EDAG Engineering Group AG: Positive revenues forecast for 2017; earnings forecast after preliminary H1 figures adjusted
EDAG Engineering Group AG (EDAG) has disclosed preliminary figures for H1 2017. Revenues levelled slightly below (-3%) previous-year figures of 362 million Euros. The mainly by ppa-effects adjusted EBIT-margin was at about 4%.
The H1 figures are overall burdened by some special effects. Ramp-up costs for some projects in Mexico were higher than expected. Moreover EDAG is currently realigning the personnel structure, in order to be prepared for future customer requirements. These factors, together with the continued pricing pressure, led to an extraordinary impact on earnings.
Regardless of these temporary effects, the management considers the overall market for engineering service providers as intact. The R&D spendings at the customers are still on a very high respectively growing level. Against the background of future topics like e-mobility, autonomous driving, connectivity and industry 4.0, this trend is unbroken. By the recent acquisitions in Sweden and the USA, EDAG will be consistently aligned to the requirements of the customers and the markets of the future.
Against this background, the company expects a growth in revenues of up to 5% and an adjusted EBIT-margin of 4-6% for the full year.
The final numbers for H1 2017 will be published on August 17th, 2017.
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, car IT, integral safety and new production technologies.
In financial year 2016, the company generated revenues of EUR 715 million and an adjusted EBIT of EUR 43.8 million. As at 31 December 2016, 8,270 employees (including apprentices) worked for EDAG in 19 countries.
Press contacts:Public Relations Christoph Horvath Press Officer EDAG Group Phone: +49 (0) 661- 6000 570 Mail: firstname.lastname@example.org www.edag.de
Investor Relations Sebastian Lehmann Head of Investor Relations Phone: +49 (0) 611- 7375 168 Mail: email@example.com ir.edag.de
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.
25.07.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.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 News DGAP News Service