Successful start in financial year 2014
SAF-HOLLAND: Successful start in financial year 2014
* Group sales increased by 12 percent to EUR 235.3 million
* Adjusted EBIT grows significantly by 24% to EUR 17.1 million
* Good sales growth especially in European core market
* Sales and earnings targets for 2014 confirmed
Luxembourg, May 15, 2014 - SAF-HOLLAND, the globally active supplier for
the truck and trailer industry, had a successful start in the current
financial year. In the first quarter, the company increased Group sales by
12 percent to EUR 235.3 million (previous year: EUR 210.1 million).
SAF-HOLLAND benefited primarily from the significant expansion of business
volume in Europe. This was on top of a marked sales increase in emerging
markets such as the BRIC countries. Earnings figures also developed
positively in the first three months. Adjusted EBIT in the Group increased
by 23.9 percent, reaching EUR 17.1 million (previous year: EUR 13.8
million). As a result of the marked increase, the adjusted EBIT margin
improved to 7.3 percent (previous year: 6.6 percent). Adjusted earnings per
share grew to EUR 0.21 (previous year: EUR 0.19) while average number of
shares remained the same at 45.4 million.
Strong growth in Europe and emerging countries
In its European core market, SAF-HOLLAND expanded quarterly sales by 20.5
percent to EUR 132.8 million (previous year: EUR 110.2 million). Due to the
increase of EUR 22.6 million, the region's share of Group sales rose to
56.4 percent (previous year: 52.5 percent). Detlef Borghardt, CEO of
SAF-HOLLAND: "With our preparations in the fourth quarter of 2013 for the
expected higher demand, we were able to benefit from growth in the
commercial vehicles market in Europe to a disproportionately high extent
and further expand our share in this important market." In the emerging
regions, business volume grew by 40.3 percent to EUR 19.5 million (previous
year: EUR 13.9 million). The regions' share of Group sales thus increased
to 8.3 percent (previous year: 6.6 percent). The newly-acquired Corpco
Beijing Technology and Development Co., Ltd. (Corpco), a leading Chinese
manufacturer of suspension systems for buses, was consolidated for the
first time. In North America SAF-HOLLAND was able to benefit from the
positive market forecasts and rising demand regarding standard products for
trucks in the first quarter 2014. On the other hand the still reluctant
demand by the US Government after the resolution of the budget crisis in
USA led to an unfavorable product mix for SAF-HOLLAND compared to the first
quarter 2013. Until the end of March, SAF-HOLLAND achieved sales in line
with planning in North America of EUR 83.0 million (previous year: EUR 86.0
million). Currency adjusted, North American sales of EUR 86.0 million were
at the level of the previous year. The region's contribution to Group sales
reached 35.3 percent (previous year: 40.9 percent).
Trailer Systems: strong increase in sales and earnings
The Trailer Systems Business Unit increased its quarterly sales by 16.1
percent to EUR 140.9 million (previous year: EUR 121.4 million), which
increased the Business Unit's contribution to Group sales to 59.9 percent
(previous year: 57.8 percent). The adjusted EBIT of SAF-HOLLAND's largest
business segment was thus more than doubled. In the reporting period it
totaled EUR 5.4 million (previous year: EUR 2.3 million) with an adjusted
EBIT margin of 3.9 percent (previous year: 1.9 percent). In addition to
volume effects, the significantly higher profitability reflects the
measures the company initiated in the second half of 2013 which are aimed
toward significantly raising the profitability of the business segment.
Steffen Schewerda, Managing Director of the Trailer Systems Business Unit:
"We are progressing as planned with the implementation of our package of
measures, especially with regard to the plant consolidation. Overall, by
the end of 2015, the package of measures should help us to improve the
adjusted EBIT margin of the Business Unit by around three percentage points
as compared to financial year 2012."
