SAF-HOLLAND S.A.: SAF-HOLLAND raises forecast as orders reach historic high

SAF-HOLLAND S.A. / Interim Report

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• Q3 2007 sales increase to €201.8 million, up 10% on constant currency
basis
• Adjusted EBITDA of €19.0 million
• Outlook FY 2007: Sales volume expected at around €800 million and
adjusted EBIT at around €60 million
• More than 15% growth forecast for 2008 


Luxembourg, 29 November 2007 – SAF-HOLLAND S.A., Luxembourg, a
world-leading producer and supplier of key systems and components for the
truck and trailer industries, today reported fast-rising sales in a market
where demand is at times outstripping supply. Increases in capacity
continuing into next year will assure that SAF-HOLLAND can meet demand and
move towards a target total sales volume of € 1 billion in 2009 and an
adjusted EBIT margin of 10% by 2010.

'SAF-HOLLAND is benefiting from booming trailer demand in Europe,' says
Rudi Ludwig, Chief Executive Officer. 'We are increasing capacity to try to
stay ahead of an ever-rising order backlog and we are raising our forecasts
significantly from their previous levels on the basis of framework
contracts agreed with our major customers. This unprecedented demand for
our products is evidence of a continuing period of high growth.'

Order book reaches historic high
Trailer business in particular continues to grow, based on a strong
European market. Trailer OEMs are currently experiencing very high levels
of demand in Europe. This has resulted in a strong surge in demand for
axles and axle systems. With the order book reaching a historic high, the
orders on hand for axles and axles systems increased steadily in the
European markets in the first nine months of 2007. These levels of demand
are expected to continue to rise because of increasing flow of trade
between Eastern and Western Europe. SAF-HOLLAND has increased its capacity
and will continue its expansion, but demand has outstripped current market
supply and as a result order backlog for axle production in Europe is up
250% year over year.

European sales for the Group grew by 28% over the period, so that Europe
now represents 62% of total Group sales (65% in Q3), underlining the
continued strong growth momentum in the European markets. Increased trailer
demand resulting from increased trade flows in the European market, and
thus an exceptionally strong demand for axle systems, underpins the
positive results for the Trailer Systems Unit. Trailer Systems sales grew
18% (constant currency) over the period. The softening of the North
American market as a result of the expected pre-buy of new trucks in 2005
and 2006, ahead of the new emission standards introduced in the US in 2007,
and will continue in 2008.

Production expansion continuing
SAF-HOLLAND’s significant investments have increased production capacity
from 220,000 axles to 320,000 axles per annum. Capacity expansion will
continue in order to meet long-term supply volumes agreed in framework
contracts with major customers. In addition, new high-performance products
are expected to further cement the Group’s leading market position.

Outlook
As a result of the continuing unprecedented high levels of demand for the
Group’s products and services, especially from East European markets and
Russia, the Group expects sales growth in 2008 of more than 15% and double
digit growth for 2009. SAF-HOLLAND expects further growth potential through
the start of axle production in the U.S. in the second part of 2008 and
through the new production plant in Brazil. The adjusted EBIT margin is
expected to be back on line with the 2006 margin of 8.4% for the fiscal
year 2008. On a mid-term perspective, the Company targets a total sales
volume of €1 billion in 2009 and an adjusted EBIT margin of 10% by 2010.



Sandra Fabian
Investor Relations

SAF-HOLLAND GmbH
Hauptstraße 26
63856 Bessenbach
Germany

Tel. +49 (0)6095 301 865 / +49 (0)172 839 5932
Fax +49 (0)6095 301 200
sandra.fabian@safholland.de


29.11.2007  Financial News transmitted by DGAP
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Language:     English
Issuer:       SAF-HOLLAND S.A.
              68-70, boulevard de la Pétrusse
              L-2320 Luxemburg
              Luxemburg
Phone:        +49 6095 301 - 0
Fax:          +49 6095 301 - 260
E-mail:       info@safholland.de
Internet:     www.safholland.com
ISIN:         LU0307018795
WKN:          A0MU70
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
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