Keywords
Citation
(2001), "PCB maker Gul Technologies reported a 46 percent increase in sales", Circuit World, Vol. 27 No. 1. https://doi.org/10.1108/cw.2001.21727aab.021
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
PCB maker Gul Technologies reported a 46 percent increase in sales
PCB maker Gul Technologies reported a 46 percent increase in sales
Keywords Gul Technologies, Market trends
PCB maker Gul Technologies reported a 46 percent increase in sales but only a 3 percent growth in net profit. Sales were $118.7 million for the first six months ended 30 June, while net profit was $8.5 million. Gul said its profits were hurt by start-up costs and extensive product certification with key customers in Suzhou. Its US plant was hurt by a bad winter, facility renovations and a failure of production equipment. The plant is projected to be fully operational this quarter when new equipment is in place.
The company attributed its higher sales to increased telecommunications and network segment shipments that it supported with the Suzhou plant, which began commercial production in January this year.
Its largest markets – the USA, Europe and Latin America – accounted for 84 percent of its sales. Gul said it has targeted higher value-added products with better margins in the telecommunications and networking/Internet sectors. The telecommunications and network sectors contributed nearly 70 percent of Gul's turnover, while sales to the personal computer and peripherals segments accounted for only 3.4 percent. Recently, Gul shipped the first lot of high valued-added 16-layered PCBs to its key US customers.
Jerry Rodrigues, Gul's president and chief executive officer, said: "We are proud to be among the select few Asian PCB manufacturers to have this capability".
Gul expected its margins and profitability, as well as its overall performance, to improve in the second half. It cautioned that the global PCB market would continue to be fast-paced and the company will continue to be subject to pricing pressures and increasing competition.