Incap Corporation | Inside information 11 November 2020 at 10.00 a.m. (EET)

Incap increases its operating profit estimate for 2020

Due to better visibility for the full-year performance, Incap revises its outlook for 2020. Incap estimates that the revenue for 2020 will be significantly higher than in 2019 and the operating profit (EBIT) in 2020 will be higher than in 2019. The previous outlook published in the half-year financial report estimated that the revenue for 2020 will be significantly higher than in 2019 and operating profit (EBIT) in 2020 will be approximately on the same level as in 2019.

The increase in the estimated operating profit (EBIT) is based on good development primarily at the Indian factory. After the COVID-19 pandemic related closure of the Indian factory, the backlog has been cleared and the demand from some existing customers has increased more than previously estimated. The estimated revenue growth is mainly driven by the AWS Electronics Group acquisition finalized in January 2020.

In 2019, Incap’s revenue amounted to EUR 71.0 million and the operating profit (EBIT) was EUR 10.1 million. In January-June 2020, the company’s revenue amounted to EUR 46.9 million and the operating profit (EBIT) was EUR 4.3 million.

The estimates are given provided that there are no major negative changes in the COVID-19 pandemic situation, currency exchange rates or in component availability and they are based both on Incap’s customers' forecasts and the company's own assessments of the business development.

Incap’s outlook for 2020 as published on 26 August 2020:

“Following the acquisition of AWS Electronics Group in January 2020, Incap estimates the revenue for 2020 to be significantly higher than in 2019. Considering the impact from the acquisition of AWS Electronics Group, the one-time integration and transaction costs, the PPA amortization, as well as the pandemic related factory closure, the operating profit (EBIT) is estimated to be approximately on the same level as in 2019.

The estimates and forecasts contain significant uncertainty related to the COVID-19 pandemic. The estimates are given provided that there are no major changes in currency exchange rates or in component availability and they are based both on Incap’s customers' forecasts and the company's own assessments of the business development.”

Incap’s Business Review for January–September 2020 will be published on 25 November 2020.

INCAP CORPORATION

For additional information, please contact:
Otto Pukk, President and CEO, tel. +372 508 0798

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INCAP IN BRIEF

Incap Corporation is a trusted partner and full-service provider in Electronics Manufacturing Services. As a global EMS company Incap supports customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain. Incap offers state-of-the-art technology backed up by an entrepreneurial culture and highly qualified personnel. The company has operations in Finland, Estonia, India, Slovakia, the UK and Hong Kong and employs approximately 1,300 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.