Neways turnover in line with expectations, order book well filled
Son, 18 October 2021 – Neways Electronics International N.V. (Euronext: NEWAY) (“Neways”; the “Company”) today publishes its trading update for the third quarter and the first nine months ending on 30 September 2021. Neways has brought forward the publication of its quarterly results in connection with the Extraordinary General Meeting of Shareholders related to the current public bid by Infestos, which will be held on Tuesday 19 October.
Net turnover of € 116.0 million, 4.2% lower than in Q3-20 and 1.3% higher than Q2-21; turnover is in line with expectation, partially due to continuing chain disruptions.
Order intake came in at € 137.9 million, a rise of 52.9% compared with Q3-20 and a decline of 22.0% compared with Q2-21; order intake is now normalising after a strong recovery in demand in H1-21.
Order book stood at € 356.1 million at end-September, compared with € 221.2 million at end-September 2020 and € 334.4 million at end-June 2021.
€ mln unless stated otherwise
DEVELOPMENTS IN THE THIRD QUARTER
Net turnover declined by 4.2% in the third quarter, compared with the same quarter last year. Turnover was pressured across all Neways’ activities due to chain disruptions and the scarcity of components, which had a varying impact on each sector, with continued strong demand from the Semiconductor and Medical sectors.
Order intake came in 52.9% higher year-on-year, driven by higher demand in all sectors. After the strong recovery in demand seen in the first half of the year, demand normalised to a certain extent in the third quarter. The order book increased and stood at € 356.1 million at end-September 2021.
Eric Stodel, CEO: “The turnover in the third quarter was in line with expectations. We see that the continued disruptions in the chain are limiting our view of the future and we are working closely with our clients to anticipate and respond to developments as effectively as possible. In addition, we are continuing to target profitable turnover and cost controls.
The outlook for the full year 2021 is unchanged. We expect pressure on turnover to continue in the fourth quarter, due to disruptions in the chain. The shift to offering our clients more high-value and innovative solutions makes us more competitive and will have a positive impact on our profitability. We are seeing an increase in demand for System Innovator solutions and we will continue to invest in distinctive innovative technology in growth sectors, for instance in the field of power electronics and energy conversion.”
This press release is a translation of the original Dutch version. In the event of any inconsistencies, the Dutch version of this press release is leading.