EDAG Engineering Group AG: Cost-saving measures take effect in first quarter, market environment brightens up
Arbon, 06. May 2021. EDAG, leading independent engineering services provider to the global automotive industry, continues to experience the effects of the Corona pandemic in the first quarter of 2021, as well as strains from a cyber-incident in March. Group revenues in the first three months of fiscal 2021 decreased by 18.9 percent to EUR 156.7 million (previous year: EUR 193.2 million).
The impact on earnings was, however, largely mitigated by the cost-cutting measures taken in the previous year. Group adjusted EBIT levelled at EUR 1.4 million (previous year: EUR 3.8 million).
The segments Vehicle Engineering and Electrics/Electronics were profitable and able to even increase their results; Production Solutions on the other hand posted a negative EBIT. This segment was particularly affected by the above-mentioned effects. On 31 March 2021, EDAG had 7,871 employees (previous year: 8,345 employees).
"The market environment for engineering service providers is currently brightening, and we are therefore increasingly optimistic about the second half of the year in particular", explains Cosimo De Carlo, CEO of the EDAG Group.
For 2021, a moderate increase in sales is still expected compared to the previous year. 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.
Outlook to the Annual Shareholder's Meeting
The Annual Shareholder's Meeting will take place on 23 June 2021 in Zurich. Due to the persisting corona pandemic and the related restrictions, individual attendance by shareholders to the Annual Shareholders' Meeting is not possible. Shareholders who wish to exercise their voting rights at the Annual Shareholder's Meeting can use the applicable proxy form by 18 June 2021 via their respective custodian bank or via the company in exchange for provision of proof that the share(s) have been deposited with a bank.
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.
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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.
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