Swedish injection moulder Nolato (Torekov; www.nolato.se) has reported an operating profit (EBITA) of SEK 194m (EUR 21m) for the first half of 2014, down from SEK 233m in the same period of 2013. Sales were down 21% year-on-year to SEK 1.90 bn. However, first half operating margin based on EBITA was up to 10.2% from 9.6% in the first six months of 2013. The company said that the improved margin resulted from a continued focus on efficiency improvements, favourable product mix and a flexible cost structure, especially in Asia.

While the medical and industrial businesses recorded year-on-year changes in operating profit and sales of 7% or less, the Nolato Telecom business was hit by a downturn in China – very high demand in the consumer market for a number of models which contributed to high sales in H1 2013 was not repeated in the first half of 2014, leading to a 47% year-on-year fall in EBITA in the business to SEK 53m on sales down 43% at SEK 664m. As a result, the average total number of Nolato employees in the first half of 2014 fell to 6,152 from 10,827 in H1 2013, with the decrease primarily attributable to the Chinese telecoms business, the company said.

Nolato CEO, Hans Porat, said: “Strong profitability has been and continues to be the highest priority, and with a strong financial position we have the prerequisites for investing for the future and continue developing together with our customers. Nolato Medical has completed a new factory in China and the expansion of the plant in Hungary is running according to plan. Furthermore, during the quarter we started a production unit within Nolato Telecom in Malaysia for electromagnetic shielding.”

Looking forward, Porat said the company would continue to invest in growth in Nolato Medical, both organic and through acquisitions. In the telecom business it plans to strengthen its niche position with technically advanced solutions and in EMC electromagnetic shielding and in telecoms, and it will develop positions with larger selected customers in northern and central Europe within Nolato Industrial.