Excellent results from railway rolling stock manufacturer Newag

Excellent results from railway rolling stock manufacturer Newag

Polish rolling stock manufacturer Newag has released financial results for three quarters of 2020, as railway magazine «Railway Supply» reports citing Rynek Kolejowy.

The group’s profit is three times higher than last year, but the company reserves to itself that this is also a matter of order distribution.

Newag will release its three-quarter financials on Friday (November 20). Preliminary results have already been published – if they change, then only slightly. The first three quarters were really successful for the Polish manufacturer. Sales revenue for the three quarters of 2020 amounted to PLN 811.1 million. Compared to the corresponding period last year, an increase of 256.4 million PLN (+ 46.2%). In the analyzed period, the company recorded a profit of 80.3 million PLN, while in the corresponding period last year, the company’s profit amounted to 21.4 million PLN (+58.9 million, + 275%). EBITDA amounted to almost PLN 145 million, which is PLN 78.5 million more than in the first three quarters of 2019 (+ 118.2%).

The threefold increase in Newag’s profits and the nearly fourfold increase in the company’s own profits should be impressive. The manufacturer believes that this result was mainly influenced by the much higher sales revenue compared to the corresponding periods in previous years, which is the result of a more even distribution of sales targets in 2020 compared to previous years. However, it should be added that despite these reservations, sales of 803.5 million PLN after three quarters accounted for almost 90% of all sales last year (896.085 million PLN).

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