Neways Records Stable Turnover in 3Q

Estimated reading time: 1 minute

Neways Electronics International N.V. has announced its trading update for the third quarter and first nine months ending 30 September 2016.

Net turnover came in flat at €96.5 million for the quarter on a year-on-year basis, with higher sales contributions from semiconductor, automotive and defense sectors, offset by a lower contribution from medical.

For the first nine months, order intake was solid and increased by 8.8% year-on-year. The order book stood at €184.6 million, compared to €161.8 million at end-September 2015 with a book-to-bill ratio of 1.06. The year-on-year increase in the order book was largely due to new orders in the automotive, semiconductors and defense sector and reflects a longer term visibility. Compared to end-June 2016, the order book was at the same level. Similar to last year, the company saw increased short term volatility in the order book as customers are more stringent in inventory control towards the end of the year.

“During the quarter further progress was made with the implementation of our medium-term operational excellence program which we initiated in the second half of 2015. Important steps were taken in key areas as improvement of customer intimacy, standardization of component procurement processes and supplier reduction. As we recognize meaningful enhancements in our organizational efficiency, most of the impact of our efforts in performance are anticipated to become visible in the course of 2017 and the years after. We are fully committed to become the trusted technology partner of our customers at every stage of their products’ life cycle,” said Huub van der Vrande, CEO. “For the full year 2016, we reiterate our outlook and expect to record a higher net turnover and operating result compared to 2015.”

About Neways

Neways Electronics International N.V. (Neways) is an international company active in the EMS (Electronic Manufacturing Services) market. Neways offers its clients custom-made solutions for the complete product life cycle (from product development to after-sales service) of both electronic components and complete (box-built) electronic control systems. Neways operates in a niche of the EMS market and focuses primarily on small to medium-sized specialist series, in which quality, flexibility and time-to-market play a crucial role. Neways products are used in sectors such as the semi-conductor, medical, automotive, telecom and defence industries. Neways has operating companies in the Netherlands, Germany, the Czech Republic, Slovakia and China, with a total of 2,654 employees at 30 September 2016. Neways recorded net turnover of € 374 million in 2015. For more information, click here.