DGAP-News: SAF-HOLLAND S.A.: Successful start in financial

DGAP-News: SAF-HOLLAND S.A. / Key word(s): Quarter Results SAF-HOLLAND S.A.: Successful start in financial year 2014 15.05.2014 / 07:10 --------------------------------------------------------------------- SAF-HOLLAND: Successful start in financial year 2014 * Group sales increased by 12 percent to EUR 235.3 million * Adjusted EBIT grows significantly by 24% to EUR 17.1 million * Good sales growth especially in European core market * Sales and earnings targets for 2014 confirmed Luxembourg, May 15, 2014 - SAF-HOLLAND, the globally active supplier for the truck and trailer industry, had a successful start in the current financial year. In the first quarter, the company increased Group sales by 12 percent to EUR 235.3 million (previous year: EUR 210.1 million). SAF-HOLLAND benefited primarily from the significant expansion of business volume in Europe. This was on top of a marked sales increase in emerging markets such as the BRIC countries. Earnings figures also developed positively in the first three months. Adjusted EBIT in the Group increased by 23.9 percent, reaching EUR 17.1 million (previous year: EUR 13.8 million). As a result of the marked increase, the adjusted EBIT margin improved to 7.3 percent (previous year: 6.6 percent). Adjusted earnings per share grew to EUR 0.21 (previous year: EUR 0.19) while average number of shares remained the same at 45.4 million. Strong growth in Europe and emerging countries In its European core market, SAF-HOLLAND expanded quarterly sales by 20.5 percent to EUR 132.8 million (previous year: EUR 110.2 million). Due to the increase of EUR 22.6 million, the region's share of Group sales rose to 56.4 percent (previous year: 52.5 percent). Detlef Borghardt, CEO of SAF-HOLLAND: "With our preparations in the fourth quarter of 2013 for the expected higher demand, we were able to benefit from growth in the commercial vehicles market in Europe to a disproportionately high extent and further expand our share in this important market." In the emerging regions, business volume grew by 40.3 percent to EUR 19.5 million (previous year: EUR 13.9 million). The regions' share of Group sales thus increased to 8.3 percent (previous year: 6.6 percent). The newly-acquired Corpco Beijing Technology and Development Co., Ltd. (Corpco), a leading Chinese manufacturer of suspension systems for buses, was consolidated for the first time. In North America SAF-HOLLAND was able to benefit from the positive market forecasts and rising demand regarding standard products for trucks in the first quarter 2014. On the other hand the still reluctant demand by the US Government after the resolution of the budget crisis in USA led to an unfavorable product mix for SAF-HOLLAND compared to the first quarter 2013. Until the end of March, SAF-HOLLAND achieved sales in line with planning in North America of EUR 83.0 million (previous year: EUR 86.0 million). Currency adjusted, North American sales of EUR 86.0 million were at the level of the previous year. The region's contribution to Group sales reached 35.3 percent (previous year: 40.9 percent). Trailer Systems: strong increase in sales and earnings The Trailer Systems Business Unit increased its quarterly sales by 16.1 percent to EUR 140.9 million (previous year: EUR 121.4 million), which increased the Business Unit's contribution to Group sales to 59.9 percent (previous year: 57.8 percent). The adjusted EBIT of SAF-HOLLAND's largest business segment was thus more than doubled. In the reporting period it totaled EUR 5.4 million (previous year: EUR 2.3 million) with an adjusted EBIT margin of 3.9 percent (previous year: 1.9 percent). In addition to volume effects, the significantly higher profitability reflects the measures the company initiated in the second half of 2013 which are aimed toward significantly raising the profitability of the business segment. Steffen Schewerda, Managing Director of the Trailer Systems Business Unit: "We are progressing as planned with the implementation of our package of measures, especially with regard to the plant consolidation. Overall, by the end of 2015, the package of measures should help us to improve the adjusted EBIT margin of the Business Unit by around three percentage points as compared to financial year 2012." Powered Vehicle Systems: business develops as planned The sales volume of SAF-HOLLAND's Powered Vehicle Systems Business Unit reached EUR 36.5 million in the first quarter (previous year: EUR 37.1 million). This segment thus generated 15.5 percent of Group sales (previous year: 17.6 percent). Unlike the Group as a whole, the Business Unit generates a majority of its sales in North America, which is why the unfavorable currency situation in the translation from Canadian and US dollars to Group currency euro had a negative impact. While the Business Unit Powered Vehicle Systems was able to benefit from the positive market forecasts and rising demand regarding its standard products for trucks in the first quarter 2014, sales and earnings in the Business Unit were also impacted by the still reluctant procurement activities of the Government after the resolution of the budget crisis in the USA. The hesitant awarding of orders led to a more unfavorable product mix as compared to the first quarter 2013. Furthermore, a seasonally-related weaker first quarter in connection with the integration of Corpco also had an impact. Adjusted EBIT for the Business Unit amounted to EUR 2.1 million (previous year: EUR 3.4 million) with an adjusted EBIT margin in line with planning of 5.7 percent (previous year: 9.2 percent). For fiscal year 2014 SAF-HOLLAND expects to benefit from the forecast of double-digit growth rates for class 8 trucks in North America. Aftermarket: ongoing profitable growth In the Aftermarket Business Unit, sales in the first three months increased to EUR 57.9 million (previous year: EUR 51.6 million). As in the same period from the previous year, SAF-HOLLAND thus generated 24.6 percent of Group sales in the Aftermarket business. Adjusted EBIT for the Business Unit increased to EUR 9.6 million (previous year: EUR 8.1 million) with an adjusted EBIT margin of 16.6 percent (previous year: 15.7 percent). Following the expansion of the company's presence in Central and South America in 2013, the Business Unit this year is focusing on opening up further emerging markets in the South East Asia region. The Parts Distribution Center opened by SAF-HOLLAND in Malaysia in March of this year provides a promising foundation for these efforts. Investments: expansion of global activities Over the course of the first three months of the year, SAF-HOLLAND invested on a Group-wide basis a total of EUR 8.5 million (previous year: 5.6 million) in the expansion of its business volume. The company's key investment projects in the current year will include the expansion of business operations in Dubai. In addition to the existing Aftermarket business, assembly capacities for the Business Units Trailer Systems and Powered Vehicle Systems will be created there. From Dubai SAF-HOLLAND serves markets in both, the Middle East as well as North and Central Africa. Outlook confirmed Assuming that the overall economic, political and industry-specific environment does not take a turn for the worse, SAF-HOLLAND continues to anticipate Group sales of between EUR 920 million and EUR 945 million for full-year 2014. On the earnings side, the company is targeting an adjusted EBIT of approximately EUR 70 million for full-year 2014 with a rising adjusted EBIT margin. The medium-term target of a growth course in the worldwide commercial vehicles markets is also confirmed. For financial year 2015, SAF-HOLLAND thereby still plans Group sales of EUR 980 million to EUR 1.035 billion and 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: 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. The key figures chart included in the press release can be accessed at http://corporate.safholland.com/de/investor/f...essemittei 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 --------------------------------------------------------------------- 15.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group 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 --------------------------------------------------------------------- 268351 15.05.2014