SON, THE NETHERLANDS – Neways Electronics reported net revenue of €243 million (US$289.1 million) for the first half of 2020, down 8.1% year-over-year.

Net profit for the six months ended June 30 was €800,000, a decrease of 84.7% year-over-year. Operating profit was €1.9 million, down 77.2%.

The firm experienced sharp declines in demand due to temporary closures at automotive clients, particularly in April and May. Semiconductor orders remained strong, the firm says.

Orders declined 26.4% compared to the end of June 2019, and 13.4% compared to the end of December.

“Covid-19 has had a significant impact on the development of Neways' results,” said CEO Eric Stodel. “The drop in demand for automotive products, driven in particular by the complete production shutdown at a number of our clients in April and May, resulted in an 8% decline in our turnover compared with last year. Closer cooperation in the supply chain and strong cost and cash management enabled us to limit the impact of Covid-19 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 will remain focused on managing costs, investments and working capital to protect our profitability and cash position. We are also working on plans to structurally reduce costs and improve capacity utilization in line with today's reality. In addition, we are continuing to focus on the rollout of our refined strategy. We will continue to strengthen our position in the market as a system innovator and product lifecycle partner, increase our added value and continue to improve our organizational structure and operational processes through our One Neways transformation process. This will enable us to operate more efficiently and effectively as a group in the coming years."

Neways had no disruptions in production at its facilities because of the Covid-19 outbreak.

Ed.: €1 = US$1.19

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