SAF-HOLLAND: Maintaining Modest Growth Course
Bessenbach, Germany, October 9, 2008 – SAF-HOLLAND S.A. is continuing its
growth trend even in the 2008 of 2008 fiscal year. However, the increase in
sales and earnings will be weaker than originally forecasted. The
determining factors behind this are the repercussions of the financial
crisis, the volatile trend for commodity prices, and in particular, the
continuing high level of the diesel price. Based on the development of
business in the third quarter and the insights gained from the IAA in
Hanover, the Company is now expecting an increase in sales of up to 5% to
around EUR 850 million (previous year: EUR 812.5 million) and an adjusted
EBIT margin at approximately the same level as the previous year.
'Thanks to our solid business model, we will continue to grow despite the
weak environment. A contributing factor will be the commencement of
production of axle systems at our North American plant in Warrenton,
Missouri, in the fourth quarter. Additionally, the Company has newly
negotiated customer contracts with internationally operating manufacturers
from China and North America over multi-year terms. With this year’s
company acquisitions, we have solidified our unique position as a global
supplier and secured additional sales potential in Europe and Asia. We are
confident of our ability to continue on the successful path our Company has
already begun,' said Rudi Ludwig, CEO of SAF-HOLLAND Group.
On October 6, SAF-HOLLAND successfully completed the acquisition of Georg
Fischer Verkehrstechnik GmbH, a former subsidiary of Georg Fischer AG. By
acquiring the number two manufacturer of fifth wheels, trilex wheels, and
kingpins in the European market, the Company has rounded out its product
range in Europe and positioned itself as an international supplier and
partner of the truck industry around the world.
SAF-HOLLAND has already introduced a package of measures aimed at reducing
costs, which includes not only a reduction in net working capital but also
an adjustment of investments and a cutback in logistics and personnel
expenses. The Company can additionally take advantage of its flexible
structuring and thus quickly implement the following measures:
• Reducing capital tied up in inventories
• Focusing investments in the growth markets of China and Brazil
• Reducing transportation and storage costs on the basis of a new logistics
concept
• Promoting the consolidation of worldwide production sites
• Consolidating Chinese business activities to one site
• Reducing costs in all overhead areas around the world
For 2009, in addition to positive developments from acquisitions and axle
production in North America, SAF-HOLLAND expects further growth from the
Brazilian, Chinese, and Russian markets. The Company already has in hand
signed declarations of intent for new large orders from North American and
Chinese manufacturers across the entire range of products. This confirms
SAF-HOLLAND’s strong position as a comprehensive supplier of product
systems. SAF-HOLLAND will provide a more detailed forecast when it
announces third-quarter results on November 19.
Company portrait
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.
09.10.2008 Financial News transmitted by DGAP