DGAP-News: SAF-HOLLAND S.A. / Key word(s): Final Results SAF-HOLLAND S.A.: Business volume 2012 successfully expanded 14.03.2013 / 07:00 --------------------------------------------------------------------- SAF-HOLLAND: Business volume 2012 successfully expanded * Group sales target of EUR 859.6 million achieved * Stable earnings development: Adjusted EBIT of EUR 58.2 million * Capital structure improved: Equity ratio of 36.9 percent * Outlook for 2013: Increase in sales and earnings expected Luxembourg, March 14, 2013 - SAF-HOLLAND continued its profitable growth path in financial year 2012. The global supplier for the truck and trailer industry increased Group sales by EUR 28.3 million to EUR 859.6 million. Adjusted EBIT totaled EUR 58.2 million (previous year: EUR 58.0 million), thus meeting the goal of stable earnings development to the full extent. The adjusted result for the period also increased further, reaching EUR 28.4 million (previous year: EUR 24.2 million). Adjusted earnings per share thus improved to EUR 0.68 (previous year: EUR 0.66) despite the significantly higher average number of shares outstanding. Strong growth in North American core market SAF-HOLLAND generated around half of the Group's sales in Europe, where it was possible to counter the declining market environment in financial year 2012. Although sales in this region of EUR 434.9 million (previous year: EUR 456.6 million) developed weaker than in the prior year, they were nonetheless more stable than the overall European market. As a result of high growth rates in other regional markets, SAF-HOLLAND managed to more than compensate for slightly decreasing European sales. The business volume in North America thus increased by 10.6 percent to EUR 367.1 million (previous year: EUR 331.9 million) and in countries outside the established core markets by 34.6 percent to EUR 57.6 million (previous year: EUR 42.8 million). Detlef Borghardt, CEO of SAF-HOLLAND: 'Our geographic diversification and broad positioning with three attractive business segments once again proved to be an advantageous strategy in 2012. The positive business development of the past year clearly shows that we can easily absorb economic fluctuations. Important to mention is the fact, that the business figures in fiscal year 2011 included earnings contributions from a project, which expired as planned in the third quarter 2012. If these earnings effects are not considered, the adjusted EBIT margin for 2012 even increases by around 0.6 percentage points. ' Growth in all business segments SAF-HOLLAND's worldwide growth was supported by all business segments. About 55 percent of Group sales was provided by the Trailer Systems Business Unit, which generated EUR 473.5 million (previous year: EUR 472.8 million). In the previous financial year 2011, this segment had increased its sales as compared to the prior year by 46 percent, thus reaching a record level which, in 2012, it was possible to sustainably consolidate. Sales volume developed positively primarily in North America, where the business unit profited from pent-up investment demand among freight forwarders and fleet operators as well as from increasing interest in their axle and suspension systems. The gross margin for the business segment improved slightly to 9.3 percent (previous year: 9.1 percent). The adjusted EBIT reached EUR 14.3 million (previous year: EUR 14.8 million), largely corresponding to the prior year level. The Powered Vehicle Systems Business Unit increased sales to EUR 157.6 million (previous year: EUR 154.0 million) and once again accounted for around 18 percent of total sales. The adjusted EBIT of the segment rose at an even greater rate than sales, recording a growth of about 10 percent to EUR 15.6 million (previous year: EUR 14.2 million). The gross margin increased to 16.8 percent (previous year: 16.6 percent). The business segment thus managed to fully compensate, both in terms of sales and on the earnings side, for an extensive project order, major parts of which expired as planned in the third quarter of 2011. In addition to the improved customer structure, an optimized product mix contributed to this development. The Aftermarket Business Unit once again proved to be a reliable driver of growth. The business segment, which is largely independent from economic cycles, achieved a sales increase of 11.7 percent to EUR 228.5 million (previous year: EUR 204.5 million). As a result, the segment's share of Group sales increased to 26.6 percent (previous year: 24.6 percent). In the medium-term, SAF-HOLLAND wants to generate one third of its total sales in the aftermarket business and, in so doing, sustainably expand the Group's independence from market developments related to the economic cycle. With a gross profit of EUR 85.8 million (previous year: EUR 81.0 million) and a correspondingly high gross margin, the company's second biggest business segment again highlighted its important role as an earnings driver. Adjusted EBIT for the Business Unit increased to EUR 33.1 million (previous year: EUR 32.1 million). Significant increase in cash flow from operating activities In the Group, SAF-HOLLAND increased net profit to EUR 156.2 million (previous year: EUR 148.8 million), which represents an improved gross margin of 18.2 percent (previous year: 17.9 percent). On the cost side, the focus was on laying the