Electronics Production | November 11, 2005
Neways sharpens full-year forecast
Dutch EMS-provider Neways Electronics International has realized a decrease in turnover in the third quarter of the year compared to the second quarter of 2005.
Based on a moderately optimistic outlook for the coming months, Neways expects turnover to exceed EUR 200 million for the current financial year. Taking into consideration an exceptional charge related to the streamlining of the Ripa organisation, Neways expects a net profit of at least EUR 4 million. The Electronic Manufacturing Services (EMS) market is showing a cautious upwards trend virtually across the board. After a brief recovery in demand from the semiconductor sector in the second half of 2004, the demand in this market segment has declined in the course of 2005. As stated at the publication of the first-half results, these developments have led to a decrease in turnover in the third quarter of 2005 compared to the second quarter of the year. Based on the current improved order intake, Neways is optimistic about the developments in the fourth quarter. There are also positive signals in the EMS market with respect to the longer term. Neways is set to integrate the development activities of Neways Advanced Applications and Hoyte under the new name Neways Technologies B.V. Combining the know-how and capacity allows Neways to further shape the 'one-stop providership' strategy and intensify the cooperation between Neways operating companies and with clients. The development of customer-specific electronic (sub) systems is an important growth area for Neways, with a current total of 60 focused developers, Neways responds to this specific demand in the market.