EDAG issued last night a profit warning for its full-year 2019 operations. The company is now expecting revenue growth by approximately 1% (previous guidance 5%), an adjusted EBIT margin of 4%-5% (previously 5%-7%), and a net profit of EUR 10m.
Last week, KPIT Technologies, returned to India’s BSE and NSE. The company now has a market cap of approximately USD 410m with its share was introduced at a price of INR 99 and traded in the past few days between INR 103 and INR 115. KPIT has succeeded in its IPO and is now an ER&D service pure-play having sold its IT services business to Birlasoft.
Accenture continues to deploy its M&A strategy and has made its fifth acquisition for Industry X.0. The company acquired Zielpuls, an ER&D vendor servicing the German automotive industry. Zielpuls is an embedded systems specialist.
Segula Technologies has opened a new delivery center, close to Montbéliard, in the east of France. Segula will use the delivery center for its offsite projects, targeting the automotive industry (i.e., PSA) and its suppliers initially. Over time, Segula wants to diversify its client base to other sectors.
We are now entering the season for Q1 earnings, and as always we will look into changes in major trends. The state of the automotive industry will be an area we will be closely monitoring.
British ER&D service vendor Ricardo has renewed and expanded its engine manufacturing contract with McLaren. The company will manufacture engines for McLaren’s Track 25 plan. McLaren is expanding its car portfolio and as part of Track 25, will design 18 new models or derivatives of existing models.
KPIT quietly finalized its merger with the privately-owned Birlasoft. The new company is now called Birlasoft and will be an IT service pure-play. Birlasoft has carved out its automotive engineering business that will be called KPIT.
As expected, Volkswagen and Ford have provided some detail on their long-awaited partnership. Ford will design and build mid-sized pickups for Volkswagen, with the first vehicles ready in 2022. It will also build large commercial vans, while Volkswagen will develop a city van. In addition, the two firms intend to work together on mobility services, EVs and autonomous vehicles.
About one year, I wrote a blog signaling that the automotive market had reached the peak of its cycle and that, sooner than later, automotive OEMs would reduce their R&D and ER&D spending. I also said that, because Europe’s
QuEST Global Services indicated in an interview with the Indian newspaper, Business Standard, that it is contemplating a significant acquisition. Business Standard mentioned the USD 200m number, but it was not very clear whether this number indicated the price
Accenture had a busy summer, making three tuck-in acquisitions to its recently-created new Industry X.0 unit that is part of Accenture Digital: Columbus, OH-based Pillar Technology provides embedded software capabilities for connected products such as cars. The company has