PartnerTech Year-end Report January - December 2011
Fourth quarter 2011
• Net sales were SEK 637.9 million (617.6)
• Operating profit was SEK 29.2 million (6.5)
• Profit after tax was SEK 10.2 million (8.8)
• Earnings per share after tax totaled SEK 0.81 (0.70)
• Cash flow after investments amounted to SEK 99.9 million (16.2)
• PartnerTech signed an agreement in October concerning production and delivery of products for Vestas Control Systems A/S
January-December 2011
• Net sales were SEK 2,322.2 million (2,181.1)
• Operating profit was SEK 47.3 million (-15.3)
• Profit after tax was SEK 5.2 million (-19.6)
• Earnings per share after tax totaled SEK 0.41 (-1.55)
• Cash flow after investments amounted to SEK 117.9 million (-31.4)
• The equity/assets ratio was 39.4% (37.7)
• The board proposes that the annual general meeting distribute no dividend (0) for fiscal year 2011
A word from the CEO
PartnerTech’s sales for 2011 totaled SEK 2,322.2 million, an increase of 9.2% in local currencies compared with 2010, and operating profit improved substantially. Higher earnings confirm the impact of the activities that we have been conducting to ensure sustainable profitability in all markets, reduce capital tied up and set the stage for growth. We upgraded our internal processes during the year in order to streamline our operations and thereby minimize costs and capital tied up. We have strengthened our sales organization, which allows us to focus more on strategically selected customers. Our goal is to increase the proportion of sales at higher levels in the value chain, reinforcing our position as a full-scale technology and service partner. Among the action and restructuring programs that we announced previously, we have now completed consolidation of our entire British business in Cambridge. The programs have also included our units in Vellinge and Moss. Meanwhile, we have continued to pursue a restructuring strategy aimed at expanding our share of production in low-cost Eastern European and Asian countries so as to more fully satisfy the needs of our customers. At the same time, we are committed to maintaining our customer centers in all key strategic markets. The centers are vital to our ability to provide our customers with optimum service through close collaboration and leading-edge technical skills, along with flexible and cost-effective production processes.
Fourth quarter sales totaled SEK 637.9 million, a 5.6% increase in local currencies from the same period of 2010, and our operating margin was 4.6%. The improved operating margin was largely due to internal streamlining, which reduced costs and capital tied-up, as well as higher sales. The increase in sales was a direct reflection of our fortified sales organization.
Developments during the year have been positive for PartnerTech but as I said in the third quarter, uncertainty and volatility in the global markets make it difficult to foresee the future. With those challenges in mind, we will insistently pursue our strategy of adapting and streamlining our organization in order to boost our profitability in each market we serve. The results of our restructuring and ongoing internal improvement efforts have been promising so far. The good relationships that we have developed with our customers also represent a vitally important success factor; much of our effort goes to nurturing and building on that collaboration. Although a great deal remains to be done, the progress that we have made – along with our competitive organizational structure and our broad-based global range of services – provides a firm foundation for the future.
Leif Thorwaldsson
President and CEO
For complete report, please see attached file.
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
PartnerTech
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) is 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 08.30 am on February 17, 2012.