Q3/2020: Solid Performance in Exceptional Environment

July – September

– Turnover totalled EUR 141.6 million (Q3 2019: 152.3), decrease of 7.0%
– Adjusted operating profit EUR 9.9 (12.1) million, 7.0% (7.9%) of turnover, decrease of 18.1%
– Operating profit EUR 21.2 (12.1) million, 15.0% (7.9%) of turnover, increase of 76.1%. Operating profit
includes a non-recurring capital gain from the sale of Hangzhou factory of EUR 11.4 million
– Net profit was EUR 18.0 (8.8) million
– Earnings per share were EUR 0.28 (0.14), adjusted earnings per share EUR 0.12 (0.14)

January – September

– Turnover totalled to EUR 441.3 (1-9 2019: 424.8) million, increase of 3.9%
– Adjusted operating profit EUR 28.7 (29.3) million, 6.5% (6.9%) of turnover, decrease of 2.3%
– Operating profit EUR 40.1 (25.3) million, 9.1% (6.0%) of turnover. Operating profit includes a non-recurring
capital gain from the sale of Hangzhou factory of EUR 11.4 million
– Net profit for the review period was EUR 33.8 (18.3) million
– Earnings per share were EUR 0.52 (0.28), adjusted earnings per share EUR 0.36 (0.35)

Future outlook

Scanfil updates it’s outlook and estimates that its turnover for 2020 will be EUR 590 – 610 million and adjusted operating profit EUR 38 – 40 million.

Earlier estimate:
Scanfil estimates that its turnover for 2020 will be EUR 580 – 620 million and adjusted operating profit EUR 38 – 42 million.

The 2020 guidance is subject to exceptional uncertainty due to the potential negative effects of the coronavirus pandemic on customer demand, supply chain capacity as well as the safety and operational capability of our own factories and personnel.

Key figures

Q3/2020 Q3/2019 Change% Q1-Q3/2020 Q1-Q3/2019 Change % 2019
Turnover, EUR million 141.6 152.3 -7.0% 441.3 424.8 3.9% 579.4
Operating Profit, EUR million 21.2 12.1 76.1% 40.1 25.3 58.1% 35.3
Operating Profit, Adjusted, EUR million 9.9 12.1 -18.1% 28.7 29.3 -2.3% 39.4
Operating Profit, % 15.0 7.9 9.1 6.0 6.1
Operating Profit, Adjusted, % 7.00 7.9 6.5 6.9 6.8
Net Profit, EUR million 18.0 8.8 103.5% 33.8 18.3 85.0% 28.1
Net Profit, Adjusted, EUR million 7.5 8.8 -14.9% 23.3 22.3 4.6% 32.1
Earnings per Share, EUR 0.28 0.14 100.0% 0.52 0.28 85.7% 0.44
Earnings per Share, Adjusted, EUR 0.12 0.14 -14.3% 0.36 0.35 2.9% 0.50
Return on Equity, % 26.1 16.2 18.0
Return on Equity, Adjusted. % 18.2 19.5 20.4
Equity Ratio, % 53.3 43.3 49.1
Net Gearing, % 14.4 40.5 27.7
Net Cash Flow from Operations, EUR million 25.9 14.9 74.2% 35.9
Employees (Average) 3 445 3 511 -1.9% 3 530

Petteri Jokitalo, CEO of Scanfil plc:

I am pleased with Scanfil’s solid performance in the third quarter. We succeeded well in our COVID-19 countermeasures, and our profitability development was strong in exceptional circumstances. I am also delighted of the results of the customer satisfaction survey which show that also our customers think we have succeeded in our development work, and Scanfil can even better meet their expectations.

We also proceeded as planned in the transformation of our factory network: the Hangzhou factory was divested in July. In Hamburg, the negotiations were started with the personnel concerning the factory’s possible closing and continuing operations at other Scanfil factories.

Our turnover for the third quarter decreased by 7% from the last year’s strong reference period and was EUR 141.6 million. Turnover mainly decreased in the Industrial and Consumer Applications segments. July and August were quiet, while demand started to pick up in September. The delivery capacity of the supply chain set no significant restrictions on our deliveries.

The adjusted operating profit for the third quarter was EUR 9.9 million, comprising 7.0% of turnover. The achieved result is a solid indication of Scanfil’s flexibility and the capabilities of Scanfil’s personnel. The COVID-19 situation caused rapid changes in customer demand, which could be mitigated by reacting fast and managing costs tightly. Net cash flow from operating activities during this year was EUR 25.9 million, EUR 11 million better than a year earlier.

