SAF-HOLLAND S.A. / Key word(s): Final Results
15.03.2012 / 07:46
SAF-HOLLAND exceeds sales and earnings targets
in financial year 2011
- Strong sales growth of 31.7% to EUR 831.3 million
- Adjusted EBIT increased at a disproportionately high rate of 54.4%
- Favorable business conditions expected for 2012 and 2013
Luxembourg, March 15, 2012 - SAF-HOLLAND, a leading supplier for the global truck and trailer industry, has exceeded its growth objectives in 2011. Sales rose significantly as compared to the previous year by 31.7% to EUR 831.3 million (previous year: EUR 631.0 million). Adjusted EBIT increased at a disproportionately high rate of 54.4% to EUR 57.3 million (previous year: EUR 37.1 million). As a result, the adjusted EBIT margin improved to 6.9% (previous year: 5.9%). All three Business Units contributed to the positive development.
Detlef Borghardt, CEO of SAF-HOLLAND: 'Our good business development resulted from the growth in transport volumes and continued pent-up demand in North America and Europe. At the same time, it confirms that we have correctly laid the groundwork for sustainable growth in the Group. The transfer of our technology expertise in the area of trailer axles to North America, the consistent expansion of our spare parts business and the expansion of our international activities are progressing well. SAFHOLLAND thus has further growth potential, which we will take advantage of in the coming years.'
Significant growth in the global market for commercial vehicles
The Group had sales of EUR 456.6 million in Europe in 2011 (previous year: EUR 311.3 million) while sales in North America were EUR 331.9 million (previous year: EUR 279.2 million). Sales in other regions amounted to EUR 42.8 million (previous year: EUR 40.5 million). The gross margin, influenced by rising material prices and a changed product and customer mix, was at 17.9% (previous year: 18.5%). The adjusted result for the period rose strongly from EUR 2.9 million in the previous year to EUR 27.3 million in 2011. Adjusted earnings per share increased more than fivefold and reached EUR 0.75 (previous year: EUR 0.14). Cash flow from operating activities before income tax payments also saw a positive development in 2011 with EUR 46.5 million (previous year: EUR 46.0 million). The days of inventory increased slightly to 48 days (previous year: 43 days). The structure of the balance sheet improved considerably with the successful capital increase and partial repayment of liabilities to banks. Equity also increased strongly as a result of the good earnings development to EUR 192.2 million (previous year: EUR 24.9 million) and the equity ratio reached 35.8% (previous year: 5.1%) as of the balance sheet date. Net debt (interest-bearing loans and borrowings minus cash and cash equivalents) fell significantly to EUR 159.7 million (previous year: EUR 302.1 million).
Trailer Systems with biggest sales increase
The Trailer Systems Business Unit recorded growth of 46.5% in 2011 as sales increased to EUR 472.8 million (previous year: EUR 322.8 million). The unit thus generated 56.9% of Group sales. The increase stimulated earnings which improved in relation to the adjusted EBIT to EUR 14.8 million (previous year: EUR
-9.0 million). The gross margin of 9.1% (previous year: 6.5%) was mainly influenced by the higher raw material prices, which couldn't immediately, and later only partially, be passed on. The significantly increased production of our own axle and new suspension systems for trailers in North America had a particularly positive effect. Production began in 2009. SAFHOLLAND is pursuing the goal of doubling the market share of this segment in North America in the coming years.
Powered Vehicle Systems benefits from a good market dynamic
The Powered Vehicle Systems Business Unit recorded significant sales growth in 2011 of 20.8% to EUR 154.0 million (previous year: EUR 127.5 million). Both in regard to the gross margin of 16.6% (previous year: 23.6%) and the adjusted EBIT of EUR 14.2 million (previous year: EUR 22.4 million), the segment was not able to maintain the above-average performance of the previous year. Rising material prices and material shortages as well as a finished project in September 2011 contributed to this. In this Business Unit, SAF-HOLLAND will introduce a new range of suspension systems for special vehicles at the end of 2012, creating a positive effect on earnings development in the segment by 2013 at the latest.
Aftermarket expanding profitability further
The Aftermarket Business Unit increased its sales in financial year 2011 by 13.2% to EUR 204.5 million (previous year: EUR 180.7 million). The segment remains SAF-HOLLAND's second largest Business Unit and contributed 24.6% to Group sales. As a result of the increase in sales, adjusted EBIT rose at a disproportionately high rate of 23.9% to EUR 32.1 million (previous year: EUR 25.9 million). The gross margin increased slightly to 39.6% (previous year: 37.9%). The spare parts business is less influenced by economic cycles and is a stabilizing factor for the Group with a good degree of profitability and sustainable growth potential. The mid-term target is to increase the segment's contribution to 30% of Group sales.
Number of employees increases once again
As a consequence of higher demand, the Group hired new employees in all regions. In the reporting year, the average of employees at SAF-HOLLAND was 3,107 (previous year: 2,619).
Continued positive business development expected
SAF-HOLLAND intends to continue the growth course and thereby also focus in future on strategic growth areas. This primarily consists of the expansion of Aftermarket business, extension of the North American market share in the Trailer Systems segment and increased commitment in BRIC countries. SAF-HOLLAND looks forward to favorable business development in 2012, depending on how things progress in Europe in relation to financial, political and economic issues. From today's perspective, the company also anticipates positive business development with further growth in sales for 2013.
EBIT was adjusted for the following items that are not originally attributable to the operating business: Depreciation and amortization from the purchase price allocation and reversals of impairment losses of intangible assets from impairment tests, as well as restructuring and integration costs.
The key figures included in the press release can be downloaded at
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 Trailer axle and suspension systems, fifth wheels, coupling devices, 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 July 2007 and the shares have been included in the SDAX since December 2010.
SAF-HOLLAND Group GmbH
Phone +49 6095 301-617
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