© cacaroot dreamstime.com Electronics Production | October 31, 2017
Growth in turnover and order intake puts Neways back on track
Following the disappointing results in the first half of 2017, EMS provider Neways now have a more positive outlook for the second half of the year after an accelerated turnover growth.
Net turnover for the third quarter of 2017 amounted to EUR 108.6 million, an increase YoY from EUR 95.5 million. Order intake for the quarter ended up at EUR 149.9 million, a steep climb up from EUR 107.2 million during the same quarter last year. Turnover growth accelerated in the third quarter, when compared with the first half of the year. Net turnover increased fully organically by 12.5% in Q3, compared with the same period of last year. Higher contributions to turnover growth were mainly realised in the Semiconductor and Automotive sectors, the company states in a press release. In the first nine months of the year, order intake showed a growth of 9.6%. Especially orders in the Semiconductor, Automotive and Industrial sectors made a strong contribution to the increase in the order book. At end-September 2017, the order book stood at EUR 248.5 million, compared to EUR 184.6 million at end-September 2016. This positive development is also visible in the composition of the order book for 2018. The book-to-bill ratio was 1.15 in the first nine months of 2017. Inventories increased partly due to shortages of certain components in the market and partly due to the start-up of new projects. “After the disappointing results in the first half of 2017, we have a more positive outlook for the second half of the year. Turnover growth accelerated in this past quarter, the order book is well-filled and our operating result has improved,” said CEO Huub van der Vrande. “I am very pleased that we are able show a clear acceleration in the production of e-mobility, after we carried out the development of same in-house under contract from clients. We also see measures from our improvement programme being taken up across the entire group. We are convinced that this will make a positive contribution in the future.” For the full year 2017 the company now expect to record higher turnover and an improved operating result compared to the full year 2016.