SAF-HOLLAND
Menü

Announcements

SAF-HOLLAND: Good business development in the first nine months

SAF-HOLLAND: Good business development in the first nine months
* Group sales increase to EUR 657.5 million
* Increased share of sales in North America
* Stable operating margin of 6.6 percent
* Refinancing finalized and equity ratio again increased

Luxembourg, November 8, 2012 - SAF-HOLLAND continues on a path to success.
In the first nine months of this year the globally active supplier for the
global truck and trailer industry increased Group sales by around 5 percent
to EUR 657.5 million (previous year: EUR 627.0 million). At the same time,
the company achieved an adjusted EBIT margin of 6.6 percent with an
adjusted EBIT of EUR 43.1 million.

In the core market North America, SAF-HOLLAND increased sales in the first
three quarters by 13.8 percent to EUR 280.5 million (previous year: EUR
246.4 million). The third quarter was the strongest in terms of sales over
the course of the entire year. Detlef Borghardt, CEO of SAF-HOLLAND: 'We
clearly recognize the influence of the rising modernization efforts and
pent up demand by fleet operators and freight forwarders on the North
American market. Additionally we gained further market share in the trailer
market.'

North America's share of Group sales increased to 42.7 percent (previous
year: 39.3 percent). The economically weaker region Europe contributed 50.7
percent (previous year: 55.8 percent) to total sales in the first nine
months. Although sales declined compared to the previous year period by 4.5
percent to EUR 333.7 million (previous year: EUR 349.6 million), the
business did appear more stable than the rest of the industrial sector -
evidence that the company is coping relatively well with the weakening of
this regional market.

SAF-HOLLAND also recorded significant sales increases in the emerging
markets in Asia, Eastern Europe and South America. In addition, there were
increased contributions from growing activities in the Middle East as well
as in Africa and Australia.

Gross margin increases to 18.2 percent of sales.
For the first nine months, the Group's gross profit rose to EUR 119.4
million (previous year: EUR 113.8 million). Accordingly, the gross margin
increased to 18.2 percent (previous year: 18.1 percent). The adjusted
result for the period in the amount of EUR 20.9 million (previous year: EUR
21.1 million) represents a share of 3.2 percent (previous year: 3.4
percent) of Group sales. Adjusted EBIT totaled EUR 43.1 million (previous
year: EUR 45.0 million) which in relation to sales results in an adjusted
EBIT margin of 6.6 percent (previous year: 7.2 percent). Here the
seasonally quieter summer months had an effect with longer plant closures
in Europe in comparison to the previous year. It must also be considered
that in 2011, earnings contributions from a project were included, a major
portion of which expired last year. If the contribution from this order is
not considered for the previous year, an improvement in the adjusted EBIT
margin of approximately 0.6 percentage points was achieved in the 2012
reporting period as compared to the previous year. Adjusted earnings per
share for the first nine months amounts to EUR 0.51 (previous year: EUR
0.60). It should be taken into account that as a result of the capital
increase in March 2011, the average number of shares outstanding increased
significantly to 41.2 million (previous year: 34.9 million shares).

Conclusion of the financial restructuring finalized
Due to significantly reduced interest expenses, the finance result improved
to EUR -13.1 million (previous year: EUR -20.2 million) and reflects the
significant successes of the company with initiatives for the optimization
of financing. The equity ratio increased once again and on September 30,
2012 was 38.3 percent (December 31, 2011: 35.8 percent). In the reporting
period, SAF-HOLLAND prepared the full repayment of all existing credit
financing, completed on October 5, 2012. With this refinancing as well as
the placement of a fixed-interest bond in the amount of EUR 75.0 million in
the Prime Standard segment of the German Stock Exchange on October 18, the
Group successfully concluded its financial restructuring.

Trailer Systems: Stimulus from pent-up demand
In the first nine months, the Trailer Systems Business Unit achieved sales
of EUR 361.5 million (previous year: EUR 362.2 million) and thereby
generated a 55.0 percent share of sales. In North America, the segment
benefited from pent-up demand for investments from freight forwarders and
fleet operators. The increasing interest in axle and suspension systems of
SAF-HOLLAND is ensuring additional stimulus. The business unit also showed
its strength in the European business, but was unable to completely avoid
the influences of the currently weaker market. Despite slightly lower sales
overall, the business segment increased its gross profit by 2.9 percent to
EUR 35.5 million (previous year: EUR 34.5 million). The gross margin
improved to 9.8 percent compared to 9.5 percent in the previous year
period.

Powered Vehicle Systems: Structures for more efficiency
The Powered Vehicle Systems Business Unit increased its sales in the first
three quarters by EUR 8.7 million to EUR 120.6 million (previous year EUR
111.9 million). It thereby contributed 18.3 percent of Group sales. The
gross profit of EUR 18.5 million (previous year: EUR 19.6 million) reflects
as expected the the missing contribution of the aforementioned project. The
gross margin amounted to 15.3 percent. In order to react flexible and fast
to the rather cyclical truck market, the optimization of the organizational
structure already begun here in the third quarter: Activities in other
countries on the continent will benefit from efficiency and capacity.

Aftermarket: Share of sales increased to 26.7 percent
In the Aftermarket Business Unit, sales increased by EUR 22.5 million or
14.7 percent to EUR 175.4 million (previous year: EUR 152.9 million). With
the considerable increase, the business unit, which is largely independent
of the economy, increased its share of Group sales to 26.7 percent. Chief
Financial Officer Wilfried Trepels: 'This positive development corresponds
to our strategic goal of increasing the business unit's share of total
sales to 30 percent in the medium term. For SAF-HOLLAND, the spare parts
business of the Aftermarket segment is an ideal addition to the original
equipment segment as both fields complement each other. Key for the
Aftermarket Business Unit is also its strong position as a source of
earnings. In the first nine months, it increased its gross profit to EUR
65.6 million (previous year: EUR 60.5 million). The gross margin reached
37.4 percent.

Focus remains on profitable growth
For 2012, SAF-HOLLAND again anticipates a stable earnings development with
Group sales of approximately EUR 850 million. Compared to 2011, this amount
would correspond to a growth in sales of 2.3 percent or 5.2 percent
adjusted for the project concluded in the previous year. As before, it is
assumed that the general economic European debt crisis will not worsen.
Under the same premise, SAF-HOLLAND also anticipates positive business
development with profitable growth for 2013.

Note:
EBIT was adjusted for the following effects which 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 axle and suspension systems for trailers, coupling devices,
kingpins and landing legs. 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 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
July 2007 and has been in the SDAX since December 2010.

Contact:
SAF-HOLLAND GmbH
Claudia Hoellen
Hauptstraße 26
63856 Bessenbach

Phone +49 6095 301-617
claudia.hoellensafholland.de

End of Corporate News


Michael Schickling
Director Investor Relations / Corporate Communications
Tel. +49 (0)6095 301 617

SAF-HOLLAND SE
Hauptstraße 26
D-63856 Bessenbach
Deutschland