Elma increases order income and net sales and continues transformation process despite lower profitability
CH-Wetzikon, August 15, 2023 – In the first half of 2023, the Elma Group continued its transformation process and significantly increased both order income and net sales. In order to ensure deliveries to serve the high demand for customized system solutions, inventories were deliberately built up and the headcount of new specialists and skills increased. On the other hand, the sharp fluctuations in production volumes due to unreliable supply chains, particularly in the Americas region, had a negative impact on the results.
EBIT include expenses associated with the transformation and related adjustments to the organization and business processes. In order to benefit from the positive market environment, Elma intends to create scalable structures and drive forward the necessary digitalization with a new generation of IT tools (ERP, PDM, CRM). The higher costs associated with these investments led to lower profitability compared with the previous year. While the Europe and Asia regions made positive profit contributions to, the Americas region recorded a loss as a result of the still insufficient supply of important electronic components, higher purchase prices and significantly higher personnel costs. Overall, Elma closes the first half of 2023 with a lower profit compared with the previous year.
Elma Electronic is a global manufacturer of electronic packaging products for the embedded systems market – from components, backplanes, power supply solutions, storage boards and chassis platforms to fully integrated systems. To ensure our integrated solutions are optimized to our customers’ needs, Elma partners with leading board manufacturers in the industry. Elma also provides enclosure solutions and rotary switches for demanding applications for electronic companies. The company has a broad base of proven standard products which can be tailored to individual applications: Elma offers services from the initial concept to volume production. Elma’s reliable solutions, flexibility, and design expertise are key reasons why the leading companies in the world choose Elma time and again.
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