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PartnerTech Reports Poor Results on Weak Economy
October 19, 2009 |Estimated reading time: 2 minutes
PartnerTech has announced third quarter 2009 financial results.
Third quarter of 2009 highlights:
- Net sales were SEK 478.3 million (571.1);
- Operating profit was SEK 0.5 million (10.2);
- Loss after tax was SEK -3.6 million (4.7);
- Earnings per share after tax totaled SEK -0.28 (0.37); and
- Cash flow after investments amounted to SEK -3.9 million (34.8).
First nine months of 2009 highlights:
- Net sales were SEK 1,592.0 million (1,877.8);
- Operating loss was SEK -5.0 million (9.2);
- Loss after tax was SEK -16.8 million (-1.4);
- Earnings per share after tax totaled SEK -1.33 (-0.11);
- Cash flow after investments amounted to SEK -4.7 million (33.3); and
- The equity/assets ratio rose to 41.8% (39.6).
Third Quarter Results
Third quarter net sales declined by SEK 92.8 million to SEK 478.3 million (571.1). Sales in the third quarter of 2008 that were related to units that have now been divested amounted to SEK 18.8 million (see the 2008 annual report for a detailed description of divested units). In other words, sales for comparable units decreased by 13.0%. The economic downturn accounts for most of the decline. Also, because of the slow economy, the orders of PartnerTech's customers are placed on shorter and shorter notice. That means greater volatility, thereby creating even more daunting challenges for our operations to meet.
Because of exchange rate changes when translating the sales of foreign subsidiaries, sales boosted by SEK 4.8 million compared with last year. The group's operating profit for the third quarter was SEK 0.5 million (10.2). Operating expenses were down by SEK 83.1 million, and sales were down by SEK 92.8 million, from the third quarter of 2008.
Return on operating capital was 0.2% (4.5) in the third quarter. Loss after tax was SEK -3.6 million (4.7), generating earnings per share after tax of SEK -0.28 (0.37).
Cash flow after investments was SEK -3.9 million (34.8), primarily due to lower profitability.
First Nine Months Results
Net sales for the first nine months of 2009 were SEK 1,592.0 million (1,877.8), a decrease of 15.2% from the same period of 2008. The decline resulted from the general state of the economy, as well as divestment of a number of units and operations. The reduction for comparable units was SEK 200.6 million or 10.7%.
Given fluctuations in exchange rates, sales of foreign subsidiaries were SEK 38.7 million higher after translation than they would have been had rates for the third quarter of 2008 been applied. That corresponds to 2.4% of total sales. The group's operating loss for the first nine months of the year was SEK -5.0 million (9.2). The downturn in the business cycle accounted for the decline.
Return on operating capital was -2.4% (1.3) for the first nine months. Net financial expense was SEK -14.1 million (- 10.2). Unfavorable exchange rate effects were responsible for most of the poorer performance. Loss after tax was SEK -16.8 million (-1.4).
Cash flow after investments was SEK -4.7 million (33.3). The decline from 2008 was due primarily to weaker profitability.
About 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 some 1,400 employees at its plants in Sweden, Norway, Finland, Poland, the UK, the United States and China, PartnerTech reports annual sales of approximately SEK 2.4 billion. PartnerTech AB, the parent company, has its head office in Vellinge, Sweden and is listed on the OMX Nordic Exchange Stockholm. For more information, visit www.partnertech.com.