Electronics Production |
Neways: reorganization put pressure on Q3 profitability
Neways Electronics International N.V. recorded turnover of EUR 69.2 million in the third quarter of 2011, an increase of 4.5% compared with the same period of 2010, however the reorganisation at Kassel has placed pressure on profitability.
The drop in demand from the semiconductor industry was offset by an increase in demand from the medical industry. The order portfolio stood at EUR 71.5 million as per 30 September, up 4% compared with 30 June 2011, the company said.
Due to the reorganisation at Kassel, the company will continue to experience pressure on profitability in the second half of 2011 according to the company. The Kassel organisation is being redesigned, staff reduced and partly replaced. The total one-off reorganisation charge is around EUR 1.2 million (gross = net) and will be charged to the second half results.
For the full year, it is expected that the operating result (excluding restructuring charge), will increase compared to 2010. Neways expects full-year net profit (excluding restructuring charge) to be more or less at the same level as in 2010, due to the higher tax burden.
