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© Neways Electronics Production | April 23, 2018

Neways kicks off 2018 with higher turnover and order intake

Neways recorded fully organic net turnover growth of 13.7% in the first quarter of 2018, compared with the same period of 2017.
The EMS provider says that the semiconductor and industrial sectors made particularly strong contributions to the higher turnover. Turnover in the medical and automotive sectors remained at the same level as in Q1 of 2017, while turnover from the defence sector declined slightly.

Neways recorded a 15.6% YoY increase in order intake in the first quarter. The order book stood at EUR 281.8 million at the end of the quarter, an increase from the EUR 205.9 million at the end of March 2017. The increase in the order book was largely the result of higher demand in the automotive sector. The book-to-bill ratio stood at 1.14 at end-March 2018.

The increase in order intake and order book reflects continued growth, especially in the semiconductor, industrial and automotive sectors. The order book was also higher than at year-end 2017 (EUR 263.6 million).

“We made a strong start to the year, with substantial growth in turnover and a well stocked order book. We can also be satisfied with the growth in productivity we realised despite the continued pressure on the organisation. As a result of this, costs lagged the increase in activity levels in relative terms, which translated into an improved operating result. This confirms the success of our proposition to OEMs and shows that the improvement programmes we introduced are now paying off,” CEO Huub van der Vrande says in the press release.

While most things seems to be looking up for Neways, Huub van der Vrande points out that the persistent shortages for technically skilled personnel and the shortages on the components market meant the company was unable reach full potential.

“This underlines the importance of more effective, more efficient and smarter operations and therefore the maximization of deliveries from scarce resources. In concrete terms, this means we will have to focus even more on group-wide integration, for instance by making sure that our capacity utilisation is distributed across the entire group. We maintain our outlook for the full year 2018. Neways is in an excellent position to realise a higher net turnover and higher operating result compared to 2017.”

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September 20 2018 3:35 pm V10.9.6-1