Neways records lower turnover and profit due to sharp dip in demand in automotive
Son (the Netherlands), 27 August 2020 – Neways Electronics International N.V. (Euronext: NEWAY) (“Neways”; the “Company”) today announces the results for the first half (H1) ended 30 June 2020.
Net turnover declines 8.1% to € 243.0 million driven by sharp decline in demand due to temporary closures at automotive clients, in April and May in particular; net turnover in June at comparable level to 2019;
• Order book declines by 26.4% compared to end-June 2019 and 13.4% compared to end-December 2019, largely due to sharp decline in order intake from automotive sector; order intake at semiconductor remains strong;
• Gross margin drops to 36.6%, primarily due to dip in demand for high-grade automotive components and systems;
• No disruptions in production at own facilities, thanks to timely action in response to COVID-19 outbreak;
• Normalised operating result declines to € 2.2 million, due to lower turnover and margin, partly offset by cost reductions.