DGAP-News: SAF-HOLLAND S.A.: Strengthened profitability in fiscal year 2013 led to achievement of dividend target

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| Source: EQS Group AG
DGAP-News: SAF-HOLLAND S.A. / Key word(s): Final Results
SAF-HOLLAND S.A.: Strengthened profitability in fiscal year 2013 led
to achievement of dividend target

13.03.2014 / 07:00

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SAF-HOLLAND: Strengthened profitability in fiscal year 2013 led to
achievement of dividend target

* Group sales reach EUR 857.0 million
* Adjusted EBIT rises to EUR 59.3 million
* Dividend of 0.27 per share proposed
* Outlook for 2014: Sales and earnings growth planned

Luxembourg, March 13, 2014 - SAF-HOLLAND, the globally active supplier to
the truck and trailer industry, further increased its sales in the core
market Europe in financial year 2013 and once again generated
disproportionate sales growth in emerging markets such as the BRIC
countries. In North America, the development was characterized by a
weakening of the market over the course of the year. Overall, Group sales
reached EUR 857.0 million (previous year: EUR 859.6 million). If currency
developments had remained stable, this would have resulted in total sales
of EUR 869.7 million for fiscal year 2013. SAF-HOLLAND once again recorded
progress in profitability. The Group's adjusted EBIT increased to EUR 59.3
million (previous year: EUR 58.2 million). The adjusted EBIT margin
improved to 6.9 percent (previous year: 6.8 percent). If currency
developments had remained stable in fiscal year 2013, this would have
resulted in an adjusted EBIT of EUR 60.1 million.


Vigorous demand at year-end
In Europe sales increased as compared to the previous year by EUR 13.0
million to EUR 447.9 million (previous year: EUR 434.9 million). With a
share in Group sales of 52.3% (previous year: 50.6%), Europe is the most
important region for SAF-HOLLAND. In the North American market, the
uncertain budgetary situation in the USA was particularly noticeable in
2013. Public cost-cutting policy as well as the government shutdown in the
fourth quarter and the related delay in awarding orders also affected
SAF-HOLLAND. Against this backdrop, sales in this region amounted to EUR
339.1 million (previous year: EUR 367.1 million).

Detlef Borghardt, CEO of SAF-HOLLAND: "As a result of the increasing demand
especially in Europe towards the end of 2013, we were able to get off to a
good start in 2014. At the same time, SAF-HOLLAND was able to prove itself
in North America. We are pleased with the well-filled order books in both
core markets."

SAF-HOLLAND once again recorded above average growth in 2013 in emerging
markets, such as BRIC countries, where total sales increased to EUR 70.0
million (previous year: EUR 57.6 million). The company thereby generated
8.2 percent of Group sales in emerging markets (previous year: 6.7
percent). In order to expand activities in BRIC countries, SAF-HOLLAND,
among other things, acquired 80 percent of the shares in the Chinese
company Corpco Beijing Technology and Development Co., Ltd. (Corpco). The
acquisition was agreed upon in 2013 and successfully concluded in January
2014.


Development of the Business Units
The largest Business Unit, Trailer Systems, increased its sales in 2013 to
EUR 485.7 million (previous year: EUR 473.5 million) and thereby
contributed 56.7 percent of Group sales (previous year: 55.1 percent).
Adjusted EBIT totaled EUR 10.6 million (previous year: EUR 11.7 million)
with an adjusted EBIT margin of 2.2 percent (previous year: 2.5 percent).
In order to significantly increase the Business Unit's profitability,
SAF-HOLLAND is already working on the implementation of a package of
measures that aim at improving the Business Unit's adjusted EBIT margin to
5 to 6 percent by the end of 2015. The package combines a wide range of
initiatives - from launching new products on the market and the expansion
of sales activities to a multitude of cost-saving and earnings-boosting
programs.

The Powered Vehicle Systems Business Unit generated annual sales of EUR
144.7 million (previous year: EUR 157.6 million). This Business Unit
focuses on the North American region where the market for class 8 heavy
trucks decreased by over 11 percent in the year 2013. Adjusted EBIT of the
Business Unit totaled EUR 12.4 million (previous year: EUR 14.7 million)
with an adjusted EBIT margin of 8.6 percent (previous year: 9.3 percent).
The realignment of the European organizational structures concluded in 2013
already showed initial positive effects.

