Eltek reported 27% growth in North America

28 March, 2016

Annual sales of the Israeli PCB manufacturer declined 11.3%, but 27% leap in North American drove Eltek to profitability. CEO Nissan: “We are poised for growth in 2016”

Annual sales of the Israeli PCB manufacturer declined 11.3%, but 27% leap in North American drove Eltek to profitability. CEO Nissan: “We are poised for growth in 2016”1

Eltek’s 2015 sales totaling $41.4 million showed an 11.3% decrease from 2014. Despite the decrease, the company has presented a significant improvement in the bottom line due to operational re-organization implemented in 2015. The net. Profit of the Printed Circuit Boards producer from Petah-Tikva, Israel amounted to $1.0 Million in 2015, compared to a$2.7 million loss in 2014. The operating profit in 2015 was $1.5 million compared to $903K in 2014.

Yitzhak Nissan
Eltek CEO Yitzhak Nissan

Eltek’s Chairman and CEO, Yitzhak Nissan, said that the results “reflect a significant improvement in Profitability. “We have achieved these goals mainly due to cross organizational steps implemented during 2015, to improve efficiency in all the sectors – production, marketing, sales and customer service.”

The decrease in sales, due weaker sales in the Israeli market, partly offset by increased demand from international customers. Sales in the Israeli market totaled $20.6 million in 2015, compared to $24.8 million in 2014, a 16.9% decrease. Sales to Europe and India have shown a minor decrease as well.

$7.5 million sales in North America

Though sales have decreased, not all is bleak – the company has experienced an impressive increase in North America, the largest PCB market in the world. In 2015, Eltek’s sales in North America totaled $7.5 million, compared to $5.8 million in 2014, a 27% increase. Nissan stated that ITAR license acquired by the company and AS-9100C and NADCAP Electronics standard certifications, helped to penetrate the medical, security and aerospace industries in North America. “I believe that Eltek is well poised for growth in global markets in 2016”.

Eltek is part of the Nistc Group. It manufacture supply advanced solutions in the field of Printed Circuit Boards, and is specialized in complex high quality PCB production (HDI), multi-layered rigid and flex-rigid boards for High-end markets. Last week, its share in NASDAQ lost 6.7% of its value, closing at $1.12 per share.

Israeli PCB market shrinking

Eltek’s report joins PCB technologies report published earlier this month, showing a decrease in local PCB sales. Eltek and PCB Technologies dominate the Israeli PCB market. PCB’s 2015 income totaled NIS303 million, a 16% decrease from 2014. PCB even reduced manpower due decrease in production.

Similarly to Eltek, PCB attributed the decrease in sales to weak demand from the Israeli market, with local producers losing weight compared to foreign producers (imported PCBs). Based on Israeli Customs data, 74% of local demand for PCB is catered by import of Asian, European and American products.

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