Business development progresses as planned
SAF-HOLLAND: Business development progresses as planned
* First quarter Group sales met expectations
* Stable earnings development, adjusted EBIT of EUR 13.8 million
* Adjusted result for the period increased by around 43 percent
* Positive outlook: for 2013 increase and sales and earnings expected
Luxembourg, May 16, 2013 - In the first three quarters of the current
financial year, SAF-HOLLAND generated Group sales of EUR 210.1 million
(previous year EUR 216.6 million). The globally-active supplier for the
truck and trailer industry thus achieved its sales goal for the first
quarter. Detlef Borghardt, CEO of the company: 'The first quarter met our
expectations and is in line with planning. We anticipate growth for
full-year 2013. We assume that sales development for this financial year
will be a mirror-image of the development in the previous financial year.
For this reason, we anticipate a somewhat restrained first half of the year
in 2013 and sales increases in the second half.'
Adjusted result for the period increased by 42 percent
SAF-HOLLAND's gross profit for the Group reached EUR 39.2 million (previous
year: 39.4 million) and was thus in line with the prior-year level. The
gross margin increased to 18.7 percent (previous year: 18.2 percent). With
an adjusted EBIT margin of 6.6 percent (previous year: 6.6 percent), the
adjusted EBIT amounted to EUR 13.8 million (previous year: EUR 14.4
million). On the earnings side, the company profited noticeably from the
optimization of corporate financing in the previous year. The adjusted
result for the period rose by 43.3 percent to EUR 8.6 million (previous
year: EUR 6.0 million). This equals 4.1 percent (previous year: 2.8) of
sales. Adjusted earnings per share improved to EUR 0.19 (previous year: EUR
0.14) despite the significantly higher average number of shares
outstanding.
Europe remains strongest region
With a share of 52.5 percent (previous year: 51.8 percent), more than half
of Group sales was generated in Europe. SAF-HOLLAND generated 40.9 percent
of total sales in North America (previous year: 42.0 percent) and 6.6
percent outside of the core markets (previous year: 6.2 percent). The
Trailer Systems Business Unit once again positioned itself as the largest
business segment, contributing 57.8 percent to Group sales (previous year:
55.8 percent). The Powered Vehicle Systems Business Unit provided 17.6
percent (previous year: 18.8 percent) and the Aftermarket Business Unit
contributed a share of 24.6 percent (previous year: 25.3 percent).
Trailer Systems with moderate sales increase
The Trailer Systems Business Unit increased sales in the first three months
to EUR 121.4 million (previous year: EUR 120.9 million). With an adjusted
EBIT margin of 2.5 percent (previous year: 3.3 percent), the adjusted EBIT
for the business segment declined to EUR 3.1 million (previous year: EUR
4.0 million). In addition to higher expenses for the sustainable
intensification of sales, planned higher expenses for research and
development also had an impact here. To sustainably increase the capacity
of the business unit we are currently working on a series of measures that
will particularly improve profitability.
Powered Vehicle Systems increased EBIT margin to 10 percent
In the Powered Vehicle Systems Business Unit, SAF-HOLLAND recorded sales
for the quarter of EUR 37.1 million (previous year: EUR 40.8 million), with
an optimized customer and product mix in North America as well as through
successful cost reduction measures, it was possible to significantly
increase the profitability of the Business Unit. The adjusted EBIT
increased to EUR 3.7 million (previous year: EUR 3.3 million), which caused
the adjusted EBIT margin to rise by nearly two percentage points to 10.0
percent (8.1 percent).
Aftermarket again with strong profitability
Quarterly sales of EUR 51.6 million was generated in the Aftermarket
Business Unit (previous year: 54.9 million). Adjusted EBIT improved to EUR
8.4 million (previous year: EUR 8.0 million) and the adjusted EBIT margin
increased to 16.3 percent (previous year: 14.6 percent). In the
medium-term, the business segment should contribute 30 percent to Group
sales. The steadily expanded sales and distribution channels as the product
portfolio, supplemented by secondary brands, create the promising
conditions necessary for this.
Operating cash flow positive
Cash flow from operating activities before income tax payments increased in
the first quarter to EUR 11.1 million (previous year: EUR 6.1 million).
Some customers, however, moved their payments forward in December 2011
resulting in a reduced cash inflow of approximately EUR 6.0 million in the
first quarter of 2012. In the first quarter, on the other hand,
non-recourse factoring led to a positive effect of EUR 7.4 million. The
comparatively lower operating cash flow before income tax in the first
quarter can be attributed in particular to the increase of inventories at
our Wylie plant which rose in the short term due to quality problems at a
supplier.
Equity ratio improved once again
The balance sheet total grew to EUR 557.2 million as of March 31, 2013
(December 31, 2012: 536.7 million); SAF-HOLLAND's equity increased to EUR
208.1 million (December 31, 2012: EUR 197.9 million). This results in an
equity ratio of 37.4 percent (December 31, 2012: 36.9 percent). On the same
date, SAF-HOLLAND had a total available liquidity of EUR 139.3 million
(December 31, 2012: EUR 140.5 million) - more than double the comparative
figure on the balance sheet date of the previous year (March 31, 2012: EUR
63.4 million).
Forecast confirmed - sales and earnings to increase in 2013
SAF-HOLLAND continues to expect business development to proceed according
to plan and confirms its sales and earnings goals for full-year 2013. In
line with these plans, the company expects a rather reserved first half of
the year due to the current market situation and a stronger business
development in the second half of the year. Insofar as the current
perspectives are not dampened by negative developments in finance and
economic policy, Group sales of between EUR 875 million and EUR 900 million
will be achieved in the current financial year. In terms of earnings,
SAF-HOLLAND continues to pursue an increase in adjusted EBIT of more than
EUR 60 million for 2013, leading to a stable or increasing EBIT margin.
Wilfried Trepels, CFO of SAF-HOLLAND: 'An indication of strong
profitability is the fact that earnings for 2013, from today's perspective,
in addition to the significant reduction of finance expenses, are not
impacted by one-time effects. This leads to the expectation of a clear
increase in the result for the entire period.'
SAF-HOLLAND continues to see considerable leverage for sustainable growth
in the expansion of the North American trailer business, in the global
broadening of the aftermarket business and continued penetration of the
BRIC markets. The company intends to grow organically in all three growth
areas. Targeted acquisitions in support of this growth are possible.
Assuming that the global economy gains stability, SAF-HOLLAND continues to
stick to its goal of achieving sales of EUR 1 billion and an adjusted EBIT
margin of 10 percent in financial year 2015.
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