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.
