Inside Information, profit warning: Aspocomp lowers its guidance for 2023 and publishes preliminary information for the third quarter and January-September 2023
October 27 2023 - 1:00AM
Inside Information, profit warning: Aspocomp lowers its guidance
for 2023 and publishes preliminary information for the third
quarter and January-September 2023
Aspocomp Group Plc, Inside Information, October 27, 2023, at
09:00 a.m. (Finnish time)
Aspocomp Group Plc lowers its financial guidance for the year
2023. Aspocomp now estimates that its net sales for 2023 will be
clearly below the 2022 level. The operating result for 2023 is
expected to remain negative. In 2022, net sales amounted to EUR
39.1 million and the operating result to EUR 4.5 million. In its
previous outlook for 2023 (published on July 17, 2023), Aspocomp
estimated that its net sales for 2023 would be below the 2022 level
and its operating result for 2023 would be clearly below the 2022
level. In 2022, net sales amounted to EUR 39.1 million and the
operating result to EUR 4.5 million. Reasoning for the updated
financial guidance: The financial guidance has been updated due
to the slower-than-expected recovery of the Semiconductor segment's
cycle, and the slowdown in investments in several of the company’s
customer segments, mainly due to the rise in interest rates as well
as high inventory levels in different parts of the value chain.
These changes in the operating environment will affect the
development of Aspocomp’s net sales during the end of 2023. In
addition, the planning work to increase production capacity in
Oulu, which the company started earlier with the aim of ensuring
future growth in line with its strategy, has been suspended for the
time being due to the weakening of the demand situation. The
possible continuation of the planning work will be decided on when
it becomes evident that demand for printed circuit boards starts
growing again. The planning work-related costs totaled
approximately EUR 0.5 million. These costs, which are not part of
the usual business, are recorded in the third quarter’s operating
result. Previously, Aspocomp estimated that the cycle of the
semiconductor industry would return to growth at the end of 2023 or
the beginning of 2024. The slow phase of the cycle has been
prolonged, and it is expected that it will swing to growth in the
first half of 2024. A temporary slowdown in the semiconductor cycle
is typical for the industry. The industry's long-term growth
prospects are still strong. In addition, inflation and interest
rates, the risk of recession and the uncertainties posed by
Russia’s war of aggression continue to affect the operating
environment of Aspocomp and its customers in the 2023 fiscal year.
Preliminary information for the third quarter and
January-September 2023 Aspocomp is also disclosing preliminary
information for the third quarter of 2023. Net sales are expected
to be EUR 8.1 million and the operating result is expected to be
EUR -0.7 million. The operating result includes planning work costs
of EUR 0.5 million that are not part of normal business. The net
sales for January-September are expected to amount EUR 26.4 million
and the operating result to EUR 0.0 million. New outlook for
2023 Aspocomp estimates that its net sales for 2023 will be
clearly below the 2022 level and its operating result for 2023 is
expected to remain negative. In 2022, net sales amounted to EUR
39.1 million and the operating result to EUR 4.5 million.
Previous outlook for 2023 (published on July 17, 2023)
Aspocomp estimated previously that its net sales for 2023 would be
below the 2022 level and its operating result for 2023 would be
clearly below the 2022 level. In 2022, net sales amounted to EUR
39.1 million and the operating result to EUR 4.5 million. Aspocomp
is currently observing a 30-day silent period prior to the
publication of its January-September Interim Report. Aspocomp’s
Interim Report for January 1 – September 30, 2023, will be released
on Thursday, November 9, 2023, at around 09:00 a.m. (Finnish time).
For further information, please contact Mikko Montonen, President
and CEO, mikko.montonen(at)aspocomp.com. ASPOCOMP GROUP PLC Board
of Directors Aspocomp – heart of your technology A printed
circuit board (PCB) is used for electrical interconnection and as a
component assembly platform in electronic devices. Aspocomp
provides PCB technology design, testing and logistics services over
the entire lifecycle of a product. The company’s own production and
extensive international partner network guarantee
cost-effectiveness and reliable deliveries. Aspocomp’s customers
are companies that design and manufacture telecommunication systems
and equipment, automotive and industrial electronics, and systems
for testing semiconductor components for security technology. The
company has customers around the world and most of its net sales
are generated by exports. Aspocomp is headquartered in Espoo and
its plant is in Oulu, one of Finland’s major technology hubs.
www.aspocomp.com
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