EDAG Engineering Group AG

further revenue growth in first half of 2016 (news with additional features)

DGAP-Media / 11.08.2016 / 12:07

press release

EDAG Engineering Group AG: further revenue growth in first half of 2016

Arbon, August 11th, 2016. EDAG Engineering Group AG, leading independent
engineering services provider to the global automotive industry, records a
further growth in revenues according to preliminary figures for the first
half of 2016. The overall performance increased by 2% to 362 m. EUR in the
first six months (355 m. EUR in the previous year). The positive
development is also reflected in the number of staff - 8,267 people were
employed at June 30th 2016 (previous year: 7,761 employees). The
preliminary adjusted EBIT levels at 22.5 m. EUR (35.4 m. EUR in the
previous year). For the full year, a moderate revenue growth in the lower
single-digit percentage range and an adjusted EBIT-margin of 6-8% is
expected. The dividend shall remain stable with 0.75 Euros per share.

Proactive approach in a challenging market environment
In order to optimize results, the management has improved the cost basis
with a package of measures that will have an enhancing positive impact in
the course of the year. Supplementary selective measures are intended to
help setting forth the positive development. The expertise of new
professionals in all departments shall support the further growth of EDAG
in particular. In the current training year, EDAG was happy to welcome
about 200 new trainees who wanted to learn their dream job and set the
basis for their career. "Exciting projects all around the mobility of the
future offer applicants excellent development prospects in a constantly
changing industry", explained Joerg Ohlsen, CEO of EDAG.

Market trends offer chances for further growth
OEMs and their suppliers are facing tremendous challenges due to the
technological change in the automotive industry. In this context some OEM
are currently adjusting their model portfolio and reallocating their R&D-
budgets. EDAG considers the long term trends in the automotive industry
such as environmentally friendly mobility, automated driving,
digitalization as well as an increasing number of drive variants as intact.
The demand for international engineering services is considered to be
further growing, as OEMs and their suppliers are subject to a continued
high pressure for innovations and additional cost savings at the same time.
"With our efficient and globally interconnected structures we can make a
substantial contribution to these needs. In our product portfolio we focus