SON, THE NETHERLANDS – Neways Electronics reported net revenue for the first half of 2021 was €233.8 million (US$275 million), down 3.8% year-over-year.

For the six months ended June 30, EBITDA was €12.2 million, an increase of 33.5% compared to the same period in 2020. Operating profit was €5.4 million, up 180.3%.

The order book increased 32.6% to €334.4 million compared to the end of June last year and 48.6% compared to year-end 2020, driven by a recovery in demand in the automotive sector and continued strong demand in other market sectors. Order intake was up 69%.

Neways won multi-year orders from 13 new clients across all strategic market sectors, with a total revenue value of more than €50 million, which will materialize in the coming years.

Net cash flow was negative €3 million due to higher working capital requirements and extra cash out in connection with the previously announced reorganizations and the settlement of Covid-19-related government support.

“In the first half of 2021, we saw continued recovery of our operating result, due to the effect of the measures taken,” said CEO Eric Stodel. “We are on track with the transformation of our company to OneNeways. Turnover was lower than last year, partly due to disruptions in our international supply chain and our deliberate divestment of less profitable turnover. Our order intake and order book increased strongly, and we decided to tap the flexibility of certain parts of the organization to quickly scale up to meet rising demand. We saw a recovery in demand in the automotive sector, while demand in other sectors, such as semiconductor, medical and industrial, remains strong with a pipeline of 22 prospects with a total turnover potential of more than €120 million. This is on top of the 13 newly acquired clients divided across all our strategic market sectors, with a total turnover value of more than €50 million, which will materialize in the coming years.

“In the second half of 2021, we expect the materials shortages at suppliers, in particular suppliers of semiconductor components, combined with the uncertainties related to the Covid-19 Delta variant, to continue to put pressure on turnover. Nevertheless, in the coming months we expect to be able to deliver more products and innovative systems, which will help us record higher turnover than in the first half of the year. On top of this, we will also see the structural cost savings from the now completed reorganizations in Germany and the Netherlands reflected more clearly in our results. We will continue on the path we set out on last year: Acting as a system innovator, we will focus more and more expressly on delivering higher added value to our clients.”

Neways expects orders to remain at a good level and the order book to remain well filled for the remainder of 2021. The demand in the semiconductor sector remains strong, and the company is seeing a clear recovery in the automotive sector. Medical and industrial clients are also more positive in terms of their planning and projections. Neways is seeing more interest and demand across the board for system innovator solutions.

At the same time, there is still a certain amount of uncertainty regarding the duration and seriousness of the disruptions in the supply chain, which will impact turnover growth and put pressure on margins due to rising purchase prices.

Neways is closely monitoring the developments related to the Delta variant and the impact of these developments on the supply chain.

Ed.: €1 = US$1.18

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