Neways reduces flexible workforce for further solidification

In September, Neways started an accelerated reduction of its flexible workforce by a total of around 120 employees. The Son-based EMS specialist did so “at those facilities in the group where deemed possible.” According to CEO Huub van der Vrande in the company’s third-quarter trading update, “We’re working hard to restore the imbalance within the group that had arisen earlier this year and to improve the structure and standardization of our internal processes, so we can respond more effectively to changes in demand. These adjustments will take time and have an impact on productivity in this phase of the process.”

In the third quarter, Neways recorded a turnover of 132.9 million euros. This fully organic year-on-year increase of 5.5 percent was driven by continuing strong demand from the automotive sector, mainly in the market for e-mobility solutions. Earnings from the semiconductor and medical sectors remained stable, while the company saw a slight increase in turnover from the industrial sector. Order intake was 11 percent lower than in Q3 2018. The order book stood at 319.4 million euros at end-September, a 7 percent year-on-year increase, largely due to the strong demand for system solutions for electric cars.

“In the third quarter, our turnover increased driven by continued strong demand from the automotive sector,” comments Van der Vrande, who’s stepping down as CEO at the end of the year. “This growth was softened by a temporary dip in the demand from the semiconductor sector. The order book is still at a high level. While the order intake did decline, this was largely due to the fact that more accurate orders were submitted. Customers have noted an increase in our delivery performance over the past few months, which has improved the quality and solidity of our order book.”