Business review

DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2020 DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2020 Detection Technology Q3: Double-digit EBIT despite continued weakness in the security market Net sales decreased by -23.4% to EUR 20.6 million (26.9) Net sales of Security and Industrial Business Unit (SBU) decreased by -43.1% to EUR 10.6 million (18.6) Net sales of Medical Business Unit (MBU) increased by 20.2% to EUR 10.1 million (8.4) Operating profit (EBIT) excluding non-recurring items (NRI) was EUR 2.8 million (5.1) Operating margin (EBIT-%) excluding NRI was 13.4%...

DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2020 President and CEO, Hannu Martola: ”The third COVID quarter presented little surprises and was a sequel to Q2 both in terms of market dynamics and actuals. COVID-19 continued to batter the security market, and the medical CT market had a fair tailwind. Decreasing demand in security applications resulted in a decrease in our year-on-year net sales. Even though our sales decreased, our profitability remained healthy. Good cost discipline regarding fixed costs and the employer’s contribution relief from China improved profitability compared...

DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2020 When writing this report, medical CT demand seems to be continuing strongly, and MBU sales are expected to grow in Q4. We expect the growth in MBU sales to continue in Q1 of 2021, albeit more slowly. The security market is expected to head for growth in Q2 of 2021 at the earliest, and the lower-than-usual growth in the industrial segment is expected to continue at least until the end of 2020. SBU year-on-year sales are expected to decrease in Q4, but we expect to see a positive turn driven by Chinese demand in H1 of 2021. We will...

DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2020 contribution relief in Q3 of some EUR 0.3 million and in the review period January-September 2020 EUR 0.8 million by the local government in China. The company’s net sales decreased by -20.4% to EUR 61.7 million (77.5) in January–September 2020. Operating profit amounted to EUR 6.4 million (13.8), corresponding to 10.3% (17.8%) of net sales. SBU net sales in January–September totalled EUR 33.3 million (52.5), which was -36.4% lower year-on-year. MBU net sales increased by 13.2% totalling EUR 28.3 million (25.0). SBU’s share of net...

DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2020 Detection Technology expects MBU sales to grow in Q4 and to continue to grow in Q1 of 2021, albeit more slowly than in 2020. The security market is expected to head for growth in Q2 of 2021 at the earliest, and the lower-than-usual growth in the industrial segment is expected to continue at least until the end of 2020. SBU net sales are thus expected to decrease in Q4 year-on-year, but the company expects them to improve in H1 of 2021. The COVID-19 pandemic creates extraordinary uncertainty for the global economy and the company's...