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Written by Chelsey Drysdale
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Wednesday, 22 July 2009 13:04 |
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ESPOO, FINLAND – Elcoteq's second-quarter net sales totaled 436 million euros, down 7% sequentially and 52% year-over-year.
The operating loss was 11.5 million euros, compared to an operating loss of 38.3 million euros in the first quarter, and operating income of $600,000 last year. Personal communications contributed 59% of the firm’s net sales, with home communications making up 16% and communications networks 25%.
Personal communications' net sales have decreased from last year mainly due to manufacturing reallocation decisions made by Nokia, says Elcoteq.
As previously reported by CIRCUITS ASSEMBLY, Elcoteq plans to sell the majority of the machinery, equipment and materials of its Tallinn, Estonia, manufacturing operations to Ericsson. The agreement includes the transfer of the lease agreement. The transaction value is approximately 30 million euros. The deal includes 1,200 of Elcoteq's 1,600 employees in Tallinn.
Third-quarter net sales are expected to decrease slightly sequentially, due to the partial Tallinn business transfer to Ericsson.
1 euro = US$1.4243
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