Powered Vehicle Systems: business develops as planned
The sales volume of SAF-HOLLAND's Powered Vehicle Systems Business Unit
reached EUR 36.5 million in the first quarter (previous year: EUR 37.1
million). This segment thus generated 15.5 percent of Group sales (previous
year: 17.6 percent). Unlike the Group as a whole, the Business Unit
generates a majority of its sales in North America, which is why the
unfavorable currency situation in the translation from Canadian and US
dollars to Group currency euro had a negative impact. While the Business
Unit Powered Vehicle Systems was able to benefit from the positive market
forecasts and rising demand regarding its standard products for trucks in
the first quarter 2014, sales and earnings in the Business Unit were also
impacted by the still reluctant procurement activities of the Government
after the resolution of the budget crisis in the USA. The hesitant awarding
of orders led to a more unfavorable product mix as compared to the first
quarter 2013. Furthermore, a seasonally-related weaker first quarter in
connection with the integration of Corpco also had an impact. Adjusted EBIT
for the Business Unit amounted to EUR 2.1 million (previous year: EUR 3.4
million) with an adjusted EBIT margin in line with planning of 5.7 percent
(previous year: 9.2 percent). For fiscal year 2014 SAF-HOLLAND expects to
benefit from the forecast of double-digit growth rates for class 8 trucks
in North America.
Aftermarket: ongoing profitable growth
In the Aftermarket Business Unit, sales in the first three months increased
to EUR 57.9 million (previous year: EUR 51.6 million). As in the same
period from the previous year, SAF-HOLLAND thus generated 24.6 percent of
Group sales in the Aftermarket business. Adjusted EBIT for the Business
Unit increased to EUR 9.6 million (previous year: EUR 8.1 million) with an
adjusted EBIT margin of 16.6 percent (previous year: 15.7 percent).
Following the expansion of the company's presence in Central and South
America in 2013, the Business Unit this year is focusing on opening up
further emerging markets in the South East Asia region. The Parts
Distribution Center opened by SAF-HOLLAND in Malaysia in March of this year
provides a promising foundation for these efforts.
Investments: expansion of global activities
Over the course of the first three months of the year, SAF-HOLLAND invested
on a Group-wide basis a total of EUR 8.5 million (previous year: 5.6
million) in the expansion of its business volume. The company's key
investment projects in the current year will include the expansion of
business operations in Dubai. In addition to the existing Aftermarket
business, assembly capacities for the Business Units Trailer Systems and
Powered Vehicle Systems will be created there. From Dubai SAF-HOLLAND
serves markets in both, the Middle East as well as North and Central
Africa.
Outlook confirmed
Assuming that the overall economic, political and industry-specific
environment does not take a turn for the worse, SAF-HOLLAND continues to
anticipate Group sales of between EUR 920 million and EUR 945 million for
full-year 2014. On the earnings side, the company is targeting an adjusted
EBIT of approximately EUR 70 million for full-year 2014 with a rising
adjusted EBIT margin. The medium-term target of a growth course in the
worldwide commercial vehicles markets is also confirmed. For financial year
2015, SAF-HOLLAND thereby still plans Group sales of EUR 980 million to EUR
1.035 billion and an adjusted EBIT margin of 9 to 10 percent.
Notes:
EBIT was adjusted for the following items that are not originally
attributable to the operating business: amortization from the purchase
price allocation and impairment reversals on goodwill and intangible assets
from the impairment tests as well as restructuring and integration costs.
The key figures chart included in the press release can be accessed at
http://corporate.safholland.com/de/investor/finanznachrichten/pressemittei
lungen.html.
Company Profile:
With sales of approximately EUR 860 million in 2013 and more than 3,000
employees, SAF-HOLLAND S.A. is one of the world's leading manufacturers and
suppliers of premium product systems and components primarily for trailers
as well as trucks, buses and recreational vehicles. The product range
encompasses trailer axle systems and suspension systems, coupling devices,
kingpins, and landing legs among other things. SAF-HOLLAND sells its
products on six continents to Original Equipment Manufacturers ("OEM") in
the replacement parts market and, in the aftermarket business, to the OEM's
Original Equipment Suppliers ("OES"), as well as by means of a global
service and distribution network. SAF-HOLLAND also sells its products to
end users and service centers using this network. SAF-HOLLAND has
established itself as one of the few manufacturers in its sector that is
internationally positioned with an extensive product range and a broad
service network. SAF-HOLLAND S.A. is listed in the Prime Standard of the
Frankfurt Stock Exchange and is among the stocks in the SDAX (ISIN:
LU0307018795).
Contact:
SAF-HOLLAND GmbH
Claudia Hoellen
Hauptstraße 26
63856 Bessenbach
Phone +49 6095 301-617
claudia.hoellensafholland.de
End of Corporate News