Automotive drives Neways results down

In the first quarter, Neways saw its revenue come in at 127.2 million euros. This is a 4 percent decline compared to the same period in 2019, mainly due to lower turnover in automotive, where several OEMs have announced or effected the temporary closure of their production facilities. Order intake fell 41 percent to 118.8 million, again because of the demand drop in automotive – contrasted with a very high intake last year. The order book amounted to 282.7 million at end-March, a 3 percent decline compared to year-end 2019. The Son-based EMS specialist expects COVID-19 to negatively impact H1 results as well.

“Neways has activated a number of contingency plans and mobilized taskforce teams to protect the health and safety of our employees,” comments CEO Eric Stodel. “In addition, we’ve taken a range of precautionary measures to safeguard the continuity of our operating processes, taking into account the expected lower demand in the second quarter as a result of the COVID-19 pandemic. We’ve intensified our cooperation with our clients and suppliers. Where possible, we’re helping each other, with the majority of the initiatives focused on maximizing prevention of disruptions in the chain.”