramodern plant in Myslowice, Poland continued to increase. Along with the facility’s sheet metal working and systems integration resources, that level of activity represents an attractive opportunity for new and old customers alike. Demand for expanded supply chain services is growing in the United States as well.
Conditions in the contract manufacturing market are generally favorable at the moment, and the third quarter offered no indications of a slowdown. Nevertheless, financial uncertainty in global markets makes it difficult to project future trends. In a scenario where current financial uncertainty leads to a downturn in the global economy, the contract manufacturing industry would feel the consequences.
Even if such a scenario were to pan out, however, I continue to believe that our ongoing internal improvement effort – which we launched in the wake of the last financial crisis – along with our skills in selected application areas, not to mention our broad geographic and technical offering, have brought us a long way towards becoming a stronger and more competitive organization that is better equipped to take on the challenges of the future.
President and CEO
For complete report, please see attached file.
PartnerTech develops and manufactures products under contract for leading companies, primarily in Defense and Maritime, Industry, Information Technology, MedTech and Instrumentation, CleanTech and Point of Sale Applications. With almost 1,300 employees at its plants in Sweden, Norway, Finland, Poland, the UK, the United States and China, PartnerTech reports annual sales of more than SEK 2 billion. PartnerTech AB (www.partnertech.com), the parent company, has its head office in Vellinge, Sweden, and is listed on the Nasdaq OMX Stockholm Exchange.
PartnerTech AB, corporate identity number 556251-3308 , Box 103, Industrigatan 2, SE-235 22 Vellinge, Sweden
PartnerTech (publ) may be required to publicly disclose the information in this press release pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for public disclosure at 12.00 am on October 27, 2011.
For additional information, please call:
Leif Thorwaldsson, President and CEO, tel: +46 40-10 26 41
Åke Bengtsson, CFO, tel: +46 40-10 26 42