SAF-HOLLAND S.A. / Key word(s): Quarter Results
19.05.2011 / 06:59
SAF-HOLLAND: Strong Growth Continues
- Sales increased by more than 60 percent to EUR 202.4 million in the first quarter of 2011
- Adjusted EBIT triples to EUR 14.6 million
- Market share increased
- Successful development in all business units and regions
Luxembourg, May 19, 2011 - SAF-HOLLAND S.A., a leading supplier for the global truck and trailer industry, remains on its successful path. In the first quarter of the current fiscal year, sales and earnings improved significantly compared to the same period of the previous year as well as in comparison to the fourth quarter of 2010. Sales increased by more than 60 percent to EUR 202.4 million (previous year: EUR 125.3 million). Adjusted EBIT tripled to EUR 14.6 million (previous year: EUR 4.8 million). All business units and regions contributed to the growth in sales and earnings.
Rudi Ludwig, CEO of SAF-HOLLAND: 'As the number one or two in our core markets, we are not only able to participate in market growth, we are also increasing our market share. Our lean structures and improved utilization of capacities added to the increased profitability. We are continually working on improving our efficiency.'
Equity ratio significantly improved
The Group generated 54.8 percent of its sales in Europe and 40.4 percent in North America. The remaining 4.8 percent stems from the other regions. The gross margin remains stable despite higher commodity prices at 18.8 percent (previous year: 18.9 percent). The adjusted result for the period continued its upward trend at EUR 4.9 million (previous year: EUR -1.6 million). Adjusted earnings per share were also positive again at EUR 0.22 (previous year: -0.08). Cash flow from operating activities before income tax payments climbed to EUR 10.8 million (previous year: EUR 7.2 million). Due to the successful capital increase as of the reporting date of March 31, 2011, the equity ratio rose to 26.1 percent (December 31, 2010: 5.1 percent). Settling bank debt with liquidity from the capital increase and the resulting balance sheet contraction will result in an equity ratio of over 30 percent.
Trailer Systems grows globally
The Trailer Systems Business Unit benefited from growth stimulus in all of SAF-HOLLAND's core markets. While having suffered the heaviest losses in comparison to the other two business units in 2008 and 2009, it is now recording the strongest growth. Sales more than doubled in comparison to the previous year at EUR 114.5 million (previous year: EUR 56.7 million). The gross margin increased to 9.6 percent (previous year: 3.4 percent) thanks to greater capacity utilization. The business unit contributed 56.6 percent (previous year: 45.3 percent) of sales. The Mid America Truck and Trailer Show in Louisville, USA, served as an opportunity to present the significantly expanded product portfolio for the trailer industry. With axle systems and air suspension systems designed to handle loads of more than 11 tons, SAF-HOLLAND now offers a complete product program for the American market.
Powered Vehicle Systems benefits from pent up demand
The Powered Vehicle Systems Business Unit made profit in Europe as well as North America. As a result of transport volumes returning to growth and pent up investment demand for fleets, the business unit recorded 35.6 percent growth in sales to EUR 37.3 million (previous year: 27.5 million). The gross margin amounted to 20.1 percent (previous year: 24.4 percent). Powered Vehicle Systems' share of Group sales was 18.4 percent (previous year: 21.9 percent).
Aftermarket shows sustained growth
The Aftermarket Business Unit of SAF-HOLLAND has built up a service and distribution network of about 10,000 locations worldwide. In the course of the general market revival, sales increased by 23.1 percent to EUR 50.6 million (previous year: EUR 41.1 million) in the first quarter. The gross margin once again increased significantly to 39.1 percent (previous year: 36.7 percent). This business segment contributes 25.0 percent (previous year: 32.8 percent) to Group sales.
Sustainable growth expected
Due to exceedingly successful business development in the first quarter, SAF-HOLLAND has raised its sales forecast for 2011: the Company now predicts an increase in sales of up to 25 percent compared to the previous year. A plus of 20 percent was previously expected. This optimistic estimate is based on the successful restructuring of the Company and stable growth in the commercial vehicles industry. This increase in sales will be linked to a significant improvement in earnings. Along with a normalization of sales volume, however, the product mix will also shift towards lower-margin standard products. Since all market research institutes currently expect very stable growth, SAF-HOLLAND also anticipates positive business development in 2012.
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 chart of key figures in included in the press release and can be accessed at: http://corporate.safholland.com/de/investor/finanznachrichten/pressemitt...
With sales of approximately EUR 630 million in 2010 and over 2,800 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, 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 June 2007 and has been in the SDAX since December 2010.
SAF-HOLLAND Group GmbH
Phone +49 6095 301-617
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