PartnerTech Interim Report January-June 2014
Continued positive development for electronics, adaptation in Metal Precision reduces operating profit
During the quarter orders from our larger defense customers have continued to decrease. We have therefore initiated a major restructuring program in order to increase profitability in the Metal Precision Technology division.
The electronics division shows continued good growth but group sales decreased by 6% in the quarter compared to the same period of 2013. Operating profit was SEK -31 million in the quarter, including non-recurring restructuring costs mainly related to the Metal Precision Technology division. With the measures taken, costs are reduced in order to achieve profitability with lower volumes. At the same time we are continuing to focus on non-defense segments such as Oil&Gas where there is great interest in our offering. Although there is great potential for us in this market we are not yet able to compensate for the loss of volumes from defense customers.
Our electronics business continues to develop well and during the quarter we have signed contracts with new customers while volumes from existing customers have grown.
Despite a weak demand within systems integration during the year, we have seen an increase in assignments from customers in the MedTech field. This, together with the restructuring in the Metal Precision division gives us the possibility to improve profitability in the second half of the year.
Leif Thorwaldsson, President and CEO
Second quarter of 2014
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Net sales were SEK 540 million (574)
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Operating profit totaled SEK -9 million (3) including restructuring costs SEK -31 million
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Restructuring costs amounted to SEK 22 million
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Profit/Loss after tax was SEK -28 million (-4)
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Earnings per share after tax amounted to SEK -2.20 (-0.28)
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Cash flow after investments amounted to SEK -28 million (27)
First half of 2014
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Net sales were SEK 1,087 million (1,128)
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Operating profit totaled SEK -8 million (11) including restructuring costs SEK -30 million
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Restructuring costs amounted to SEK 22 million
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Profit after tax was SEK -30 million (-2)
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Earnings per share after tax amounted to SEK -2.37 (-0.13)
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Cash flow after investments amounted to SEK -43 million (-24)
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The equity/assets ratio was 37% (37) on June 30
For complete report, see attached file.
For more information, please contact:
Leif Thorwaldsson, President and CEO, Tel: +46 (0) 40 10 26 41
Åke Bengtsson, CFO, Tel: +46 (0) 40 10 26 42
PartnerTech AB is obligated to make the disclosures in this report public pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for public disclosure at 8.30 am on July 16th, 2014.
PartnerTech is a global industrial partner offering customized solutions throughout the product lifecycle, from product development to manufacturing and aftermarket services, in a number of market areas such as MedTech and Oil&Gas. With approximately 1,400 employees at its plants in Sweden, Norway, Finland, Poland, the UK, the United States and China, PartnerTech reports annual sales of more than SEK 2.2 billion. PartnerTech AB , the parent company, has its head office in Malmö, Sweden, and is listed on the Nasdaq OMX Stockholm Exchange. For more information www.partnertech.com.
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