Neways reports higher turnover and results in 2017
Neways Electronics International N.V. (Euronext: NEWAY) (“Neways” or the “Company”), today announces its results for the financial year ending 31 December 2017.
Net turnover rises to € 438.7 million, up 11.6% compared with the previous year, largely on the back of a stronger contribution from the semiconductor and automotive sectors.
Order intake up 21.3% compared with 2016, largely driven by new orders in the semiconductor, automotive and industrial sectors.
Order book increased to € 263.6 million at year-end 2017, from € 191.3 million at year-end 2016.
Gross margin came in at € 171.3 million, 11.4% higher than in 2016 on the back of higher activity levels.
The normalised operating result came in at € 15.3 million in 2017, 20.5% higher than in 2016. The activity level increased more rapidly than expected, particularly in the second half of 2017. This resulted in an increase in the hiring of temporary staff and initially reduced operational and process efficiency. This combined with start-up and onboarding effects and shortages in the components market partly offset the improvement in results. Neways also invested in its organisation during the year, to facilitate the (cost) efficient completion of larger and more complex projects.
Net income was 2.1% higher at € 9.9 million, as a result of the improved operating result and reduced financing costs. This was largely mitigated by a higher tax rate in 2017. Net result in 2016 was positively impacted by a recognition of a tax claim in Germany of € 1.8 million compared to € 0.6 million in 2017.