VDL figures show impact of material shortage

VDL figures show impact of material shortage

Fighting over batches of steel, stocks that rise because products cannot be finished, car factory Nedcar that was closed for more than a month: the presentation of the half-year figures of industrial group VDL on Friday gave a gloomy insight into the impact of the material and parts shortages on the industry.

At first glance, CEO Willem van der Leegte did not present bad figures. The turnover of the Eindhoven family business (15,500 employees) amounted to 2.5 billion euros in the first half of 2021. That is far above the dramatic first half of corona year 2020 (2 billion euros) and already close to the 2.9 billion of 2019.

But there is no cheerfulness at VDL. The figures could have turned out much better had there not been such a great scarcity of parts and raw materials worldwide. The operational management of many of the approximately one hundred operating companies is difficult. Chip shortages have shut down the Limburg car factory Nedcar (4,000 employees) for more than thirty days this year. “But there is a shortage of everything,” said Van der Leegte. “Glass, wood, steel, plastic.”

It is really a search for available parties, says Van der Leegte. “A supplier called in the morning and said: we have a batch of steel for you. Well, we had to coordinate that with customers.” A few hours later, VDL called back – and then the match was over. “Very strange things happen.”

With small quantities of raw materials, VDL tries to serve the same quantities of customers, which means that production lines have to be converted relatively often. This means that production costs relatively much money, says Van der Leegte. And then the customers are not even always waiting for the products: they often do not receive other parts for their end products. “We then say: it is now coming your way. ‘No’, the customer then says.” The result: rising stocks.

The profit in the first half year amounted to 69 million euros. Van der Leegte expects the impact of the deficits to be even greater in the coming quarter. He hopes to achieve a turnover of 5 billion euros for the entire year (5.8 billion in 2019): the last quarter is traditionally somewhat stronger at VDL.

Low demand coaches

In theory, VDL is still entitled to around 36 million euros in NOW support over the past six months, the company announced on Friday. This is because at some operating companies the loss of turnover compared to 2019 is still significant. The bus division, in particular, is still struggling with low demand. “The coach sector is one of the hardest hit sectors of the corona crisis, perhaps even more than the events,” said Van der Leegte.

However, the company will not use the full 36 million. At operating companies that have made a profit despite the loss of turnover, the requested money will be refunded. The company does not disclose how much that is. In 2020, VDL made a profit of around 100 million euros, while it received approximately the same amount of money in NOW support.

Friday was also the first time that CEO Van der Leegte spoke about the failed hostile takeover of electronics company Neways earlier this year. VDL wanted to take the printed circuit board producer from the stock market from Brabant before the summer, but received no support from the management and was eventually trumped by the Twente investor Bernard ten Doeschot.

Van der Leegte emphasized that 70 percent of the shareholders quickly agreed with the offer of 13 euros per share. When Ten Doeschot went over this with the support of the management, VDL did not feel the need to go along with it, according to the CEO. “We thought 13 euros was fair.” That you then lose, “you have to accept”. Van der Leegte said it will announce in October whether VDL will sell the existing 27 percent stake in Neways to Ten Doeschot.

VDL figures show impact of material shortage
Source link VDL figures show impact of material shortage

Internet Explorer Channel Network
News Related

OTHER NEWS

Use capitalism, now for the climate

It’s raining this week. The storm does not consist of water drops, but of green plans, studies and intentions. COP26, the international climate summit, starts next weekend, and the investment ... Read more »

Texas, DOJ and abortion providers file arguments as abortion ban fight nears Supreme Court

Hannah Wolfe, left, protests against abortion rights as Laurie Arbeiter protests for abortion rights in front of Wolfe, outside of the U.S. Supreme Court building in Washington, U.S., October 4, ... Read more »

Car production for September falls to lowest in 40 years

Meanwhile, exports of cars to the EU from Britain fell by a third last month, continuing a "worrying trend", an industry body said. Read more »

Initiative transforms waste into pallets

An artificial wood pallet, made of recycled plastic waste, being used in a warehouse. Several companies and a university have joined forces to promote the use of hard-to-recycle plastic containers ... Read more »

Tropicana creates toothpaste that won't ruin orange juice taste

The new limited-edition toothpaste, which arrives in a clearly-branded Tropicana Toothpaste tube, will be released on November 1 — National Brush Day.  Experts at beverage manufacturer Tropicana have come up ... Read more »

