Confident start into 2018 - stable dividend - new CEO
Arbon, 11 April 2018 EDAG, a leading independent engineering services provider to the global automotive industry, starts the fiscal year 2018 with confidence. At EUR 340 million, the order backlog at the turn of the year is significantly higher than the previous year's figure of EUR 319 million. The expenditure of automobile manufacturers and their suppliers on research and development remains at a very high level due to the change to alternative drive systems, connected and automated driving as well as new mobility services. New customers and numerous international inquiries give the company a positive outlook and lead it to expect good sales and earnings development.
In the fiscal year 2017, sales increased to EUR 717 million (previous year: EUR 715 million). The adjusted EBIT levels at EUR 32.6 million (previous year: EUR 43.8 million). The adjusted EBIT margin is 4.6% (previous year: 6.1%) with a clearly positive trend in the second half of the year. On 31 December 2017, EDAG had 8,404 employees, an increase of about 1.6 percent compared to previous year (8,270 employees). The Board of Directors and the management will propose the distribution of a dividend of EUR 0.75 per share to the General Meeting on 5 June 2018.
"On the basis of the good order situation and a large number of promising international projects, we are optimistic about the future", says Juergen Vogt, CEO of the EDAG Group. "This leads us to expect an increase in revenues for the current financial year of up to 5 % and an adjusted EBIT-margin of approximately 5-7%. We have set the course for growth and are looking for creative and committed employees. With our exciting projects we offer engineering talents and software developers attractive jobs in an agile environment."
Cosimo De Carlo becomes CEO
"I am delighted that Cosimo De Carlo will join EDAG as CEO, as he is a premier innovator with excellent contacts. He has the ideal profile for successfully implementing the strategic changes at EDAG. Together we will enhance the company's position to tackle the future challenges of the automotive industry", says Thomas Eichelmann, Chairman of the Board of Directors.
In addition to the apointment of Mr. De Carlo as CEO, the Board of Directors decided to extend the appointment of Mr. Harald Poeschke to the Group Executive Management until 31 December 2018.
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 2017, the company generated revenues of EUR 717 million and an adjusted EBIT of EUR 32.6 million. As at 31 December 2017, 8,404 employees (including apprentices) worked for EDAG in 19 countries.
This release contains forward-looking statements. These statements are based on current estimates and projections of EDAG Executive Board and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not be accurate. Many factors could cause the actual results, performance or achievements of EDAG to be materially different from those that may be expressed or implied by such statements. EDAG does not assume any obligation to update the forward-looking statements contained in this release.
End of Media Release
Issuer: EDAG Engineering Group AG
Key word(s): Services