© Neways Electronics Production | April 12, 2019
Neways records higher turnover and order intake in 1Q19
The EMS provider reiterates its forecast 2019 and expects to record higher net turnover and operating result in 2019 compared with 2018.
The company recorded net turnover of EUR 132.9 million in the first quarter of 2019, which is a year-on-year increase of 8.7%. Order intake increased by 31.8% in the quarter, which was largely driven by strong demand from the automotive industry. In the first quarter, Neways recorded an 8.7% year-on-year increase in net turnover, which according to Neways was an entirely organic increase. The semiconductor, automotive and industrial sectors made the greatest contribution to the higher turnover. Turnover in the medical sector was around the same level as in Q1 2018. Order intake increased by 31.8% year-on-year in the first quarter, largely driven by the strong demand from the automotive sector for system solutions for electric cars. The demand from other sectors remained healthy. The book-to-bill ratio stood at 1,51 at end-March 2019. The order book increased to EUR 372.2 million, an increase of respectively 32.1% when compared to end-March 2018 (EUR 281.8 million) and 22.4% when compared to year-end 2018 (EUR 304.0 million). The increase is largely driven by higher demand in the automotive sector and the order book reflects better visibility in the current year, the company states. “We recorded growth in both turnover and our order book in the first quarter. Demand was once again particularly strong in the automotive sector, mainly for e-car system solutions. Our order book is well filled, although we did see some reluctance in some areas of the market due to macro-economic developments,” says CEO, Huub van der Vrande. “The strong demand and high activity levels, in combination with the scarcity on the market for components and the start-up of new projects once again put a good deal of pressure organisation, as it did last year. This means we need to remain alert and disciplined to follow our clients’ order patterns as efficiently as possible. For the full year 2019, we are well positioned to record higher turnover and operating result than in 2018,” Huub van der Vrande continues.