EDAG Engineering Group AG: Business development in the first quarter of 2020 influenced by the corona pandemic
Arbon, 07 May 2020. EDAG, a leading independent engineering services provider to the global automotive industry, records first effects of the corona pandemic in the financial figures for the first quarter 2020. Some EDAG sites, but also sites of EDAG customers, especially in China, Italy and Spain, were temporarily closed due to governmental regulations. As a result, revenues declined by 2.4 percent to EUR 193.2 million (previous year: EUR 197.9 million). Whilst revenues in the Segments Vehicle Engineering and Electrics/Electronics were on previous year's level and increased by 4.5 percent respectively, the decline in sales in segment Production Solutions was at least slowed down considerably. The Group's adjusted EBIT was at EUR 3.8 million (previous year: EUR 11.0 million). On 31 March 2020, EDAG had 8,345 employees (previous year: 8,681 employees).
"The current situation poses particular challenges for all market participants. With our immediate measures, we have ensured the protection of our employees and the liquidity of the company", explains Cosimo De Carlo, CEO of the EDAG Group. "Now it's time to pick up speed in important innovation projects in close cooperation with our customers. As a flexible and globally active partner, we are at their side in shaping the mobility of the future."
The effects of the corona pandemic on business development in 2020 can still not be assessed and evaluated with certainty in terms of extent and duration. Thus, the company still expects a decline in sales and earnings compared to the previous year, which in the worst case can have a significant impact on the earnings situation.
Outlook to the Annual Shareholder's Meeting
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): Research/Technology
07.05.2020 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG.
|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:||1037545|
|End of News||DGAP Media|