DGAP-News: SAF-HOLLAND S.A.: Good sales development in the

DGAP-News: SAF-HOLLAND S.A. / Key word(s): Quarter Results/Temporary Suspension SAF-HOLLAND S.A.: Good sales development in the second quarter (news with additional features) 08.08.2013 / 07:00 --------------------------------------------------------------------- SAF-HOLLAND: Good sales development in the second quarter * Half-year figures above expectations * Slight increase in adjusted EBIT * Significant improvement of result for the period * Sales and earnings goals for 2013 confirmed * Trailer Systems: series of measures to increase earnings by 2015 Luxembourg, August 8, 2013 - At SAF-HOLLAND, the globally active supplier to the truck and trailer industry, the pace of business development increasingly picked up over the course of the first half year. Group sales in the second quarter increased by 7.3 percent as compared to the first quarter. For the first half of 2013, a sales volume of EUR 435.6 million was reported (previous year: EUR 440.3). Development of the adjusted earnings figures was consistently positive in the Group. Detlef Borghardt, CEO of SAF-HOLLAND: 'The good progress in terms of sales and earnings confirm our planning for the full year in which we anticipate a stronger second half as compared to financial year 2012.' Benefits from optimized company financing In the Group, SAF-HOLLAND achieved gross profit of EUR 80.3 million (previous year: EUR 80.9 million), which represents a stable gross margin of 18.4 percent. Adjusted EBIT amounted to EUR 29.8 million (previous year: EUR 29.7 million) and the adjusted EBIT margin reached 6.8 percent (previous year: 6.7 percent). As a direct effect of the optimization of company financing in 2012, the adjusted result for the period grew by 6.4 percent to EUR 16.6 million in the first half of the year (previous year: EUR 15.6 million). Adjusted earnings per share fell slightly to EUR 0.37 (previous year: EUR 0.38) - a consequence of the increase in the number of shares in the past year to 45.4 million shares (previous year: 41.2 million shares). Growing contribution from emerging countries SAF-HOLLAND generated the largest portion of sales in Europe with 52.1 percent (previous year: 51.6 percent). 40.2 percent of sales were generated in North America (previous year: 42.1 percent) and the regions outside of the two core markets - primarily the BRIC countries and other emerging markets - increased their share to 7.7 percent (previous year: 6.3 percent). The Trailer Systems Business Unit once again positioned itself as the strongest source of sales with a share of Group sales totaling 57.2 percent (previous year: 55.1 percent). The Powered Vehicle Systems Business Unit contributed 17.3 percent (previous year: 18.6 percent) and the Aftermarket Business Unit added 25.5 percent (previous year: 26.3 percent). All business segments reported sales increases as compared to the first three months of the year. Trailer Systems: Upward trend in the second quarter In the Trailer Systems segment, SAF-HOLLAND was able to increase its sales in the first half of the year to EUR 249.2 million (previous year: EUR 242.8 million). The upward trend was apparent primarily during the second quarter, in which the sales volume for the segment grew by 4.8 percent as compared to the same period in the previous year. Adjusted EBIT of EUR 6.8 million (previous year: EUR 7.9 million) and the adjusted EBIT margin of 2.7 percent (previous year: 3.3 percent) were impacted in particular by higher guarantee costs which were incurred in connection with sales from the years prior to the crisis in 2008 / 2009 with above-average production figures, in addition to higher sales and R&D expenses. An international package of measures was developed for the sustainable optimization of profitability in the Trailer Systems segment. These measures will help to reach the adjusted EBIT margin for the entire Group of 10 percent in 2015. Powered Vehicle Systems: adjusted EBIT margin of nearly 10 percent The Powered Vehicle Systems Business Unit recorded sales of EUR 75.5 million (previous year: EUR 81.7 million) in the first six months. As in the previous year, adjusted EBIT was EUR 7.2 million and the adjusted EBIT margin reached 9.6 percent (previous year: 8.7 percent). The Business Unit Powered Vehicles System could benefit from favorable customer and product mix. SAF-HOLLAND is continuing the measures introduced for the optimization of the European organizational structures in this business unit. Aftermarket: Sales increase from April onwards In the Aftermarket Business Unit sales in the second quarter increased significantly