groundwork for further, sustainable growth. The company increased expenditures for research and development as planned by about one fifth to EUR 18.0 million (previous year: EUR 14.9 million). For global sales, EUR 53.5 million (previous year: EUR 48.7 million) was invested. Cash flow from operating activities before income tax payments increased to EUR 59.5 million (previous year: EUR 46.5 million). Contributing to this, among other things, was a non-recourse factoring agreed in 2012 which amounted to EUR 7.8 million at the end of the reporting year, thus nearly compensating for the in 2011 suspended discount program for customers in the USA. Improved financing strengthens equity and liquidity The capital structure was also further optimized. On December 31, 2012 the equity of SAF-HOLLAND was EUR 197.9 million (previous year: EUR 175.6 million). On the same date, the equity ratio reached 36.9 percent (previous year: 32.4 percent). With the closing of a new syndicated loan in October 2012 and the associated early repayment of existing credit lines as well as the emission of a corporate bond in November 2012, SAF-HOLLAND completed the decisive step toward the reorganization of the financing structure. The advantages associated with this became visible already in the reporting year: liabilities from interest-bearing bank loans as of December 31, 2012 decreased to EUR 160.4 million (December 31, 2011: EUR 175.0 million). Net debt on the same date decreased to EUR 141.8 million (December 31, 2011: EUR 159.7 million). Including the agreed credit facility, SAF-HOLLAND had available on December 31, 2012 a total liquidity that was nearly double as compared to the prior year of EUR 140.5 million (previous year: EUR 70.7 million). Wilfried Trepels, CFO of SAF-HOLLAND: 'The optimized financing structure gives us considerable stability and secures our growth on the financial side over the long term. In addition, we achieved significantly greater financial flexibility and favourable conditions. In the past financial year alone, we were able to reduce interest expenses in the amount of about EUR 6.3 million.' Number of employees generally stable Worldwide, SAF-HOLLAND employed an average of 3,118 people in financial year 2012 (previous year: 3,107) with the largest number of locations in North America. In order to further expand the company's technological edge, around 5 percent of all employees work in the fields of development, application engineering and testing. In the reporting year, SAF-HOLLAND registered a total of 20 new patent families and numerous associated partial or supplementary registrations. On the way to EUR 1 billion sales With the results of the election in Italy, uncertainty over the future course of the financial and economic crisis in the euro zone has increased. In addition, the sovereign-debt crisis in the American economic area is once again in the spotlight. Against this background, SAF-HOLLAND anticipates an initial reserved sales development in both regions in 2013 which should then pick up in the second half of the year. Assuming that the European economy recovers slightly as forecast, Group sales of between EUR 875 million and EUR 900 million are targeted for the full-year 2013. The sales growth should be accompanied by an adjusted EBIT of above EUR 60 million which would result in a stable or increasing adjusted EBIT margin. Furthermore, no major one-time negative effects on earnings in fiscal year 2013 are anticipated. As a consequence a significant improvement in the actual result for 2013 is expected. The medium-term goal of SAF-HOLLAND continues to be to achieve Group sales of EUR 1 billion in 2015 with an adjusted EBIT margin of 10 percent. This is based on the condition that the global economy becomes more stable. The company continues to see particular growth potential in three areas: expansion of the North American market share in the Trailer Systems segment, a broadening of the aftermarket business around the world and increasing involvement in the BRIC countries. Notes: In financial year 2012, SAF-HOLLAND applied the new accounting standard IAS 19R. This impacts the consolidated financial statements in particular with regard to the consolidated statement of comprehensive income, the consolidated balance sheet and the statement of changes in equity of the Group. For better comparability, IAS 19R was applied retroactively to the financial year 2011, which has led to corresponding adjustments of the previous year figures. More detailed information can be found in the SAF-HOLLAND Annual Report 2012 on page 60. 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. 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 HauptstraÃe 26 63856 Bessenbach Phone +49 6095 301-617 claudia.hoellensafholland.de End of Corporate News --------------------------------------------------------------------- 14.03.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: SAF-HOLLAND S.A. 68-70, boulevard de la Pétrusse L-2320 Luxembourg Grand Duchy of Luxembourg Phone: +49 6095 301 - 0 Fax: +49 6095 301 - 260 E-mail: info@safholland.de Internet: www.safholland.com ISIN: LU0307018795, DE000A1HA979, WKN: A0MU70, A1HA97 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 203857 14.03.2013
DGAP-News: SAF-HOLLAND S.A.: Business volume 2012 successfully expanded
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