Excessive global output of PCBs hurts earnings at Elec & Eltek
Printed circuit board (PCB) maker Elec & Eltek's second quarter net profit slumped by 64.1 per cent to US$4.2 million (S$5.3 million) as excessive global PCB production capacity forced down average selling prices even though operating costs were rising.
Revenue for the three months to June 30 fell by 3.5 per cent to US$131 million.
The group's new Yangzhou plant faced some teething problems in their next phase of production capacity expansion and did not contribute as much sales output as anticipated.
Financial performance was also impacted by the rising minimum wage in China as well as the appreciation of the yuan during the quarter.