Outsourcing policy helps Cork-based electronics supply firm return to profit

PCH International, which delivers electronics supply chain services for some of the best-known global companies, returned to profit last year.

Results for the year ended December 31, 2009, show profits before tax of $1.4 million (€1.1m) were achieved against losses the previous year of $4.3m (€3.38m).

The group is headquartered in Cork, where it was founded by Liam Casey, group chief executive, in 1996.

Over 1,000 are employed, including 338 professional staff, in seven countries, as well as 600-plus warehouse and operations staff in China.

Its low cost base and a policy of outsourcing has helped the quick return to profits, he said.

The strong surge in its order books has also helped deliver the better figures.

The large jump in sales, which rose to $152.6m from $114.2m, also boosted earnings. The business has grown rapidly because China has evolved with the electronics sector. It now produces high quality product to satisfy the global players in a competitive market.

PCH is projecting “multi- billion” dollar sales within a few years and one of the its next steps will be a listing, most likely in Hong Kong, which Casey says is receptive to the business they are in.

Revenues of $380m are expected in 2010 as demand for the group’s services continues to climb.

PCH has evolved from a pure sourcing business into one operating full-blown electronics supply chain services for some of the best known brand names operating in the consumer end of the market.

On manufacturing it works closely with product design and development teams, factory owners, floor managers and line operators as well as the client’s planning staff, scheduling personnel, product marketing and distribution teams.


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