Teleste’s first quarter profits have taken their predicted hit, but the Finnish tech firm and cable plant supplier says its order book is growing once again.
Net sales increased by 0.5 per cent to €60.9 million, profits plunged by 91.9% to €200,000.
“The first quarter was difficult for Teleste, as expected,” said CEO Jukka Rinnevaara. “The order backlog was low at the beginning of the year, and the profitability improvement programme of the services business in Germany required investments. Towards the end of the quarter, the number of orders received increased and the order intake improved year-on-year.”
Rinnevaara said the company’s operating profit was was “burdened by investments” in business development in both its business areas.
Orders received by Video and Broadband Solutions increased, particularly in video security and information systems.
Net sales of Network Services improved year-on-year, but operating profit was predictably negative. The losses were incurred in Germany, where deliveries of services that included subcontracted excavation work showed a loss and the profitability of other services did not reach the target level.
