EDAG Engineering Group AG: Strong Cash-Flows in Q1 - market dynamics intact - outlook confirmed
Arbon, May 10th 2017. EDAG, leading independent engineering services provider to the global automotive industry, is looking positively towards the future after Q1 figures. Revenues in the first three months of the business year were at 178.1 million Euros after 182.6 million Euros in the previous year. A further growth in the segments Electrics/Electronics and Production Solutions is pleasing. The adjusted EBIT was at 10.7 million Euros (previous year: 12.8 million Euros).
CEO Joerg Ohlsen sees the company as well positioned in the current market environment: "We are currently experiencing an unprecedented upheaval in the automotive sector. Our customers have to simultaneously evaluate and implement invests into new products, new types of drive, connectivity and advanced driver assistance systems as well as mobility services of the future. The budgets for research and development consequently remain on a high level. However, delays in the procurement process and new requirements to service providers like EDAG may arise during this phase. With our international network of locations and our well-trained team, we are able to react flexibly to these requirements. We are consistently adapting to the necessary adjustments in the organization and align EDAG to this challenging market environment. In this way, we can further develop the company in existing but also new fields and take advantage of the opportunities that arise. We are therefore convinced that we will be able to return to the path of growth and achieve the goals set during the year."
The overall market dynamics are intact, so the outlook for EDAG remains positive. This is also borne out by the significantly higher order backlog of 368.2 million Euros than in the previous year (318.9 million Euros). For the current year, the management expects an increase in revenues of up to 5% and an adjusted EBIT-margin of approximately 6-8%.
Outlook to the Annual Shareholder's Meeting
EDAG is an independent engineering services provider to the global automotive industry. The company serves leading domestic and international vehicle OEMs and sophisticated automotive suppliers through a global network of about 60 sites in major automotive centres of the world.
EDAG offers complementary engineering services across its Vehicle Engineering, Electrics/Electronics and Production Solutions businesses. Based on these extensive capabilities, EDAG can support clients across the entire value chain from the original design idea to product development and prototype construction all the way to the delivery of turnkey production systems. As a technology and innovation leader, EDAG also operates established centres of excellence that design landmark technologies for future applications in the automotive industry: lightweight construction, electric mobility, car IT, integral safety and new production technologies.
In financial year 2016, the company generated revenues of EUR 715 million and an adjusted EBIT of EUR 43.8 million. As at 31 December 2016, 8,270 employees (including apprentices) worked for EDAG in 19 countries.
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Issuer: EDAG Engineering Group AG
Key word(s): Services
|Company:||EDAG Engineering Group AG|
|Phone:||+41 71 54433-0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart|
|End of News||DGAP Media|