Aspocomp Group interim report

Strong sales growth continued during Q2 as EPS rises to eur0.26
 
During the second quarter of 2004, Aspocomp increased its net sales by 26% to EUR 52.9 million, while the earnings per share increased to EUR 0.26 (-0.58). Net sales during January-June 2004 increased to EUR 100.5 million (83.2) and earnings per share increased to EUR 0.43 (-0.62).
 
Highlights of second quarter 2004 (all comparisons are year on year to second quarter 2003 results):
 
- Net sales increased to EUR 52.9 million (42.1). Net sales showed rapid growth at ACP Electronics, the Chinese subsidiary of Aspocomp, and at the Finnish PCB factories. The Mechanics and Modules business segment also showed strong growth.
 
- Operating profit increased to EUR 3.8 million (-6.3), representing 7.2% of net sales (-15.0%). The corresponding figure for the previous year includes one-off expenses that amount to EUR 4.8 million. Profitability was particularly improved by the strong increase in volumes.
 
- The profit before tax increased to EUR 3.5 million (-6.6), and earnings per share increased to EUR 0.26 (-0.58).
 
- Cash flow from operations totalled EUR 5.2 million (1.7).
 
- Investments amounted to EUR 3.7 million (4.7). The most significant investments were made to improve technology at the Salo PCB factory.
 
Prospects:
 
- Net sales and earnings in July-September are expected to improve somewhat from the second quarter. Net sales, operating profit and earnings per share for the whole year are expected to be significantly better than in the previous year.
 
 
MAIJA-LIISA FRIMAN, PRESIDENT AND CEO OF ASPOCOMP:
 
"The sales of Aspocomp continued their rapid growth during the second quarter. There was a strong demand for printed circuit boards and for products of the Mechanics and Modules segment, which was slightly better than we expected. In addition to increased deliveries, profitability was also improved by increased productivity of manufacturing processes in China and the increased share of high-tech PCBs in Aspocomp's product portfolio.
 
Our investment in China, which started in 2001, was well-timed, and it has significantly increased our capacity to manufacture HDI/Microvia PCBs. The share of these high-tech PCBs in the PCB segment net sales increased to 60% during the second quarter. During the present quarter, the capacity of our factory in China to manufacture HDI/Microvia PCBs will increase 1.5-fold, thanks to our current expansion investment.
 
The utilization rates of our factories have continued to stay at a good level during the first half of the year. Aspocomp's major challenges for the future include securing business growth possibilities to meet customer needs in a flexible and cost-effective way.
 
Our joint ventures Asperation and Imbera Electronics, which develop new technologies, are currently co-operating with customers in several pilot projects."