SON, THE NETHERLANDS – Neways Electronics reported third quarter sales of €116 million, up 1.3% sequentially but down 4.2% from a year ago, due in part to ongoing supply chain disruptions.
The results for the period ended Sept. 30 were in-line with expectations, the EMS firm added.
Orders rose 52.9% over last year to €137.9 million but fell 22% from the previous quarter. The firm said orders are normalizing after a strong recovery in demand in the first half. The order book was €356.1 million at the end of September, up from €221.2 million last year and €334.4 million in June.
The company's book-to-bill ratio was 1.19, up from 0.74 last year.
During the quarter, Neways saw supply chain disruptions affect all its end-markets to varying degrees. It said sales were strong in the semiconductor and medical sectors.
“The turnover in the third quarter was in line with expectations. We see that the continued disruptions in the chain are limiting our view of the future and we are working closely with our clients to anticipate and respond to developments as effectively as possible," said Eric Stodel, CEO, Neways, in a press release. "In addition, we are continuing to target profitable turnover and cost controls.
"The outlook for the full year 2021 is unchanged. We expect pressure on turnover to continue in the fourth quarter, due to disruptions in the chain. The shift to offering our clients more high-value and innovative solutions makes us more competitive and will have a positive impact on our profitability. We are seeing an increase in demand for System Innovator solutions and we will continue to invest in distinctive innovative technology in growth sectors, for instance in the field of power electronics and energy conversion.”