Union Tool Estimates 26% Lower PCB Drill Sales for F2009

Union Tool, the world top supplier of printed circuit board drills (PCB drills), plans 230.6 million PCB drill sales for a full fiscal year ending in November 2009, lower by 26% than the previous fiscal year. The firm explained global demand for PCB drills bottomed out in February but the recovery is not so strong yet, at a press conference for a half-year business result on 10 July. Averaged operating rate of Union Tool’s plants is currently around 70%. The demand condition is unforeseeable for the second half year.

PCB drills are used to make holes on printed circuit boards and semiconductor packages. Union Tool’s PCB drill sales dropped down in and after autumn 2008 when electronic appliance market turned down. For a half year from December 2008 to May 2009, the sales especially declined in Taiwan and Shanghai markets, according to the firm.

Union Tool has implemented extra plant closing and overtime work reduction since March as well as inventory adjustment. The firm held 43-44 million PCB drill inventory at the end of May, which lowered to the level almost as much as the current sales volume.

The demand has improved since March thanks to Chinese governmental economy stimulus measure and inventory adjustment progress at customers. Union Tool’s operating rate keeps stably around 70% at present.