EDAG Engineering Group AG: H1 2019 - growth in the segments Vehicle Engineering and Electrics/Electronics
Arbon, 28 August 2019. EDAG, leading independent engineering services provider to the global automotive industry, recorded a positive development in order intake in the first half of fiscal year 2019. As at June 30th, orders with a volume of EUR 462.9 million could be won, an increase of EUR 29.3 million over previous year's figure. Revenues in the first six months were at EUR 390.4 million, about the same level as in the previous year (EUR 391.1 million).
Revenue development in the segment Electrics/Electronics was particularly positive with a growth of 14.2% to EUR 86.2 million. The largest segment Vehicle Engineering increased its revenues by 3.1% to EUR 250.2 million. The segment Production Solutions, on the other hand, recorded a decline in sales of 26.3% to EUR 58.4 million. Delays in the awarding of contracts and budget shifts at major customers have resulted in lower capacity utilization in this segment.
Adjusted EBIT for the Group was at EUR 16.9 million (previous year: EUR 25.6 million). In the first half of the year, future-oriented investments amounting to EUR 12.2 million were made. The Capex-ratio was at 3.1% (previous year: 2.6%). As at June 30th 2019 the EDAG Group employed 8,653 people (previous year: 8,393 employees).
Against the background of the challenging situation in the segment Production Solutions, as well as the expected continuation of the volatile market environment in the second half, management has decided on July 29th to adjust the sales and earnings guidance for the full year 2019. Revenues are now expected to be at previous year's level +/- round 1%. The adjusted EBIT-margin is now expected in a range of round 4-5%.
"Our customers are currently facing a multitude of challenges", says Cosimo De Carlo, CEO of the EDAG Group. "On the one hand, rapid technological change requires high investments in research and development. On the other hand, declining passenger car sales figures are leading to lower inflows of funds. In this challenging market situation, EDAG with its flexible and innovative concepts ensures high efficiency and profitability in development projects. As a solution-oriented development partner, we can thus optimally support our customers in shaping the mobility of the future."
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, digitalization, integral safety and new production technologies.
In financial year 2018, the company generated revenues of EUR 792 million and an adjusted EBIT of EUR 47.6 million. As at 31 December 2018, 8,641 employees (including apprentices) worked for EDAG all over the world.
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, Hamburg, Munich, Stuttgart|
|EQS News ID:||863759|
|End of News||DGAP Media|