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Neways Electronics International N.V. today announced its trading update for the first quarter ending 31 March 2017.
- Q1-17 net turnover at € 107.6 million, up 9.5% year-on-year
- Order intake up 13.1% year-on-year for Q1-17
- Higher activity levels fuelled by demand for early stage development and co-engineering activities
- FY-17 outlook reiterated: higher net turnover and operating result anticipated compared to FY 2016
First Quarter Developments
In the first quarter, net turnover increased fully organically by 9.5% on a year-on-year basis, with higher sales contributions from semiconductor, automotive and defense sectors. Sales in industrial and medical sectors remained approximately stable. Supported by the application of its life cycle management tool, Neways is gradually intensifying partnerships with several existing (long term) customers, while at the same time new customer leads are generated.
During the first quarter the order intake increased by 13.1% year-on-year. The order book stood at €205.9 million, compared to €177 million at end-March 2016 with a book-to-bill ratio of 1.10. The increase in the order intake and order book reflects continued growth, particularly in the Semiconductor and Automotive sectors. The order book is also higher compared to year-end 2016 (€191.3 million).
Huub van der Vrande, CEO, commented, "We saw a busy, good start of the year. Order intake and turnover showed healthy growth which was partly driven by increased early stage involvement in development and co-engineering of electronic components and control systems. This reflects our improved recognition as trusted partner and one-stop-provider for product life cycle management for OEMs and demonstrates the added value, flexibility and cost-effective solutions we offer our customers.
In the quarter, we also continued the roll out of our group-wide improvement programme 'Up to the next level' which has resulted in further improvements of operational processes and efficiency gains. These improvements were offset by higher staff costs, due to the increase in engineering activities and related team expansion as well as high utilization of our production staff flex pool. We will monitor these developments and the effects they have on the business closely. For the full year 2017, we reiterate our outlook and expect to record a higher net turnover and operating result compared to 2016."
Neways Electronics International N.V. (Neways) is an international company active in the EMS (Electronic Manufacturing Services) market. Neways offers its clients custom-made solutions for the complete product life cycle (from product development to after-sales service) of both electronic components and complete (box-built) electronic control systems. Neways operates in a niche of the EMS market and focuses primarily on small to medium-sized specialist series, in which quality, flexibility and time-to-market play a crucial role. Neways products are used in sectors such as the semi-conductor, medical, automotive, telecom and defence industries. Neways has operating companies in the Netherlands, Germany, the Czech Republic, Slovakia and China, with a total of 2.612 employees at 31 December 2016. Neways recorded net turnover of € 393 million in 2016. Neways shares are listed on the Euronext Amsterdam stock exchange (symbol: NEWAY). For more information, click here.