Viasystems Sets Revenue Mark in Q2
ST. LOUIS -- Viasystems today reported its contract assembly operations saw a 27% jump in second-quarter revenues on higher demand from almost all sectors.
For the period ended June 30, the company reported net income of $3.6 million down 52% from last year. Net sales were $270.7 million, a company record, up 13.1% year-over-year on strength in most sectors. Operating income was $15.1 million, down from $18.6 million in the second quarter 2010.
"The record level of net sales was consistent with our expectations and reflected the strong backlog of orders on which we have commented for the past several quarters," said chief executive David M. Sindelar. "Our backlog remains strong as we also achieved a record level of bookings during the second quarter.
He noted a "minor" (0.3% sequentially) drop in net sales to military and aerospace customers in the quarter, adding, "We are beginning to hear some news of inventory level corrections from customers in our industrial and instrumentation sector and computer and datacommunications sector."
Electronics assembly sales rose 27% to $55.6 million, while operating income jumped 190% to $2.9 million on broad market demand, offset slightly by a lag in telecommunications.
Printed circuit boards revenues rose 9.9% for the quarter to $215.1 million. Operating income was $12.3 million, down 33% from last year. Demand was higher for automotive, industrial and instrumentation, and computer and datacom products.
The company expects demand to continue through year-end, and expects to continue expansion plans in China. "We anticipate that the third quarter and remainder of the year will reflect the consistently strong demand we continue to see and the full effect of the recently implemented price increase impact, assuming no further material cost increases, coupled with the first phase of capacity expansion projects initiated late in 2010 that went online during the second quarter. We are aggressively implementing the second phase of capacity expansion projects which we announced last quarter, thus enabling us to meet demand for 2012, notwithstanding the Huizhou plant shutdown and the recently announced mandated electricity rationing in China," said Sindelar.de
