SON, THE NETHERLANDS – Neways Electronics International reported 2019 net revenue up 4.9% to €531.7 million (US$583.6 million). The firm attributes growth to the Automotive sector.
Net income was €8.5 million, a decrease of 41% year-over-year.
EBITDA for the year was €30.3 million, flat with 2018. Operating income was €15.1 million, down 28.1%.
Orders in 2019 were down by 4.1% to €291.4 million compared to 2018.
Net cashflow increased by €20.9 million to €16.4 million, due to a strong reduction in inventories.
“Neways recorded healthy turnover growth in 2019, but at the same time this growth was accompanied by sharp fluctuations in demand,” said CEO Eric Stodel. “This puts high requirements on our internal organization and our business processes. Despite our efforts, Neways was unable to turn turnover growth into healthy profit growth in 2019. The priorities for 2020 are therefore to increase productivity and flexibility, to position technological solutions with higher added value and to improve the agreements with customers to make Neways' operational and financial performance more robust and raise it to a higher level on a structural basis.”
Ed.: €1 = US$1.10