SAF-HOLLAND SE: Euler Hermes Rating confirms investment grade rating
SAF-HOLLAND: Euler Hermes Rating confirms investment grade rating
Luxembourg, June 4, 2020. SAF-HOLLAND SE ("SAF-HOLLAND"), one of the world's leading suppliers of trailer and truck components, today published the combined rating report for 2020 from Euler Hermes Rating GmbH ("Euler Hermes Rating"). The report confirms the investment grade rating.
In its rating, Euler Hermes Rating particularly emphasizes the sustainable growth prospects from the increasing global transport volumes and the Group's leading market positions in the markets for axle and suspension systems for trailers in the EMEA region and India as well as fifth wheels in the Americas region and the structurally growing less cyclical high-margin spare parts business. It also positively assesses the high barriers to market entry.
At the same time, the assessment of the slightly increased market risk reflects the high dependency on the cyclical commercial vehicle sector and the intense competition, which currently is being exacerbated by the COVID-19 pandemic.
Euler Hermes Rating rates the financial risk of SAF-HOLLAND as low to moderate, with reference to its stable earnings power, high internal financing potential and solid financing base.
Dr. Matthias Heiden, CFO of SAF-HOLLAND says: "In sum, we are very satisfied with the rating. We are now benefitting from the fact that we initiated a global program to reduce the selling and administrative costs at the end of September 2019 already - after adjusting our forecast for the previous year. In addition, we were able to conclude a supplementary agreement to the collective agreement for the Bessenbach location that came into force on March 1, 2020. With the new promissory note loan we have significantly improved our maturity profile and, at the same time, are fully financed through to the year 2023. The "Cash Is King" project, which primarily addresses overdue receivables and the management of our inventories, will free up additional cash by the end of the year and keep the company on a stable course through these troubled times."
SAF-HOLLAND SE, located in Luxembourg, is the largest independent listed commercial vehicle supplier in Europe and primarily supplies the trailer markets. With sales of around EUR 1,284 million in 2019, the Company is one of the leading international manufacturers of chassis-related assemblies and components, primarily for trailers but also for trucks, buses, and recreational vehicles. In addition to axle and suspension systems, the product range includes fifth wheels, coupling systems, kingpins and landing legs, which are sold under the SAF, Holland, Neway, KLL, V.Orlandi and York brands. SAF-HOLLAND supplies original equipment manufacturers (OEM) on six continents. In the Aftermarket business, the Group supplies replacement parts to manufacturers' service networks (OES) and, with the help of distribution centers, to end customers and service centers via an extensive global sales network. SAF-HOLLAND has a broad international base and is present in almost all markets worldwide. With the innovation offensive "SMART STEEL - ENGINEER BUILD CONNECT", SAF-HOLLAND combines mechanics with sensors and electronics and is driving forward the digital networking of commercial vehicles and logistics chains. Around 3,500 committed employees worldwide are already working on the future of the transport industry today.
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This press release contains certain future-oriented statements that are based on current assumptions and forecasts made by the management of SAF-HOLLAND SE. Various known and unknown risks, uncertainties and other factors may lead to the actual results, financial position, development or performance of the company deviating considerably from the appraisals specified here. The company assumes no obligation to update future-oriented statements of this nature or adapt them to future events or developments.
This announcement is for information purposes only and does neither constitute an offer to sell, purchase, exchange or transfer any securities nor a solicitation of any offer to sell, purchase, exchange or transfer any securities. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. SAF-HOLLAND SE does not intend to register any securities referred to herein under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States in connection with this announcement.