EDAG Engineering Group AG

Cost-saving measures take effect in first quarter, market environment brightens up

DGAP-Media / 06.05.2021 / 07:30 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.