Neways takes a dive despite strong automotive demand

In 2019, Neways recorded a net turnover of 531.7 million euros. This 5 percent year-on-year increase was largely driven by strong demand in automotive, especially e-mobility. Still, the Son-based EMS specialist saw its net result decline by 41 percent to 8.5 million euros, mainly due to costs incurred for starting new projects and responding to strong volatility in customer demand. Order intake was 5 percent lower than in 2018 as order planning by clients was less forward because of the reduced scarcity of components. The order book stood at 291.4 million euros at end-2019, a 4 percent year-on-year decrease.

No longer reported separately, defence is now included in Neways’ industrial segment. As a result, this market sector remained the company’s number-one moneymaker in 2019 with a net turnover of 163 million euros – a 1 percent year-on-year decline on a comparable basis. The automotive sector rose to second place, growing 24 percent to 160 million. Semicon earnings dropped 3 percent to 145 million euros. The medical segment came in at 54 million, a 4 percent decrease.

“Neways recorded healthy turnover growth in 2019, but at the same time, this growth was accompanied by sharp fluctuations in demand,” comments Eric Stodel, the company’s new CEO. “This puts high requirements on our internal organization and our business processes. Despite our efforts, Neways was unable to turn turnover growth into healthy profit growth in 2019. The priorities for 2020 are therefore to increase productivity and flexibility, to position technological solutions with higher added value and to improve the agreements with customers to make Neways’ operational and financial performance more robust and raise it to a higher level on a structural basis.”