EDAG Engineering Group AG: Record revenue and significant earnings increase in fiscal year 2018

EDAG Engineering Group AG:
Record revenue and significant earnings increase in fiscal year 2018

Arbon, 03 April 2019 EDAG, a leading independent engineering services provider to the global automotive industry, has published its figures for the fiscal year 2018, today. Compared to the previous year, revenues increased significantly by 10.3 percent to EUR 792.3 million. This was the highest revenue in the company's history. With an increase of EUR 13.3 million, the adjusted EBIT could be considerably improved compared to the previous year to EUR 47.6 million. This corresponds to an adjusted EBIT margin of 6.0 percent (previous year: 4.6 percent). Free cash flow developed particularly positive, more than doubling year-on-year to EUR 47.4 million. Net financial debt was significantly reduced. At the end of the year it stood at EUR 82.9 million (previous year: EUR 103.6 million). On 31 December 2018, EDAG had 8,641 employees, an increase of about 2.8 percent compared to previous year (8,404 employees).
 

Against the background of the positive course of the financial year 2018, the Board of Directors and the management will propose the distribution of a dividend of EUR 0.75 per share to the General Meeting on 5 June 2019.
 

"We have continuously progressed the realignment of EDAG as an integrated and globally positioned partner of the mobility industry in a phase of change within the automotive industry. We have managed to successfully realize technologically demanding projects together with our customers. Thanks to our comprehensive engineering expertise and our independence, we were able to significantly strengthen our international presence. This evolution of our company together with our customers was and remains essential for our success", comment Cosimo De Carlo, CEO of the EDAG Group, on the course of the fiscal year 2018.
 

The market for engineering services continues to be characterized by high expenditures by automobile manufacturers and their suppliers for research and development. This development concerns in particular investments in alternative drive systems, connected and automated driving, new factory concepts and digital business models. In addition, EDAG's customers continue to invest sustainably in the optimisation of existing technologies and the renewal of their product portfolio. Therefore, sustained market growth can be expected in the medium term.
 

In order to be able to cope financially with the enormously high development requirements, development budgets are partially reallocated and broad-based savings programs are implemented on the customer side. In addition, various OEM cooperation agreements have been announced in order to be able to limit the growth in R&D budgets. This causes partial delays in the awarding of contracts.

The ongoing change in the automotive industry holds further opportunities and challenges for the EDAG Group. With the consistent implementation of the "REinvent" growth program launched in 2018, EDAG is adapting to the changing market conditions and preparing for further growth.
 

Following the very strong revenue growth in 2018, the current year is expected to be less dynamic, especially in the first half of the year. Against this background, an increase in revenues of up to 5 percent and an adjusted EBIT-margin of approximately 5-7 percent is expected for 2019.

About EDAG
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, digitalization, integral safety and new production technologies.
 

In financial year 2018, the company generated revenues of EUR 792 million and an adjusted EBIT of EUR 47.6 million. As at 31 December 2018, 8,641employees (including apprentices) worked for EDAG all over the world.

 

Press contacts:

Public Relations
Christoph Horvath
Press Officer EDAG Group
Phone: +49 (0) 661- 6000 570
Mail: pr@edag.de
www.edag.de
 

Investor Relations
Sebastian Lehmann
Head of Investor Relations
Phone: +49 (0) 611- 7375 168
Mail: ir@edag-group.ag
ir.edag.de

Forward-looking statements

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.