The sales gains of the divestment of the Hangzhou factory were reported during the third quarter. The sales gains of EUR 11.4 million increase our reported operating profit for the quarter to EUR 21.2 million. The Hamburg factory’s planned closure is expected to result in a one-time cost of approximately EUR 6 million, estimated to occur in either the fourth quarter of the year or 2021, depending on the process’s progress.

The Hangzhou factory’s divestment in July had no significant impact on our turnover for the third quarter as the factory’s major customers have transferred their orders to other Scanfil units for now. However, these sales mainly consist of intermediate sales that have no significant impact on profit.

Scanfil has a strong financial position. At the end of the third quarter, we had around EUR 20 million in cash assets and an unused credit facility of around EUR 56 million. The equity ratio was 53.3%, and net gearing was 14.4%.

Our outlook for the rest of the year has been specified and we estimate the turnover for 2020 will be EUR 590 – 610 million and adjusted operating profit EUR 38 – 40 million. Our estimate is based on our customers’ current demand forecasts.

The COVID-19 pandemic is not over, and it is clear that many uncertainties characterize the future. When times are challenging, it is even more important to focus on the essential: our customers’ needs and the good leadership of our employees. Scanfil’s strong balance sheet withstands these exceptional circumstances in sight and enables the required investments. I believe in Scanfil’s and also our customers’ ability to come out from this situation and become even stronger than before. I am proud of the contribution of our employees and grateful for customers’ trust.

Financial Development

Scanfil EMS Oy, a subsidiary of Scanfil plc, divested all shares in the Chinese subsidiary Scanfil (Hangzhou) Co., Ltd. at a price of EUR 18.4 million. The terms and conditions of the transaction have been fulfilled, and the transaction became effective on July 14, 2020. The positive impact of the transaction on the operating profit was EUR 11.4 million, of which EUR 7.9 million consisted of equity translation differences.

The Group’s turnover for January – September was EUR 441.3 (424.8) million, increase of 3.9% compared to the corresponding period of the previous year. The turnover of the Communications segment increased by EUR 13.2 million (22.5%) as a result of positive demand for network elements at the beginning of the year. The Consumer Applications segment’s turnover decreased by EUR 18.6 million (23.6%) year-on-year. The negative impact of the coronavirus pandemic was especially reflected in demand in this segment. Demand in the Energy and Automation segment increased by EUR 10.2 million (12.5%). The increase in demand was attributable to several customer relationships. The turnover of the Industrial segment increased by EUR 12.3 million (9.7%), primarily as a result of the HASEC business acquisition completed a year ago. The turnover of the Medtec & Life Science segment remained at the previous year’s level.

The Group’s operating profit for January – September was EUR 40.1 (25.3) million, 9.1% (6.0%) of turnover. The operating profit includes EUR +11.4 million of adjustments related to the divestment of the Chinese subsidiary Scanfil (Hangzhou) Co. Ltd. The operating profit for 2019 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 adjusted operating profit was EUR 28.7 (29.3) million, representing 6.5% (6.9%) of turnover. The adjusted operating profit decreased by 2.3% year-on-year. As a result of the divestment of the Chinese Hangzhou subsidiary, part of the Communications segment’s turnover consisted of intermediate sales with low profitability. The coronavirus pandemic reduced productivity and resulted in additional costs.

The result for the review period was EUR 33.8 (18.3) million, and the adjusted result was EUR 23.3 (22.3) million.

Reported earnings per share were EUR 0.52 (0.28) for the period under review, and adjusted earnings per share were EUR 0.36 (0.35). Return on investment was 24.1% (16.2%). The increase in the reported key figures is mainly attributable to the aforementioned adjustment items.

The Group’s turnover for July – September was EUR 141.6 (152.3) million, showing a decrease of 7.0% from the corresponding period last year. Operating profit was EUR 21.2 (12.1) million, representing 15.0% (7.9%) of turnover. The adjusted operating profit was 9.9 EUR million, or 7.0% of turnover. The operating profit for the previous year’s third quarter did not include any adjustment items. The result for July – September was EUR 18.0 (8.8) million, and the adjusted result was EUR 7.5 (8.8) million.

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Interim Report 1 January – 30 September 2020 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

Webcast Q3 results

In conjunction with releasing our Q3 results, we arrange a webcast on 27 October 2020 at 10.00 am. You can follow the webcast The presentation is in Finnish, and it will be held by CEO Petteri Jokitalo. On-demand recording from the webcast will be available on the company’s webpages later the same day.

The material presented in the webcast will be available around 10.00 am in Scanfil’s webpages


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 over 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 production units in Europe, Asia and North America.

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