Raffles Education not exiting education; suggests shareholders ask Oei Hong Leong about 'feud' with CEO

SINGAPORE (THE BUSINESS TIMES) – Despite cumulative losses to the tune of over $150 million from its core operating business over the past 10 years, mainboard-listed Raffles Education said it ... Read more »

NFL faces public backlash and unresolved media deals at league's 2021 fall meetings

NFL Commissioner Roger Goodell during the NFL Football match between the Miami Dolphins and Indianapolis Colts on October 3rd, 2021 at Hard Rock Stadium in Miami, FL.Andrew Bershaw | Icon ... Read more »

IRPC vows to stamp out corruption

IRPC Plc, a petrochemical arm of national oil and gas conglomerate PTT Plc, has announced zero tolerance of corruption, a major hindrance to national economic development and business progress in ... Read more »

The One Enterprise IPO to raise B4.2bn

Takonkiet: Future growth potential The One Enterprise Plc, Thailand's leading full-service media and entertainment company, is set to raise 4.2 billion baht from its initial public offering (IPO). The company ... Read more »

Centara hotel wins SHA Plus award

Robert Maurer Loeffler, general manager of Centara Grand at CentralWorld, centre, and the hotel’s management team, claim the ‘Amazing Thailand Safety and Health Administration: SHA Plus’ award. The Tourism Authority ... Read more »

HSBC sets up new wealth and insurance centre as one-stop shop to capture affluent Greater Bay Area clients

HSBC, the largest lender in Hong Kong and Europe, has opened its first centre that combines wealth management, insurance and medical check-up services into a one-stop shop, as part of ... Read more »

Cramer's lightning round: Amphenol Corp. is a buy

Stag Industrial: “I think it's a very good read. I happen to like Realty Income, which is [ticker symbol 'O']. … But yours is good, too.” Meritor: “What's happening is ... Read more »

CEO of paint-maker PPG says predicting sales is a challenge because of supply chain woes

Global supply chain disruptions had a much-larger impact on PPG Industries' third-quarter sales than initially expected partly because key customers can hardly provide the company with their own accurate projections, ... Read more »

Chip shortage dents earnings at GM and Ford

NEW YORK (NYTIMES) – Two big Detroit automakers said on Wednesday (Oct 27) that the worldwide shortage of computer chips had weighed on their third-quarter earnings, but there were signs ... Read more »

State to focus on food, beverage exports

A visitor tastes beverages at the 2020 THAIFEX – Anuga Asia trade show. Last year, the food and beverage industries generated revenues of US$20.5 billion to the country, down 7% ... Read more »

Call for condo reform to lure foreigners State urged to make money transfers easy

Prospective Chinese buyers visit the sales gallery for a high-rise condo launched in June 2019 in Bangkok. The government has been urged to simplify money transfers and provide more medical ... Read more »

Tokyo Disneyland allows adult guests to enter in Halloween costumes

Costume-clad visitors are usually prohibited to avoid confusion with official characters welcoming guests. Tokyo Disneyland is now allowing Halloween costume-clad visitors to stroll around the theme park, usually prohibited to ... Read more »

Rabbit Cash launches digital lending services

From left Mr Oshima, Mr Soontorn, Ms Ratchanee and Mr Warawut at the launch of the Rabbit Cash joint venture. Rabbit Cash, a joint venture by three major companies, has launched ... Read more »

Call for travel bubbles Seen as crucial for two-way tourism

Tourists are greeted by health officials on arrival at Suvarnabhumi International airport as they now have to quarantine on arrival in accordance with the Centre for Covid-19 Situation Administration’s regulations. (Photo: ... Read more »

State vows raft of ways to lift economic growth

The government vows to rev up infrastructure development, investment in clean energy, electric vehicles and new targeted industries to lift economic growth. Speaking on Wednesday at a forum entitled “Creating ... Read more »

State banks line up loans for businesses in EEC

State-run financial institutions stand ready to provide liquidity to around 175,000 business operators in the Eastern Economic Corridor (EEC) to help them deal with the impact of the ongoing Covid-19 ... Read more »

LTV rejig a boon for stocks

Analysts say the easing of the LTV rule will have a huge positive effect on the real estate sector. Real estate stocks will directly benefit from the Bank of Thailand ... Read more »

