Neways sees BuS acquisition boost turnover in Q3

The increase was entirely due to the completed acquisition of BuS Group, which has been consolidated in Neways results as from 1 July. Organic turnover fell 15% to EUR 58.2 million. This drop in organic turnover had a negative impact on profitability. “The EMS market continues to see strong fluctuations in demand across the year, with clients postponing planned contracts and adjusting their production planning more frequently and more abruptly. This accounted in part for the decline in demand Neways saw in the third quarter, in particular from the semiconductor sector. The postponement of planned contracts and adjustments of plans by clients creates an imbalance in capacity utilisation across the various Neways operating companies and therefore puts pressure on margins,” the company writes in a press release As expected, BuS made a positive contribution to turnover and profit in the third quarter. The automotive sector, where BuS Group has the bulk of its activities, had a solid quarter. The acquisition of BuS Group will also result in a more balanced market sector distribution which will contribute to a more stable turnover and reduce fluctuations in results across the year.