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Neways Electronics International N.V. publishes the trading update for the third quarter (Q3) and the first nine months (9M) ending 30 September 2018.
- Net turnover came in at €126.0 million in Q3 2018, an increase of 16% compared to Q3 2017. Turnover in the first nine months of 2018 amounted to €373 million, up 15.6% compared to the same period of 2017. Strong demand across the board and especially in the semiconductor and automotive sectors
- Order intake down in Q3 2018, but remains at a relatively high level
- Growth potential not fully realized due to persistent shortage of components
- Well-stocked order book and improvements realized in operational management expected to contribute to expected increase in turnover and profitability in the full year 2018 compared to 2017
Developments Third Quarter
Neways recorded fully organic year-on-year growth in net turnover of 16%. The semiconductor and automotive sectors made particularly strong contributions to turnover growth. Turnover in the medical and industrial sectors remained unchanged compared to Q3 last year.
Order intake showed a year-on-year decline of 18% in the third quarter compared to the very high level in the same period in 2017. The order book stood at €297.7 million at the end of September 2018, which constitutes a 19.8% increase compared to the end of September 2017. The increase in the order book is the result of stronger demand from clients in the automotive, industrial, semiconductor and medical sectors.
The book-to-bill ratio stood at 1.09 at end-September 2018.
Huub van der Vrande: “The positive trend of the first half of the year continued in the third quarter. Turnover and order book once again increased when compared to the third quarter of 2017. We are also making progress in those areas where there is clear room for improvement. Streamlining the perational processes, focus on first-time-right, smarter purchasing and improved inventory management remain key priorities in that respect.
Addressing these issues will enable us to do more justice to our role as the technological and logistics partner for large multinationals in the manufacturing industry, while at the same time making better use of our profit potential. There are additional challenges, too, particularly in the form of the continued shortages of certain components and a shortage of technically trained personnel. Nevertheless, the outlook is still positive and we expect to continue to record growth in the remainder of the year. For the full-year 2018, we expect higher turnover and improved profitability.”
Neways Electronics International N.V. (Neways) is an international company active in the EMS 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 semiconductor, medical, automotive, general industry and defence industries. Neways has operating companies in the Netherlands, Germany, the Czech Republic, Slovakia and China, with a total of 2,792 employees at year-end 2017. Neways recorded net urnover of €438.7 million in 2017. Neways shares are listed on the Euronext Amsterdam stock exchange. For more informatio, click here.