SCANFIL PLC STOCK EXCHANGE RELEASE 21 February 2012 at 11.30 A.M.
SCANFIL PLC’S OUTLOOK FOR 2012
Scanfil plc formed in the partial demerger of Sievi Capital plc executed on 1 January 2012, in which the contract manufacturing business (Scanfil EMS Oy group) was demerged into a new publicly listed company.
Due to the continued uncertain situation in the global and European economy, the predictability of the contract manufacturing market is very poor, and it is not possible to provide a reliable outlook for the year. The demand for telecommunications products decreased significantly during the latter half of last year. Based on the current outlook, the demand for telecommunications products is expected to fall clearly short of the previous year. The demand for professional electronics is expected to be on par with 2011.
According to Scanfil’s current view, full-year turnover and operating profit will decrease clearly compared to 2011 (Scanfil EMS Oy group’s turnover for 2011 was EUR 210.8 million and operating profit EUR 9.1 million). The result for the first quarter will be negative due to factors such as the weak seasonal demand, expected adaptation costs and the demerger and listing costs. Full-year operating profit is, however, expected to be clearly profitable.
Sievi Capital plc has announced its own outlook in a stock exchange release published on 21 February 2012.
RISKS AND UNCERTAINTIES OF BUSINESS
The most significant short-term risks are related to the continuing uncertainty of the world economy. Growth has slowed down in Asia, the US economy is clearly unbalanced, and in Europe investments are made cautiously and inventories and production are being run down. These factors may decrease the demand in the contract manufacturing market and have a negative impact on the development of Scanfil’s turnover and profitability. The company’s risks and risk management are described in greater detail on the company’s website under Corporate Governance.
CEO Harri Takanen
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Scanfil Group is engaged in contract manufacturing for international telecommunications technology and professional electronics manufacturers.
Scanfil has 35 years of experience in demanding contract manufacturing. Scanfil is a systems supplier that offers its products and services to international telecommunications systems manufacturers and professional electronics customers. Typical products are equipment systems for mobile and public switched telephone networks, automation systems, frequency converters, lift control systems, equipment and systems for electricity production and transmission, analysers, slot machines and different meteorological instruments. The company has production facilities in China, Estonia, Hungary and Finland.
The associated company of Scanfil Group:
Greenpoint Oy (Scanfil EMS Oy’s share of ownership 40%) focuses on development and supply of solutions and equipment, which improve placements, visibility and sales of customer products in the Point-Of-Sale. The Greenpoint product portfolio includes a large variety of refrigerated merchandisers, displays and integrated check-out zone concepts. The company serves both brand owners and retail chains internationally. Along with the European markets Greenpoint Oy has entered North and Latin American markets through partnerships. www.greenpoint.fi