Q2/2019: Growth compared to the first quarter, picking up demand and the acquisition of HASEC-Elektronik GmbH strengthens the rest of the year

April – June

– Turnover totalled EUR 142.6 million (Q2 2018: 151.7), decrease of 6.0%
– Adjusted operating profit EUR 10.3 million, 7.2% of turnover
– Operating profit EUR 6.4 (11.2) million, 4.5% (7.4%) of turnover
– Net profit was EUR 4.6 (8.0) million
– Earnings per share amounted EUR 0.07 (0.12 it), earnings per share adjusted 0.13

January – June

– Turnover totalled to EUR 272.5 million (H1 2018: 291.3), decrease of 6.5%
– Adjusted operating profit EUR 17.3 million, 6.3% of turnover
– Operating profit EUR 13.3 (21.5) million, 4.9% (7.4%) of turnover
– Net profit for the review period was EUR 9.4 (15.5) million
– Earnings per share were EUR 0.15 (0.24), adjusted earnings per share EUR 0.21

Future outlook

Scanfil changes its outlook for 2019 and expect the full-year turnover to be EUR 580 – 610 million and the adjusted* (not reported) operating profit to be EUR 39 – 42 million in 2019.

*The adjustment items during January-June include expenses related to the acquisition of HASEC-Elektronik GmbH (EUR 0.4 million) and the impairment of Scanfil GmbH’s goodwill (EUR 3.6 million).

Earlier Scanfil estimated, that its turnover for 2019 will be EUR 560 – 610 million and the (reported) operating profit will amount to EUR 36 – 41 million.


Q2/2019 Q2/2018 Change% H1/2019 H1/2018 Change % 2018
Turnover, EUR million 142.6 151.7 -6% 272.5 291.3 -6 % 563.0
Operating Profit, EUR million 6.4 11.2 -43% 13.3 21.5 -38% 37.8
Operating Profit, Adjusted, EUR million 10.3 11.2 -9% 17.3 21.5 -20% 37.8
Operating Profit, % 4.5 7.4 4.9 7.4 6.7
Operating Profit, Adjusted, % 7.2 7.4 6.3 7.4 6.7
Net Profit, EUR million 4.6 8.0 -43% 9.4 15.5 -39% 28.9
Net Profit, Adjusted, EUR million 8.4 8.0 6% 13.4 15.5 -14% 28.9
Earnings per Share, EUR 0.07 0.12 -43% 0.15 0.24 -39% 0.45
Earnings per Share, Adjusted, EUR 0.13 0.12 8% 0.21 0.24 -13% 0.45
Return on Equity, % 12.8 24.3 21.5
Return on Equity, Adjusted, % 18.1 24.3 21.5
Equity Ratio, % 41.7 40.6 47.7
Net Gearing, % 45.6 34.1 19.5
Net Cash Flow from Operations, EUR million 7.4 8.5 -13% 29.0
Employees (Average) 3 476 3 446 1% 3 414

Petteri Jokitalo, CEO of Scanfil plc:

Customer demand picked up during the second quarter. Turnover increased by nearly 10% in comparison with the first quarter and was EUR 142.6 million. The growth was supported by broad customer base. Sales developed favourably in all customer segments, except for Medtec & Life Science. The acquisition of HASEC-Elektronik GmbH in May had an effect of around EUR 1.5 million on turnover in the second quarter.

The Q2 adjusted operating profit level increased, supported by an increase in turnover and it was EUR 10.3 million, or 7.2% of turnover. The reported operating profit (EUR 6.4 million) includes adjustment items of EUR 3.8 million, which consists of expenses related to the acquisition of HASEC-Elektronik GmbH (EUR 0.2 million) and a no cash impacting write-down of goodwill (EUR 3.6 million) related to Scanfil (Hamburg) GmbH. Scanfil Hamburg business have not developed as expected, and there were no grounds for the goodwill on the balance sheet any longer. After this write-down, the goodwill of Scanfil Hamburg has been entirely written down. We are strongly continuing our measures to develop our business operations in Hamburg further. The main focus areas are expansion of the customer base and increasing turnover.