as compared to the first three months of this year by 14.9 percent. There are a number of reasons why sales in the first half of the year of EUR 110.9 million (previous year: EUR 115.8 million) were below the level of the previous year, as expected. At the beginning of the previous year, the Business Unit benefited from orders that were carried forward from 2011 to 2012. In the first half of this year, on the other hand, additional factors arose such as the supply-related delays in the market launch of a new product in North America and bottlenecks in personnel in China, for example. Adjusted EBIT in the Business Unit improved to EUR 18.8 million (previous year: EUR 16.7 million) and an adjusted EBIT margin of 16.9 percent (previous year: 14.4) was achieved. Clear increase in operating cash flow Cash flow from operating activities before income tax increased to EUR 36.4 million in the reporting period (previous year: EUR 23.6 million). It should be taken into consideration that in the previous year cash inflow was unusually low because customer payments had been brought forward to December 2011. In the first half year of 2013, on the other hand, positive effects from the intensive utilization of the non-recourse factoring led to an additional cash inflow. Equity ratio of 40 percent targeted As of June 30, 2013, total assets rose to EUR 556.3 million (December 31, 2012: EUR 536.7 million). As a result of the increase in equity to EUR 209.4 million (December 31, 2012: EUR 197.9 million) it was possible to achieve an equity ratio of 37.6 percent (December 31, 2012: 36.9 percent) despite the higher balance sheet total. The company is thus a step closer to the targeted goal of a ratio of around 40 percent. Total liquidity as of June 30, 2013 was EUR 149.7 million (previous year: EUR 64.5 million / December 31, 2012: EUR 140.5 million). Adjusted EBIT to increase to at least EUR 60 million in 2013 SAF-HOLLAND started the second half of the year with well-filled order books. Insofar as the current forecasts are not blurred by negative financial and economic developments, the company continues to anticipate Group sales of between EUR 875 million and EUR 900 million for the financial year 2013. The sales volume that is achievable depends on the pace of the market upswing in Europe and North America. As before, on the earnings side an adjusted EBIT of at least EUR 60 million in 2013 has been targeted. Depending on the sales volume, this results in an increasing or at least stable adjusted EBIT margin. Wilfried Trepels, CFO of SAF-HOLLAND: 'As from today's perspective, the result for the current financial year will not be influenced by significant burdening one-time effects such as effects from refinancing, we expect for 2013 a substantial increase in our result for the period'. Assuming that the global economy gains stability, SAF-HOLLAND stands by its goal of achieving sales of EUR 1 billion and an adjusted EBIT margin of 10 percent in financial year 2015. Good prospects are offered in particular by the two core markets of Europe and North America with their substantial pent-up demand in trucks and trailers. The trailer market in North America, global activities in the Aftermarket business and the commitment in the BRIC countries remain at the core of the growth strategy. SAF-HOLLAND wants to grow organically in all three areas. The development of market activities through smaller, rounding acquisitions is also conceivable. Notes: For financial years beginning on or after January 1, 2013, IAS 19R, the amended version of the accounting standard IAS 19 'Employee Benefits', is valid. SAF-HOLLAND had already taken the amened standard into account in the preparation of its consolidated financial statements for 2012. The previous version, IAS 19, was applied for the interim financial statements of the past financial year. IAS 19R has been used for interim financial reporting since the beginning of 2013. In line with IFRS and for better comparability, the new standard will also be applied retroactively to the respective reporting periods in the previous year. 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 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 Hauptstra�e 26 63856 Bessenbach Phone +49 6095 301-617 claudia.hoellensafholland.de End of Corporate News +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=XMPWFGWPVI Document title: Results Q2/2013 SAF-HOLLAND S.A --------------------------------------------------------------------- 08.08.2013 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 --------------------------------------------------------------------- 224773 08.08.2013