Good sales development in the second quarter (news with additional features)
SAF-HOLLAND: Good sales development in the second quarter
* Half-year figures above expectations
* Slight increase in adjusted EBIT
* Significant improvement of result for the period
* Sales and earnings goals for 2013 confirmed
* Trailer Systems: series of measures to increase earnings by 2015
Luxembourg, August 8, 2013 - At SAF-HOLLAND, the globally active supplier
to the truck and trailer industry, the pace of business development
increasingly picked up over the course of the first half year. Group sales
in the second quarter increased by 7.3 percent as compared to the first
quarter. For the first half of 2013, a sales volume of EUR 435.6 million
was reported (previous year: EUR 440.3). Development of the adjusted
earnings figures was consistently positive in the Group. Detlef Borghardt,
CEO of SAF-HOLLAND: 'The good progress in terms of sales and earnings
confirm our planning for the full year in which we anticipate a stronger
second half as compared to financial year 2012.'
Benefits from optimized company financing
In the Group, SAF-HOLLAND achieved gross profit of EUR 80.3 million
(previous year: EUR 80.9 million), which represents a stable gross margin
of 18.4 percent. Adjusted EBIT amounted to EUR 29.8 million (previous year:
EUR 29.7 million) and the adjusted EBIT margin reached 6.8 percent
(previous year: 6.7 percent). As a direct effect of the optimization of
company financing in 2012, the adjusted result for the period grew by 6.4
percent to EUR 16.6 million in the first half of the year (previous year:
EUR 15.6 million). Adjusted earnings per share fell slightly to EUR 0.37
(previous year: EUR 0.38) - a consequence of the increase in the number of
shares in the past year to 45.4 million shares (previous year: 41.2 million
shares).
Growing contribution from emerging countries
SAF-HOLLAND generated the largest portion of sales in Europe with 52.1
percent (previous year: 51.6 percent). 40.2 percent of sales were generated
in North America (previous year: 42.1 percent) and the regions outside of
the two core markets - primarily the BRIC countries and other emerging
markets - increased their share to 7.7 percent (previous year: 6.3
percent).
The Trailer Systems Business Unit once again positioned itself as the
strongest source of sales with a share of Group sales totaling 57.2 percent
(previous year: 55.1 percent). The Powered Vehicle Systems Business Unit
contributed 17.3 percent (previous year: 18.6 percent) and the Aftermarket
Business Unit added 25.5 percent (previous year: 26.3 percent). All
business segments reported sales increases as compared to the first three
months of the year.
Trailer Systems: Upward trend in the second quarter
In the Trailer Systems segment, SAF-HOLLAND was able to increase its sales
in the first half of the year to EUR 249.2 million (previous year: EUR
242.8 million). The upward trend was apparent primarily during the second
quarter, in which the sales volume for the segment grew by 4.8 percent as
compared to the same period in the previous year. Adjusted EBIT of EUR 6.8
million (previous year: EUR 7.9 million) and the adjusted EBIT margin of
2.7 percent (previous year: 3.3 percent) were impacted in particular by
higher guarantee costs which were incurred in connection with sales from
the years prior to the crisis in 2008 / 2009 with above-average production
figures, in addition to higher sales and R&D expenses. An international
package of measures was developed for the sustainable optimization of
profitability in the Trailer Systems segment. These measures will help to
reach the adjusted EBIT margin for the entire Group of 10 percent in 2015.
Powered Vehicle Systems: adjusted EBIT margin of nearly 10 percent
The Powered Vehicle Systems Business Unit recorded sales of EUR 75.5
million (previous year: EUR 81.7 million) in the first six months. As in
the previous year, adjusted EBIT was EUR 7.2 million and the adjusted EBIT
margin reached 9.6 percent (previous year: 8.7 percent). The Business Unit
Powered Vehicles System could benefit from favorable customer and product
mix. SAF-HOLLAND is continuing the measures introduced for the optimization
of the European organizational structures in this business unit.
