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Scanfil reported better net sales than market consensus expected but operating profit came a bit under consensus in Q3. Revenues were supported by robust customer demand and rising material prices. Operating profit was burden by component prices, material availability and costs related to the Hamburg factory production transfer and closure. Cash flow was weak in Q3 due to inventory build-up and component pricing. The company already upgraded its full year guidance on October 13 and the most latest guidance was confirmed in Q3 earnings release. Scanfil expects a strong end demand and increasing material prices for the remainder of the year.
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