EDAG Engineering Group AG: EDAG lowers earnings guidance for 2017, sales guidance remains unchanged
Although the overall market environment, which is especially characterized by continued high R&D-budgets of the EDAG customers, is intact, the previous-year results could not be reached.
The lower development is primarily due to the following reasons:
The pricing pressure from the previous quarter continued in Q2 and could not be compensated by new international business. For the realignment of the personnel structure, with regard to future customer requirements, one-time expenses occurred. Significantly increased ramp-up costs led to devaluation of several projects at EDAG Mexico.
Without these special effects, the result of the previous-year could have been reached. The sales guidance for 2017 remains unchanged; the company expects a growth of up to 5%. For the first six months of 2017, sales are expected to be roughly 3% below the previous-year's figures but will be overcompensated in H2 2017. The adjusted EBIT margin in H1 was at about 4%.
The final numbers for H1 2017 will be published on August 17th, 2017.
 For a definition of "adjusted EBIT" please see annual report 2016 Contacts: Sebastian Lehmann Head of Investor Relations EDAG Engineering Group AG Schlossgasse 2 9320 Arbon Schweiz Tel.: +41 (0)71 544 33 - 11 Fax: +41 (0)71 544 33 - 10 email@example.com ir.edag.com Contacts in Germany: EDAG Engineering GmbH Kreuzberger Ring 40 65205 Wiesbaden Tel.: +49-611-7375-168 Mobile: +49-175-8020226 Email: Sebastian.Lehmann@edag.de www.edag.de
25-Jul-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English
Company: EDAG Engineering Group AG Schlossgasse 2 9320 Arbon
Switzerland Phone: +41 71 54433-0 E-mail: firstname.lastname@example.org Internet: www.edag.com ISIN: CH0303692047 WKN: A143NB Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart End of Announcement DGAP News Service
595445 25-Jul-2017 CET/CEST