For the first half of 2020, Neways reports a turnover of 243.0 million euros. This is an 8 percent decline year-over-year, driven by a sharp drop in demand due to temporary closures at automotive clients – in April and May in particular; June revenue was comparable to 2019. The net result just came in positive, plummeting 85 percent YoY to 0.8 million euros. The order book amounted to 252.3 million at end-June, 26 percent less than one year earlier and 13 percent less than end-December. The Son-based EMS specialist experienced no production disruptions at its own facilities, though, thanks to timely action in response to the Covid-19 outbreak.
The semiconductor segment was Neways’ new number-one moneymaker, with a net turnover of 82 million euros in the first six months of 2020 – an 8 percent increase YoY. The industrial sector dropped to second place, going down 6 percent to 78 million euros. Automotive saw a sharp decline of 33 percent, coming in at 51 million. Based on the recovery in turnover in June and the current state of its order book, Neways does see the first signs of recovery there. Medical remained stable at 27 million.
“Covid-19 has had a significant impact on the development of Neways’ results,” comments CEO Eric Stodel. “Closer cooperation in the supply chain and strong cost and cash management enabled us to limit the impact on our business operations and we still managed to record a positive result in an extremely dynamic and challenging six months. In the coming period, we’ll remain focused on managing costs, investments and working capital to protect our profitability and cash position. We’re also working on plans to structurally reduce costs and improve capacity utilization in line with today’s reality.”