EDAG Engineering Group AG:
- International share of revenue rises to 39.2%
- Negative impact on earnings due to one-off effects
- Significant cost optimizations implemented
- Free cash flow rises to EUR 134.6 million
- Software & digitization competencies pooled
Arbon, 24 March 2021 EDAG, leading independent engineering services provider to the global automotive industry, has published its figures for the fiscal year 2020, today. This was mainly influenced by one-off effects as a result of the Corona pandemic. Postponements and in some cases cancellations of projects in the first two quarters, as well as delays in the award of new contracts due to the prevailing uncertainty at the end of the year, led to significant losses in revenue and earnings.
At EUR 650.3 million, Group revenues were 16.8 percent below the previous year's level of EUR 781.3 million. In the Vehicle Engineering and Production Solutions segments, the decline in sales was significantly greater, at 17.8 percent and 15.4 percent respectively, than in the Electrics/Electronics segment, where the decline was moderate at 1.6 percent. Despite all the challenges, the company succeeded in continuing the internationalization strategy adopted in 2018, generating 39.2 percent of sales outside Germany.
Group EBIT adjusted for restructuring charges and purchase price allocation effects decreased to EUR -4.7 million (previous year: EUR 33.0 million). This corresponds to an adjusted EBIT margin of -0.7 percent (previous year: 4.2 percent). The decrease compared with the previous year was mainly due to the effects of the pandemic. Earnings after taxes in fiscal 2020 were down to EUR -23.4 million (previous year: EUR 7.0 million).
Free cash flow increased significantly to EUR 134.6 million for the full year (previous year: EUR 55.1 million). Net financial debt (w/o leasing) developed clearly favourable to a positive figure of EUR 33.1 million at the end of the year (previous year: EUR -71.0 million). As of December 31, 2020, the company had 7,984 employees worldwide (previous year: 8,488 employees).
"The 2020 financial year confronted the economy and society with unprecedented stress tests. We are very proud of our employees, who not only did a great job in this exceptionally challenging phase; with their behaviour and compliance with our protective measures, they also made a significant contribution to ensuring that there were no infection clusters within our company. Together, we took advantage of the crisis to optimize our structures, leverage potential efficiencies and savings, and to establish virtual collaboration across the board. A milestone for the effectiveness of our units in the area of software and digitization was the pooling of all capacities under a single leadership. Our goal of emerging from the crisis with strengthened structures will open up additional growth potential for us", explains Cosimo De Carlo, CEO of the EDAG Group.
Due to the macroeconomic environment, there are still exceptional uncertainties that materially affect the ability to forecast. In 2021, a moderate increase in sales is expected against the backdrop of the development in the reporting year 2020. Based on current estimates, a relatively weaker first half of 2021 and a relatively stronger second half of 2021 are assumed, although this assessment depends to a large extent on further pandemic developments. In the worst case, sales may stagnate or decline. In both cases, a notable improvement in adjusted EBIT is expected as a result of the cost-saving measures implemented.
The Board of Directors will propose to the Annual General Meeting on 23 June 2021 that a dividend should not be paid for 2020.
Selected key financial figures
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: sustainable vehicle development, safe mobility, digitization, as well as drive- and storage technologies.
In financial year 2020, the company generated revenues of EUR 650 million. As at 31 December 2020, 7,984 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:||1177427|
|End of News||DGAP Media|