Positive development of the business in first half-year
SAF-HOLLAND: Positive development of the business in first half-year
- Group sales increase to EUR 440.3 million
- Growth in all three Business Units
- Adjusted EBIT of EUR 28.9 million
- Equity ratio further increased
Luxembourg, August 16, 2012 - SAF-HOLLAND S.A. is still on the path to
success. In the first half of 2012, the Company increased Group sales by
EUR 22.4 million to EUR 440.3 million (previous year: EUR 417.9 million).
The supplier to the global truck and trailer industry thereby generated
stronger growth than the worldwide commercial vehicles industry and
achieved adjusted operating earnings of EUR 28.9 million.
North American activities underwent positive developments where sales
increased by 13.0 percent. Detlef Borghardt, CEO of SAF-HOLLAND: 'North
American fleet operators and trucking companies have started to make long
overdue investments in their trucks and trailers - a development that is
still to come for Europe.' With its expanded product range and increased
local production capacities, SAF-HOLLAND is extremely well-positioned in
the North American market. The market generates 42.1 percent of Group
sales, Europe accounts for a further 51.6 percent, and 6.3 percent is
attributable to other regions including the emerging BRIC countries.
Adjusted result for the period grows by 31.1 percent
The Group increased gross profit to EUR 80.4 million in the first half of
the year (previous year: EUR 76.7 million). The gross margin was at 18.3
percent (previous year: 18.4 percent). The adjusted result for the period
was also improved further and increased by nearly one-third to EUR 15.6
million (previous year: EUR 11.9 million). Although the average number of
shares outstanding increased to 41.2 million shares as a result of the
capital increase at the end of March 2011 (previous year: 31.8 million
shares), adjusted earnings per share increased slightly to EUR 0.38
(previous year: EUR 0.37). Adjusted EBIT totaled EUR 28.9 million (previous
year: EUR 30.0 million). In relation to sales, this results in an adjusted
EBIT margin of 6.6 percent (previous year: 7.2 percent). The expected small
decrease in adjusted EBIT was attributable to a missing contribution to
earnings from a project, the major portion of which expired as anticipated
in the third quarter of 2011. If the effect on earnings from this project
is not taken into consideration, the adjusted EBIT margin in the first half
of 2012 would be approx. 0.3 percentage points higher than the comparable
figure of the previous year.
Equity ratio improved again
The equity ratio improved to 36.8 percent as of June 30, 2012 (December 31,
2011: 35.8 percent), primarily owing to the successful optimization of
financing, among other things. The finance result decreased significantly
to -EUR 6.6 million (previous year: -EUR 18.0).
Trailer Systems: Strong North American business
All of SAF-HOLLAND's Business Units contributed to the Group's growth in
sales. The Trailer Systems Business Unit increased its half-year sales to
EUR 242.8 million (previous year: EUR 241.8 million) and contributed 55.1
percent to Group sales. The business especially grew in North America where
Trailer Systems benefited from a positive market environment as well as
growing interest in axle and suspension systems from SAF-HOLLAND. Gross
profit increased disproportionately to sales: at EUR 24.7 million, it
exceeded the prior-year figure by 8.8 percent (previous year: EUR 22.7
million). The gross margin increased from 9.4 to 10.2 percent.
Powered Vehicle Systems: Sales plus of 10.7 percent
The Powered Vehicle Systems Business Unit generated sales of EUR 81.7
million (previous year: EUR 73.8 million) corresponding to growth of 10.7
percent. The North American business grew at a disproportionate rate in
this Business Unit as well. The expected effect of the anticipated project
expiration was noticeable with gross profit at EUR 12.1 million (previous
year: EUR 13.9 million). Nevertheless, the Business Unit once again proved
its high profitability with a gross margin of 14.8 percent. As a result of
the growth in sales, the Business Unit increased its share in SAF-HOLLAND's
total sales by nearly one percentage point to 18.6 percent.
Aftermarket: Growing share in Group sales
Sales of the Aftermarket Business Unit increased by 13.2 percent in the
first half of the year to EUR 115.8 million (previous year: EUR 102.3
million). As a result, the Business Unit had a share in Group sales of more
than one-fourth for the first time. 'In the course of our growth strategy,
we aim to generate 30 percent of total sales in the Aftermarket business on
the mid-term. By exceeding the 25 percent marker, we have reached an
important milestone', said Wilfried Trepels, Chief Financial Officer. The
Business Unit showed its strength as a source of earnings: with a gross
margin of 37.7 percent, gross profit increased by EUR 3.4 million to EUR
43.6 million.
Further growth targeted for 2012 and 2013
Assuming that politicians succeed in managing the European sovereign debt
crisis, SAF-HOLLAND expects continued positive business development. The
positive development of the business in the first half of the year should
continue in 2012; however, the second half of the year traditionally offers
less potential due to plant vacation shutdowns of major customers. For the
full-year 2012, the Company expects Group sales of approximately EUR 850
million and a stable development of earnings. As compared to the previous
year, this would correspond to growth in sales of more than 2 percent or 5
percent adjusted for the project that expired in 2011. Given the
appropriate framework conditions, profitable growth is expected for 2013 as
well. The high demand for replacement parts for trucks and trailers remains
a significant growth driver: now that the modernization of fleets in North
America has started, the following year could also see a significant
reduction in the investment bottleneck in Europe giving the business at
SAF-HOLLAND additional momentum.
Note:
EBIT was adjusted for the following items that are not originally
attributable to the operating business: depreciation and amortization
arising from the purchase price allocation as well as restructuring and
integration costs.
The key figures chart is contained within the press release and can be
accessed at:
http://corporate.safholland.com/de/investor/finanznachrichten/pressemittei
lungen.html
Company Profile:
With sales of approximately EUR 831 million in 2011 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. has been listed in the Prime Standard of
the Frankfurt Stock Exchange since June 2007 and has been in the SDAX since
December 2010.
Contact:
SAF-HOLLAND Group GmbH
Christina Hüttner
Hauptstraße 26
63856 Bessenbach
Phone +49 6095 301-617
ir@safholland.de
End of Corporate News