Publication of Insider Information pursuant to Article 17 of Directive (EU) No. 596/2014 - (MAR)

SAF-HOLLAND S.A.: SAF-HOLLAND S.A. revised outlook for fiscal year 2019
 

Luxembourg, September 23, 2019. SAF-HOLLAND S.A. ("SAF-HOLLAND") today adjusted its outlook for fiscal year 2019.
 

SAF-HOLLAND now expects Group sales for fiscal year 2019 to range from EUR 1,260 million to EUR 1,300 million (previous year EUR 1,301 million), corresponding to a rate of change between 0 per cent and minus 3 per cent (previous expectation: sales growth of 4 to 5 per cent). The adjusted EBIT margin is now expected in a range of 6.0 per cent to 6.5 per cent for the full year (previous expectation: around the midpoint of the range of 7 per cent to 8 per cent).
 

Furthermore, SAF-HOLLAND also anticipates the investment volume to be lower, amounting to between EUR 58 million and EUR 63 million (previous expectation: EUR 68 million to EUR 70 million). SAF-HOLLAND expects the fourth key indicator, net working capital in relation to Group sales, to be in a range of 13 per cent to 14 per cent (previous expectation: 13 per cent).
 

The revised outlook is in particular the result of the continued deterioration in overall economic conditions - particularly in Europe, China and India - the ongoing global trade disputes and the related impact on the market development for trucks and trailers. The significant year-on-year improvement in earnings in the Americas region during the period from January to August 2019 could compensate only slightly for the lower earnings contributions of the other regions.
 

In the absence of positive economic and market signals and taking into account potential risks and opportunities, SAF-HOLLAND expects the negative trend of the last months to continue until the end of the year. Furthermore, following a full review of the China operations and further restructuring measures in the course of the ramp-up of the plant in Yangzhou, additional impairments on receivables and inventories are to be expected.
 

In view of the developments outlined above, the Group forecast for the fiscal year 2020 can no longer be maintained. The Company plans to announce its guidance for the coming fiscal year with the publication of the final financial figures for the fiscal year 2019.

Contact:
SAF-HOLLAND Group
Michael Schickling
Hauptstraße 26
63856 Bessenbach

Phone +49 6095 301-617
michael.schickling@safholland.de