The net cash flow from operations in the quarter was EUR 7.8 million. At the end of the second quarter, Scanfil’s equity ratio was 41.7%, and its net gearing was 45.6%. Scanfil’s financial position is stable.

The acquisition of HASEC-Elektronik GmbH, a German contract manufacturer, was completed on June 17, 2019, and its business operations have since been included in Scanfil’s consolidated financial statement.

With the HASEC acquisition we gained strong electronics factory, local management and sales organization in the centre of German market, as well as many new customers to whom we can offer Scanfil’s global factory and supplier network. I am confident that the HASEC acquisition will significantly accelerate the implementation of Scanfil’s growth strategy in Central Europe.

We trust customer demand to strengthen further during the second half of the year, even though general uncertainty has increased in terms of the world economy and our customers’ expectations. It is clear that under existing increasing uncertainty, it is crucial to keep the company costs under strict control and as flexible as possible. We are changing our outlook for 2019 and expect our full-year turnover to be EUR 580 – 610 million and our adjusted operating profit to be EUR 39 – 42 million in 2019. Expected contribution from HASEC will be about EUR 20 million in sales and EUR 1 million in operating profit.

I am pleased with the level of adjusted operating profit in the second quarter, as well as for the completion of the HASEC acquisition. I want to thank our customers and suppliers for their trust and support, and all our employees for their successful work.

Financial Development

The Group’s turnover for January – June was EUR 272.5 (291.3) million, decrease of 6.5% compared to the corresponding period of the previous year. The most significant decrease was recorded for the Consumer Applications customer segment, with its turnover falling by EUR 11.1 million, or 28.7%. The decrease was due to a change in demand for a single customer’s products. The Group’s operating profit for January – June was EUR 13.3 (21.5) million, 4.9% (7.4%) of turnover. The operating profit includes adjustment items of EUR 4.0 million, which consists of expenses related to the acquisition of HASEC-Elektronik GmbH (EUR 0.4 million) and a write-down of goodwill (EUR 3.6 million) related to Scanfil GmbH’s business operations. The business operations of Scanfil GmbH, a German subsidiary acquired in 2014, have not developed as expected, which is why the company has recognised a write-down based on impairment testing. The adjusted operating profit was EUR 17.3 million, or 6.3% of turnover. The adjusted operating profit decreased by 19.6% year-on-year. The decrease in the operating profit mainly resulted from the decrease in turnover. The net profit for the review period was EUR 9.4 (15.5) million.

Earnings per share for the review period were EUR 0.15 (0.24). Return on investment was 12.7% (22.7%). The weaker key figures are mainly due to the adjustment items mentioned above and a decrease in the operating result in comparison with the previous year.

The Group’s turnover in April–June was EUR 142.6 (151.7) million, and its operating profit was EUR 6.4 (11.2) million, or 4.5% (7.4%) of turnover. The second-quarter operating profit includes EUR 0.2 million in acquisition expenses related to HASEC-Elektronik GmbH and an impairment of goodwill of EUR 3.6 million. The adjusted operating profit was 10.3 EUR million, or 7.2% of turnover. The result in April–June was EUR 4.6 (8.0) million.

The business operations of HASEC-Elektronik GmbH have been consolidated with the Scanfil Group since June 17, 2019. This had an effect of EUR 1.5 million on the Group’s turnover and an effect of 0.0 million on its net result during the review period. The purchase price was EUR 10.3 million, from which EUR 3.8 million was preliminarily allocated to long-term customer relationships, where net deferred tax liabilities were EUR 1.1 million and EUR 1.6 million was recognised in unallocated goodwill. Information on the acquired net assets is provided in the tables of the interim report.

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s half year financial report 1 January – 30 June 2019 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


Petteri Jokitalo

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

Distribution NASDAQ OMX, Helsinki
Major Media

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 11 production units in Europe, Asia and North America. The total number of employees is about 3,700.

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.