The Aftermarket Business Unit generated annual sales of EUR 226.6 million
(previous year: EUR 228.5 million) corresponding to a 26.4 percent share in
Group sales (previous year: 26.6 percent). With a Parts Distribution Center
in Mexico as well as sales offices in Colombia, Peru and Argentina, the
spare parts business was particularly expanded further in Central and South
America in the reporting year. The Business Unit's adjusted EBIT increased
to EUR 36.3 million (previous year: EUR 31.8 million). In relation to
sales, this results in an improved adjusted EBIT margin of 16.0 percent
(previous year: 13.9 percent).


Cost structures nearly unchanged
SAF-HOLLAND's Group gross profit was approximately at the same level of the
previous year with EUR 155.6 million (previous year: EUR 156.2 million),
with an unchanged gross margin of 18.2 percent. Expenses for research and
development amounted to the same level as the previous year with EUR 18.0
million. Selling expenses were also approximately at the same level of the
previous year at EUR 53.3 million (previous year: 53.5 million). General
administrative expenses, on the other hand, decreased to EUR 38.0 million
(previous year: EUR 39.3 million). Earnings before tax in the reporting
year increased sharply to EUR 31.5 million, almost double the amount of the
prior year (previous year: EUR 16.0 million). In addition to the higher
operating result, this increase was primarily attributable to the improved
finance result of EUR -17.8 million (previous year: EUR -30.8 million). The
finance result was burdened by unrealized exchange rate losses of EUR 3.7
million (previous year: EUR 1.2 million).

Cash flow from operating activities before income tax increased in the
reporting year to EUR 63.0 million (previous year: EUR 59.5 million).
Investments which benefit the company's competitive position remained the
target. Major points of focus included the expansion of production
capacities within the core markets of Europe and North America as well as
the one-time expenses in the course of a global IT project. SAF-HOLLAND
invested a total of EUR 23.2 million throughout the Group in financial year
2013 (previous year: EUR 22.3 million).


Dividend requirement fulfilled
SAF-HOLLAND's capital structure improved once again. As of December 31,
2013, equity amounted to EUR 222.2 million (previous year: EUR 197.9
million). The equity ratio increased to 41.4 percent (previous year: 36.9
percent). Wilfried Trepels, CFO of SAF-HOLLAND: "We were able to achieve
our longstanding goal and at the same time fulfilled the requirement for a
potential dividend payment. The Annual General Meeting on April 24, 2014
will be recommended a dividend of EUR 0.27 per share as a result." This
would result in a total distribution amount of EUR 12.2 million, which
corresponds to a 50 percent share of available net earnings.

Based on the year's average, SAF-HOLLAND had 3,106 employees worldwide
(previous year: 3,118), roughly half of these were in North America,
approximately 39 percent in Europe and 14 percent were at locations outside
of the two core markets.

Adjusted EBIT to increase to at approximately EUR 70 million in 2014
SAF-HOLLAND considers itself well-positioned for its continued growth path
in the global commercial vehicles markets. For the current financial year,
the company aims to achieve sales growth of approximately 10 percent to EUR
920 to 945 million with the support of the industry's good growth
forecasts. In terms of earnings, an increase in adjusted EBIT to
approximately EUR 70 million with a growing adjusted EBIT margin is
expected. The forecast for 2014 is based on an overall positive European
economic development with the continued improvement of the European
sovereign debt crisis along with the improvement of industry indicators for
North America and Europe. SAF-HOLLAND's medium-term target for the year
2015 remains Group sales of between EUR 980 million to EUR 1.035 billion
with an adjusted EBIT margin of 9 to 10 percent.


Notes:
EBIT was adjusted for the following items that are not originally
attributable to the operating business: Depreciation and amortization from
the purchase price allocation and reversals of impairment of intangible
assets from 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 sales of approximately EUR 860 million in 2013 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 trailer axle systems and suspension systems, coupling devices,
kingpins, and landing legs among other things. SAF-HOLLAND sells its
products on six continents to Original Equipment Manufacturers ("OEM") in
the replacement parts market and, in the aftermarket business, to the OEM's
Original Equipment Suppliers ("OES"), as well as by means of a global
service and distribution network. SAF-HOLLAND also sells its products to
end users and service centers using this network. SAF-HOLLAND has
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

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13.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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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  
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