Aftermarket: Sales increase from April onwards
In the Aftermarket Business Unit sales in the second quarter increased
significantly as compared to the first three months of this year by 14.9
percent. There are a number of reasons why sales in the first half of the
year of EUR 110.9 million (previous year: EUR 115.8 million) were below the
level of the previous year, as expected. At the beginning of the previous
year, the Business Unit benefited from orders that were carried forward
from 2011 to 2012. In the first half of this year, on the other hand,
additional factors arose such as the supply-related delays in the market
launch of a new product in North America and bottlenecks in personnel in
China, for example. Adjusted EBIT in the Business Unit improved to EUR 18.8
million (previous year: EUR 16.7 million) and an adjusted EBIT margin of
16.9 percent (previous year: 14.4) was achieved.
Clear increase in operating cash flow
Cash flow from operating activities before income tax increased to EUR 36.4
million in the reporting period (previous year: EUR 23.6 million). It
should be taken into consideration that in the previous year cash inflow
was unusually low because customer payments had been brought forward to
December 2011. In the first half year of 2013, on the other hand, positive
effects from the intensive utilization of the non-recourse factoring led to
an additional cash inflow.
Equity ratio of 40 percent targeted
As of June 30, 2013, total assets rose to EUR 556.3 million (December 31,
2012: EUR 536.7 million). As a result of the increase in equity to EUR
209.4 million (December 31, 2012: EUR 197.9 million) it was possible to
achieve an equity ratio of 37.6 percent (December 31, 2012: 36.9 percent)
despite the higher balance sheet total. The company is thus a step closer
to the targeted goal of a ratio of around 40 percent. Total liquidity as of
June 30, 2013 was EUR 149.7 million (previous year: EUR 64.5 million /
December 31, 2012: EUR 140.5 million).
Adjusted EBIT to increase to at least EUR 60 million in 2013
SAF-HOLLAND started the second half of the year with well-filled order
books. Insofar as the current forecasts are not blurred by negative
financial and economic developments, the company continues to anticipate
Group sales of between EUR 875 million and EUR 900 million for the
financial year 2013. The sales volume that is achievable depends on the
pace of the market upswing in Europe and North America. As before, on the
earnings side an adjusted EBIT of at least EUR 60 million in 2013 has been
targeted. Depending on the sales volume, this results in an increasing or
at least stable adjusted EBIT margin. Wilfried Trepels, CFO of SAF-HOLLAND:
'As from today's perspective, the result for the current financial year
will not be influenced by significant burdening one-time effects such as
effects from refinancing, we expect for 2013 a substantial increase in our
result for the period'.
Assuming that the global economy gains stability, SAF-HOLLAND stands by its
goal of achieving sales of EUR 1 billion and an adjusted EBIT margin of 10
percent in financial year 2015. Good prospects are offered in particular by
the two core markets of Europe and North America with their substantial
pent-up demand in trucks and trailers. The trailer market in North America,
global activities in the Aftermarket business and the commitment in the
BRIC countries remain at the core of the growth strategy. SAF-HOLLAND wants
to grow organically in all three areas. The development of market
activities through smaller, rounding acquisitions is also conceivable.
Notes:
For financial years beginning on or after January 1, 2013, IAS 19R, the
amended version of the accounting standard IAS 19 'Employee Benefits', is
valid. SAF-HOLLAND had already taken the amened standard into account in
the preparation of its consolidated financial statements for 2012. The
previous version, IAS 19, was applied for the interim financial statements
of the past financial year. IAS 19R has been used for interim financial
reporting since the beginning of 2013. In line with IFRS and for better
comparability, the new standard will also be applied retroactively to the
respective reporting periods in the previous year.
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 turnover of approximately EUR 860 million in 2012 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 axle and suspension systems for trailers, coupling devices,
kingpins and landing legs. SAF-HOLLAND sells its products on six continents
to Original Equipment Manufacturers (OEMs) in the replacement parts market
and, in the aftermarket business, to the OEM's Original Equipment Suppliers
(OESs), as well as by means of a global service and distribution network.
Through this network, SAF-HOLLAND re-sells its products to end users and
service centers. SAF-HOLLAND has thus 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
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=XMPWFGWPVI
Document title: Results Q2/2013 SAF-HOLLAND S.A