EDAG Engineering Group AG: Very strong first half of 2018 - Significant increase in sales and earnings - Strategic growth program "REinvent" presented
Arbon, 22 August 2018. EDAG, a leading independent engineering services provider to the global automotive industry, published the figures for the first half of 2018, today. Revenues amounted to 391.1 million Euros, around 11% higher than the previous year's figure of 352.7 million Euros. Adjusted EBIT amounted to 22.7 million Euros, an increase of more than 50% compared to 2017 (15.1 million Euros). The international business in particular contributed to the strong growth in the first half of the year.
The other key figures of the EDAG Group also developed positively. Free cash flow increased significantly from -9.7 million Euros to 10.4 million Euros. Net financial debt decreased to EUR 116.1 million Euros as of June 30, 2018 (previous year: 131.0 million Euros). In addition, order intake rose by 13.7% to 433.6 million Euros in the first half of the year (previous year: 381.5 million Euros). As of the reporting date, EDAG had 8,393 employees (previous year: 8,178 employees).
Against the background of the positive development in the first half of the year and the intact market environment, management had already raised its forecast for the full year 2018 on July 12. For the current year, sales growth of 6-8% and an adjusted EBIT margin of around 5-7% are now expected.
"REinvent" to get EDAG on a sustainable growth course
CEO Cosimo De Carlo will present the new strategic growth programme "REinvent" at an analysts' meeting, today. It identifies market potential for Engineering Services Provider and explains EDAG's strategic measures. The declared goal is to transform EDAG into the leading engineering and production specialist for the mobility of the future. Based on comprehensive packages of measures, the company is to grow sustainably and profitably. The aim is to achieve sales growth above the market average and a gradual improvement in adjusted EBIT in the direction of former average figures. EDAG will continue to communicate an annual guidance for sales and earnings targets.
EDAG CEO Cosimo De Carlo is optimistic about the development: "We had a very strong start into 2018. The entire market environment is dynamic and offers excellent opportunities for further growth thanks to very high expenditure on research and development and new automotive start-ups. In order to make optimum use of this potential, we have launched our strategic growth programme "REinvent". We are committed to the systematic further development of our three segments Vehicle Engineering, Production Solutions and Electrics/Electronics and aim to become the leading engineering and production specialist for the mobility of the future".
Georg Denoke, who was elected Chairman of the Board of Directors yesterday, emphasizes: "The "REinvent" program presented today by Cosimo De Carlo sets the right priorities for growth and competitiveness in order to shape the dynamic change in the automotive industry together with our customers in the coming years. Thanks to its great employees, EDAG stands for innovation, engineering skills and reliability. Our investors also need exactly this reliability. Step by step we want to earn this trust."
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
|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|