The Netherlands industrial family business VDL has released its financial report for 2019. As expected, the numbers are less than stellar. The company brought in a combined 5.78 billion euros in gross revenue – a drop of 3 percent compared to the year prior. Additionally, the Eindhoven-based business saw a 12 percent decrease in profit for the year, 156 million euros, compared to 2018’s 178 million.
The turbulent year, which includes the cutting of more than 900 positions, is attributed to lower production volumes at VDL Nedcar, a slow start in the semiconductor industry and market uncertainty due to the trade standoff between the US and China. While there have been some positive signs in the first part of this year, with an increase of orders, expectations for 2020 remain low. The company anticipates revenues for the current year to drop below that of 2019 as it expects a continued downturn in the passenger car market, meaning a decrease in sales for both car assembly and the buses & coaches divisions.
“Considering the playing field, we’re satisfied with the course of 2019,” explains president and CEO Willem van der Leegte. “Our significant diversity compensated the loss of turnover of more than 550 million euros at car assembly for approximately 400 million euros through our other activities. However, we must remain vigilant so that we’re able to deal properly with future fluctuations as well.”