SAF-HOLLAND Posts Q3 Profit
Bessenbach, November 7, 2008 – SAF-HOLLAND S.A. has posted positive
third-quarter earnings in an increasingly difficult market environment.
Preliminary figures for the third quarter put the adjusted EBIT at about
EUR 9 million (preceding year: 16.3) with sales of approx. EUR 188 million
(preceding year: 201.8). Group sales in the first nine months of 2008 rose
about 5% to approx. EUR 646 million (preceding year: 613.4). At approx. EUR
46.4 million (preceding year: 46.6), the adjusted EBIT remained nearly at
the previous year’s level. The adjusted EBIT margin amounted to 7.2% for
the period from January to September (preceding year 7.6%). The adjusted
EBITDA rose slightly to approx. EUR 56,1 million (preceding year 55.2) in
the nine-month comparison. 55.2). Operative cash flow before taxes on
income came to almost EUR 30,9 million (preceding year: 40.0). After nine
months, equity improved to about 21.9% (December 31, 2007: 19.5%).
For the full year, SAF-HOLLAND expects to report profitable earnings, even
in a significantly weaker business environment than most recently forecast.
In the face of the worsening economic situation and difficult sector
development, sales are expected to increase to about EUR 820 million
(preceding year: 812.5). The adjusted EBIT margin is forecast at around 6%
(preceding year: 7.4). SAF-HOLLAND has implemented a series of programs to
boost efficiency and reduce costs. As a first step, temporary workers have
been laid off and the workforce is to be slashed further by the end of the
year. Production sites in Europe and North America are to be shut down.
Other projects have either recently begun or are about to conclude, for
example with the aim of cutting logistics costs. SAF-HOLLAND will
especially benefit from these measures in fiscal year 2009. In the long
term, the Group will maintain its goal of achieving an adjusted EBIT margin
of 10% at a minimum sales volume of EUR 1 billion.
'This year, the Group has laid some important foundations for its future
development,' said Rudi Ludwig, CEO of the SAF-HOLLAND Group. 'On the one
hand, we have strengthened our basis for growth, for example through the
takeover of Georg Fischer Verkehrstechnik and the landing legs business of
Austin-Westran. On the other hand, we are continuously increasing
productivity. SAF-HOLLAND will also hold its ground in a tough market, and
quickly and flexibly adjust to an economic downturn. With its wide range of
products, the Group is now well positioned as a system partner for the
truck and trailer industry.'
With more than EUR 800 million in sales and approximately 3,000 employees,
SAF-HOLLAND S.A. is one of the 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
axle and suspension systems, fifth wheels, couplers, kingpins, and landing
legs. SAF-HOLLAND customers include the majority of large truck and trailer
producers all over the world. The products are sold to Original Equipment
Manufacturers (OEMs) and Original Equipment Suppliers (OESs) by means of a
global service and distribution network and via aftermarket channels
directly to the end users and service garages. SAF-HOLLAND has therefore
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.
07.11.2008 Financial News transmitted by DGAP