Neways sees strong increase in order intake

Turnover was up 15% compared with the same period of 2009 and came in at EUR 56.1 million. The net result for the first three months was positive. Compared to year-end 2009, the order portfolio increased by 14% to EUR 63.8 million. Not only demand from the semiconductor sector has increased in recent months, but the medical sector and other sectors of the Electronic Manufacturing Services market are also recording rises in order intake. In anticipation of the increase in demand, Neways added some 150 people (8%) to its total staff. These were primarily flexible staff, at the operating companies in Western Europe, Eastern Europe and China. Since several of Neways suppliers have been unable to respond to the strong increase in demand immediately and accordance with existing agreements, there is currently some inefficiency in the chain. As a result, cost levels are temporarily higher than desirable. While there is some pressure on working capital due to the strong increase in order and activity levels, Neways remains in a solid financial position. Outlook Based on the current higher order portfolio and the expected continuing upward trend in activities, turnover and results in the second quarter of 2010 will exceed those of the first quarter.