DGAP-Ad-hoc: EDAG Engineering Group AG: EDAG lowers earnings guidance for 2017, sales guidance remains unchanged

EDAG Engineering Group AG / Key word(s): Preliminary Results

25-Jul-2017 / 13:47 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Arbon, 25. July 2017. The Group Executive Management of EDAG Engineering Group AG (EDAG) has decided today, to lower earnings guidance (adjusted EBIT in % of sales) for FY 2017 from about 6-8% to about 4-6%, based on substantial lower earnings development in Q2 2017.

Although the overall market environment, which is especially characterized by continued high R&D-budgets of the EDAG customers, is intact, the previous-year results could not be reached.

The lower development is primarily due to the following reasons:

  • The pricing pressure from the previous quarter continued in Q2 and could not be compensated by new international business.
  • For the realignment of the personnel structure, with regard to future customer requirements, one-time expenses occurred.
  • Significantly increased ramp-up costs led to devaluation of several projects at EDAG Mexico.

Without these special effects, the result of the previous-year could have been reached.

The sales guidance for 2017 remains unchanged; the company expects a growth of up to 5%.
For the first six months of 2017, sales are expected to be roughly 3% below the previous-year's figures but will be overcompensated in H2 2017. The adjusted EBIT[1] margin in H1 was at about 4%.

The final numbers for H1 2017 will be published on August 17th, 2017.
 

[1] For a definition of "adjusted EBIT" please see annual report 2016


Contacts:

Sebastian Lehmann
Head of Investor Relations

EDAG Engineering Group AG
Schlossgasse 2
9320 Arbon
Schweiz
Tel.: +41 (0)71 544 33 - 11
Fax: +41 (0)71 544 33 - 10
ir@edag-group.ag
ir.edag.com


Contacts in Germany:

EDAG Engineering GmbH
Kreuzberger Ring 40
65205 Wiesbaden
Tel.: +49-611-7375-168
Mobile: +49-175-8020226
Email: Sebastian.Lehmann@edag.de
www.edag.de
 


25-Jul-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de



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