In the third quarter, Neways recorded a turnover of 121.2 million euros. This is a 9 percent decrease year over year, largely due to a sharp drop in automotive. For its industrial segment, the Son-based EMS company reports a slight decline, while medical remained stable and semiconductor saw a rise. Turnover was 5 higher than in the second quarter, driven by a recovery in demand in automotive, primarily in e-mobility.
Order intake fell by 18 percent YOY. Neways’ order book stood at 221 million euros at end-September, compared to 291 million at year-end 2019. This decline was due to a drop in demand, largely from automotive and to a lesser extent from industrial. Intake was 5 higher than in the second quarter, pointing to a cautious recovery in demand from automotive clients.
“In the third quarter, we saw a cautious recovery in the automotive sector, primarily in e-mobility,” confirms Neways CEO Eric Stodel. “However, the decline in demand due to the pandemic and the lockdowns was so large in this industry that we won’t be able to make up the decline this year. Due to continued pandemic-related uncertainty, we expect the market to remain volatile in the fourth quarter. We’ll make a number of structural adjustments at certain operating companies to bring the organisation and capacity utilisation more in line with the current environment.”