© Neways Electronics International Electronics Production | April 16, 2020
Neways sees dip in turnover in 1Q20 – order intake down
The EMS provider recorded an order intake of EUR 118.6 million in 1Q20; a decline of 41.0% mainly due to the demand drop in automotive, which saw a very high intake last year.
In the first quarter, the company’s net turnover declined by 4.3% to EUR 127.2 million, compared to the first quarter in 2019. Neways says that the decline was entirely tied to the lower sales in automotive. This drop was primarily driven by the decline in demand from the automotive sector, where a number of OEMs have announced or effected the temporary closure of their production facilities. The book-to-bill ratio came in at 0.93 in the first quarter, also as a consequence of the lower demand from automotive customers. Order levels are stable looking at the semiconductor- and medical sectors, in industrial there was a small decline. Neways’ order book stood at EUR 282.7 million at the end of the first quarter, a decline of 24.0% compared with end-March 2019 (EUR 372.2 million) and a decline of 3.0% compared with year-end 2019 (EUR 291.4 million). “Neways has activated a number of contingency plans and mobilised taskforce teams to take proactive measures to protect the health and safety of our employees. Our teams delivered an outstanding performance. Thanks to their combined efforts, the vast majority of our staff across the globe have continued their work for our customers in a responsible and safe manner. Safeguarding the health and well-being of our employees and supporting our customers remains our top priority,” says CEO, Eric Stodel, in a press release. “In addition, we have taken a range of precautionary measures to safeguard the continuity of our operating processes, taking into account the expected lower demand in the second quarter as a result of the COVID-19 pandemic. We have intensified our cooperation with our clients and suppliers. Where possible, we are helping each other, with the majority of the initiatives focused on maximising prevention of disruptions in the chain. In the current circumstances and within the parameters we have set, we will continue full steam ahead with the earlier initiated measures to improve our operating processes, safeguard our cash-position and continued roll-out of our strategic initiatives,” Eric Stodel, concludes.