Alent plc, created in December 2012 by the de-merger of the electronics assembly materials and plating chemicals businesses of the Cookson group, announced a small increase in profits last year despite a decline in electronics industry production and falling bar solder sales volumes. Net sales value (NSV, equal to product sales minus tin and precious metals costs) for the Assembly Materials division amounted to UK£208 million, up by 2.3% year-on-year at constant exchange rates. The division includes solders and related products. The division operating profit margin on NSV rose from 25.1% to 28.2%.
In a statement Alent noted that “In wave solder assembly, NSV increased 2.7% at constant currency. We saw, as expected, a continuing shift away from the older printed circuit board assembly process to the newer surface mount assembly process. Although overall global bar solder volumes declined 12% as compared to 2011, we were still able to achieve revenue growth, in constant currency, in this segment as a result of continued mix shift toward low silver content alloys and the on-going shift from lead-bearing solders to lead-free alloys. Surface mount assembly products saw an increase in NSV of 8% at constant currency. We shipped a significantly higher volume of lead-free solder paste, being driven by demand from the smartphone, tablet and laptop computer segments from OEMs, as a result of our on-going OEM marketing and selling strategy.”
Looking forward to prospects for 2013, CEO Steve Corbett commented: “Our major global electronics end-markets are expected to return to positive year on year growth, with more limited growth in global printed circuit board surface area production. This improving market development is likely to be tempered by the continuing macroeconomic headwinds across the Eurozone, especially in the automotive industry. Alent’s strong positions across its selected leading electronics applications and with its end-customers place us in a good position to grow NSV and to further improve returns.”
