Neways average payment from customers is longer

According to a press release issued Thursday, Neways Electronics International N.V. has, as expected, realised a substantially lower turnover in the first four months of 2009 compared with the same period of 2008. Despite the now reduced cost levels, the first four months showed a negative operating result, although a slightly positive operating result was recorded in March. The order portfolio remained reasonably stable in the first four months, although developments in the Electronic Manufacturing Services market remain uncertain. The impact of the lower turnover on the results has been reduced as much as possible by cost reductions Neways has introduced, which include an internal reorganisation and a reduction of temporary workforce. In the past months, Neways has made solid progress in this respect and the cost base has now been reduced to the break-even turnover level as presented at publication of the annual results. The still ongoing cost reduction programme will result in a further reduction of the break-even level this year. Neways’ financial position, with a solvency ratio amply above 40%, remains strong, while the average payment term from customers is longer, Neways noted in the press release.