EDAG Engineering Group AG: Strong order intake in the third quarter indicates recovery
Arbon, 12. November 2020. EDAG, leading independent engineering services provider to the global automotive industry, reported its figures as at September 30th of the current business year, today. While the impact of the corona pandemic is reflected in the current figures, the first signs of recovery are evident in the order books.
Following the weak order intake in the first two quarters, the third quarter shows a more robust demand. With EUR 210 million, order intake was about 30 percent above the previous year's quarter. The order backlog has also recovered and, at EUR 391.2 million as of September 30, is now above the previous year's figure of EUR 327.6 million. Demand is supported in particular by international customers. The free cash flow also developed very positively and amounted to EUR 103.4 million after nine months, compared with EUR -18.2 million in the previous year. As of September 30th 2020 the EDAG Group employed 8,013 people (previous year: 8,623 employees).
"The economic impact of the corona pandemic is still clearly felt in the second half of the year. The countermeasures we took at an early stage are having an increasing impact and led to a positive EBIT in the third quarter", explains Cosimo De Carlo, CEO of the EDAG Group. "In addition, we have attracted new customers as a result of our successfully implemented internationalization strategy and have significantly increased the international revenue share to around 38 %. Overall, we consider the market to be on the road to recovery, although it is still characterized by a high level of uncertainty."
A decline in sales and earnings is still expected in the 2020 financial year compared to the previous year, which in the worst case can have a material impact on the earnings situation. On the basis of the negative earnings after taxes at September 30, 2020 and the year-on-year decline in order intake, as well as the restructuring expenses to be taken into account in the fourth quarter, it cannot be assumed that the accumulated loss after taxes can be compensated for in the course of Q4.
The Management continually monitors possible effects on the business and takes comprehensive measures to ensure the protection of employees and the continuation of business operations in the group companies.
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, cyber security and new production technologies.
In financial year 2019, the company generated revenues of EUR 781 million and an adjusted EBIT of EUR 33.0 million. As at 31 December 2019, 8,488 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:||1147408|
|End of News||DGAP Media|