Neways returns to profit

Neways recorded a net profit of EUR 3.9 million in the second half of 2013, compared with a net loss of EUR 1.7 million in the same period in the previous year. A relatively weak first quarter and the loss of some turnover in the fourth quarter due to the fire at Neways Electronics Production (NEK) in Kassel, Germany, led to a 3% drop in net turnover to EUR 265.0 million for the full year 2013, from EUR 274.3 million in 2012. However, net profit from ordinary operations for the full year 2013 was considerably higher at EUR 4.7 million, compared with EUR 0.4 million in 2012. The fire at NEK in September and the subsequent decision to not resume production at the Kassel location did on balance following agreement with the insurers not have a material impact on Neways’ results. 1 2013: Excluding the exceptional reorganisation charge for the closure of Neways Electronics Echt (NEE) 2 2013: Excluding the exceptional reorganisation charge for the closure of Neways Electronics Echt (NEE) / 2012: Excluding exceptional write-down of part of the deferred tax asset in Germany “For 2014, Neways is in a solid position. The focus on improvements to the capacity utilisation made an important contribution to the increased flexibility of the group as a whole. Solid progress was made on the working capital management and cash flow management fronts. Net cash flow and the cash position at year-end 2013 were excellent. The (one-off) damages payment of EUR 23.5 million in total from our insurers for the fire at NEK had a considerable positive impact. This payment fully covers the loss in inventories, the lost equipment and operational losses,” the company writes in a press release. Neways’ order portfolio stood at EUR 68.5 million at year-end 2013, a rise of 10% from the EUR 62.5 million recorded a year earlier. image: © Neways