PartnerTech Interim Report January - September 2011

PartnerTech Interim Report January - September 2011

THIRD QUARTER OF 2011

• Net sales were SEK 535.6 million (482.1)

• Operating profit was SEK 10.0 million (-5.3)

• Loss after tax was SEK -0.8 million (-9.5)

• Earnings per share after tax totaled SEK -0.07 (-0.75)

• Cash flow after investments amounted to SEK 2.1 million (-44.9)

FIRST NINE MONTHS OF 2011

• Net sales were SEK 1,684.3 million (1,563.5)

• Operating profit increased by SEK 39.9 million to SEK 18.1 million
(-21.8)

• Loss after tax was SEK -5.0 million (-28.4)

• Earnings per share after tax totaled SEK -0.39 (-2.24)

• Cash flow after investments amounted to SEK 18.0 million (-47.6)

• The equity/assets ratio was 37.6% (36.8) on September 30

A WORD FROM THE CEO

It is with great satisfaction that I can announce that PartnerTech
enjoyed higher profitability, improved asset turnover and solid growth
in the third quarter. This was our fourth successive quarter with a
positive operating margin. Third quarter sales of SEK 535.6 million
reflected improvement in every market area, with the exception of Point
of Sale Applications and MedTech & Instrumentation. Scheduled customer
deliveries that had been postponed from the second quarter also
contributed to the positive sales trend.

In the light of growing global competition, I believe that contract
manufacturers like PartnerTech must be responsive to the increased
demand for flexibility and low-cost production while continuing to
satisfy the needs of customers for cutting-edge technical skills. With
that in mind, in the third quarter we continued our ongoing effort to
improve our processes and raise our level of technical expertise while
adapting our organization and taking advantage of our global
infrastructure to more fully address the needs of our customers. As part
of that strategy, we opened a unit in Cambridge, which now comprises all
of our British operations, including production and a customer center in
the city's technology cluster. The initiative represented in additional
step in upgrading our customer center and completing the consolidation
process in the UK. Capacity utilization at our new ultramodern plant in
Myslowice, Poland continued to increase. Along with the facility's sheet
metal working and systems integration resources, that level of activity
represents an attractive opportunity for new and old customers alike.
Demand for expanded supply chain services is growing in the United
States as well.
Conditions in the contract manufacturing market are generally favorable
at the moment, and the third quarter offered no indications of a
slowdown. Nevertheless, financial uncertainty in global markets makes it
difficult to project future trends. In a scenario where current
financial uncertainty leads to a downturn in the global economy, the
contract manufacturing industry would feel the consequences.

Even if such a scenario were to pan out, however, I continue to believe
that our ongoing internal improvement effort - which we launched in the
wake of the last financial crisis - along with our skills in selected
application areas, not to mention our broad geographic and technical
offering, have brought us a long way towards becoming a stronger and
more competitive organization that is better equipped to take on the
challenges of the future.

Leif Thorwaldsson

President and CEO

For complete report, please see attached file.

For additional information, please call:

Leif Thorwaldsson, President and CEO, tel: +46 40-10 26 41

Åke Bengtsson, CFO, tel: +46 40-10 26 42