Lab-grown coffee on the way Boffins come up with sustainable alternative

Research team leader Heiko Rischer shows cell cultures at the VTT lab in Espoo, Finland. (AFP photo) HELSINKI: Latte drinkers may in the future be sipping on java sourced from ... Read more »

SRT unveils Red Line extension

The State Railway of Thailand (SRT) has unveiled a plan to add four more extensions to its Red Line electric commuter train service and grant a concession for operating the ... Read more »

Covid fears mount as Bangkok eyes tourists

A worker cleans Don Mueang, one of the airports to reopen for fully vaccinated travellers on Monday. (Photo: Pattarapong Chatpattarasill) About 300,000 foreign tourists are expected to visit Bangkok in ... Read more »

Cramer rejects calls to break up Big Tech, says U.S. government is wrong to target it

CNBC's Jim Cramer said Wednesday he opposes government efforts to break up American technology giants such as Amazon and Apple. “You want to hate big tech for being too powerful, ... Read more »

Brooklyn Nets fans could now interact via video chat with up to 3 friends during live streaming

YES subscribers could now interact with up to three friends through video chat in live streaming coverage of the Brooklyn Nets. New York-based YES Network has installed a ‘watch together’ ... Read more »

Switzerland follows EU's suit by imposing sanctions against eight Russian citizens

The inclusion of the eight people to the sanctions list was justified by them allegedly actively supporting actions and policies that undermine and threaten the territorial integrity, sovereignty and independence of Ukraine Read more »

After $4 billion deal with Tesla, Hertz says it will rent out half those cars to Uber drivers

Drivers with at least a 4.7-star rating will be able to rent a Model 3 for $334 a week before taxes and fee. Read more »

Ford does better thanks to increase in available chips

Ford’s turnover in the months of July to September amounted to 35.7 billion dollars, just under 31 billion euros. In the second quarter, sales still accounted for $26.8 billion in ... Read more »

Ford does better thanks to an increase in available chips

Photo: ANP Ford has seen a significant increase in sales and profits in the third quarter. According to the car manufacturer, this is because the company received many more chips ... Read more »

ANZ NZ profit up 44 per cent to $1.92 billion

ANZ New Zealand has seen a 44 per cent increase in its profit rising to hit $1.92 billion for the year to September 30. The country’s largest bank saw its ... Read more »

Dow, S&P 500 falls from records as Congress haggles

NEW YORK (AFP) – Major Wall Street indices drew back from record territory on Wednesday (Oct 27), as enthusiasm over good earnings numbers was overcome by the grinding politics of ... Read more »

US stocks down on tax uncertainty

Stock markets in New York closed mostly lower on Wednesday. Investors wonder what will happen to corporations and billionaires in taxes as negotiations over President Joe Biden’s investment plans continue. ... Read more »

Starbucks hikes wages, will hit $15 an hour minimum by next summer

A 'We're Hiring!' sign is posted at a Starbucks on August 06, 2021 in Los Angeles, California.Mario Tama | Getty Images Starbucks announced Wednesday it will raise wages for its ... Read more »

Budget 2021: Government targets top 30 developers in £2bn cladding tax raid

But campaigners have warned that the total bill could hit as high as £10bn. Read more »

Welcome Energie customers feel doubly caught: ‘Welcome premium lost and pay twice as much'

Quite a few of the 90,000 customers of Welkom Energie had to learn this morning on this site or from other media that their supplier can no longer supply gas ... Read more »

Unilever escapes: ‘departure fine' no longer retroactive

That must have brought relief to the Unilever offices. The company wants to move its headquarters to the United Kingdom. But because of the bill that Snels was working on, ... Read more »

Gazprom, Moldova hold talks on new gas supply contract terms

Alexey Miller, Deputy Prime Minister of Moldova Andrei Spinu and Moldovagaz CEO Vadim Ceban continued the negotiations on the terms of a new contract for supply of the Russian natural gas to the republic and on the ongoing issues of cooperation between Gazprom and Moldovagaz Read more »

KPN and VodafoneZiggo remove telephones from Amsterdam stores due to burglaries

Telecom companies VodafoneZiggo and KPN are removing their telephone stocks from branches in Amsterdam after a series of robberies. VodafoneZiggo reported on Wednesday that “in a short time” several shops ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic