DGAP-News: SAF-HOLLAND S.A. / Key word(s): Final Results
SAF-HOLLAND S.A.: SAF-HOLLAND with strong growth in sales and earnings
17.03.2011 / 06:56
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- Group sales 2010 increases by 50.4 percent to EUR 631.0 million
- Adjusted EBIT rises to EUR 37.1 million
- Stable upward trend expected also for 2011
Luxembourg, March 17, 2011 - SAF-HOLLAND S.A., a leading supplier for the
global truck and trailer industry, is once again on a growth path. In
financial year 2010, sales and earnings increased substantially. Sales rose
by 50.4 percent as compared to the previous year to EUR 631.0 million
(previous year: EUR 419.6 million), adjusted for exchange rate effects to
EUR 616.7 million. Adjusted EBIT increased at an even greater rate,
reaching EUR 37.1 million (previous year: EUR 1.5 million). The adjusted
EBIT margin thus improved to 5.9 percent (previous year: 0.4 percent). All
three Business Units contributed to this positive development.
Key to the good development is the recovery of global demand in the
commercial vehicles market as well as the restructuring of SAF-HOLLAND.
Rudi Ludwig, CEO of SAF-HOLLAND: 'The fact that we have not deviated from
our strategy in recent years, even during times of economic crisis, has
paid off. We were able to participate successfully in the market upswing in
2010 thanks to our lean and efficient alignment. There are four pillars to
our success: the transfer of technology between our core markets Europe and
the USA, the expansion of production and distribution in growth markets
such as Brazil and China, efficient products which confirm our
technological leadership as well as the continuous expansion of our global
service network for the Aftermarket Business Unit.'
Clear growth in demand
According to market studies the commercial vehicles industry is clearly
benefiting from the global economic recovery. The number of new truck
registrations (over 16 tons) rose by more than 20 percent in Germany in
2010. Europe-wide the number of new truck registrations rose by 8.4
percent. In the USA, truck production was up by approximately 30 percent.
The production of trailers also increased significantly in 2010. In Western
Europe about 11 percent more trailers were produced than in the previous
year. The SAF-HOLLAND group had sales of EUR 311.3 million in Europe
(previous year: EUR 196.7 million) while sales in North America were EUR
279.2 million (previous year: EUR 198.9 million). Sales in the remaining
regions amounted to EUR 40.5 million (previous year: EUR 24.0 million). The
gross margin also improved further in 2010, amounting to 18.5 percent
(previous year: 16.3 percent). Adjusted EBIT rose significantly to EUR 37.1
million (previous year: EUR 1.5 million). The adjusted result for the
period showed a profit once again at EUR 2.9 million (previous year: EUR
-15.6 million) and adjusted earnings per share were EUR 0.14 (previous
year: EUR -0.75). Cash flow from operating activities before income tax
payments amounted to EUR 46.0 million (previous year: EUR 48.3 million). As
a result of the successful net working capital management, the days of
inventory outstanding was down further to 43 days (previous year: 57 days).
The equity ratio on the reporting date was nearly unchanged at 5.1 percent
(previous year: 5.2 percent). Net debt (interest-bearing loans and
borrowings minus cash and cash equivalents) amounted to EUR 302.1 million
(previous year: EUR 289.3 million).
Trailer Systems with the strongest growth of all Business Units
The Trailer Systems Business Unit recorded the strongest growth in 2010.
Demand rose substantially in all regions. Sales in the segment amounted to
EUR 322.8 million (previous year: EUR 175.1 million), adjusted for exchange
rate effects the figure was EUR 318.2 million. Due to a significant
improvement in capacity utilization, the gross margin increased to 6.5
percent (previous year: -1.7 percent). Adjusted EBIT for the segment
totaled EUR -9.0 million (previous year: EUR -27.0 million). There was
steady sales growth in the Business Unit over the course of the year and
this growth has continued in the beginning of 2011. This applies to both
Europe and North America. Axle production in the USA tripled as compared to
the previous year.
Powered Vehicle Systems significantly increases its profit margin
The Powered Vehicle Systems Business Unit benefited from steady growth in
all regions. Compared to the previous year, sales in the segment increased
to EUR 127.5 million (previous year: EUR 98.3 million), adjusted for
exchange rate effects the figure was EUR 122.4 million. The gross margin
rose to 23.6 percent, after a rate of 21.2 percent in the previous year.
Adjusted EBIT climbed to EUR 22.4 million (previous year: EUR 14.7
million). SAF-HOLLAND is the market leader for fifth wheels in North
America and is growing its business in Europe. The Company also anticipates
growth in this segment in 2011.
Aftermarket expanding profitably
The Aftermarket Business Unit further expanded its service network in
financial year 2010. In 2010, sales grew to EUR 180.7 million (previous
year: EUR 146.2 million), at constant exchange rates to EUR 176.1 million.
The gross margin increased slightly to 37.9 percent (previous year: 36.5
percent). As a result of the increase in sales, adjusted EBIT rose to EUR
25.9 million (previous year: EUR 17.7 million). The spare parts business is
generally less influenced by economic cycles and is a stabilizing factor
for the Group with a good degree of profitability.
Number of employees increases once again
As a consequence of higher demand, the Group hired new employees in all
regions. As of December 31, 2010, SAF-HOLLAND employed 2,774 people
(previous year: 2,331). The average for the year 2010 was 2,619 employees
as compared to 2,320 in the previous year.
Outlook
SAF-HOLLAND expects the market growth seen in recent months to continue in
2011. Against this backdrop and subject to the impact of the recent events
in Japan, the Group anticipates a growth in sales of up to 20 percent in
the current financial year. Earnings are also expected to improve but it
must be kept in mind that during a return to normal market volumes, the
customer and product mix tends to shift to lower-margin standard products.
In the medium-term, SAF-HOLLAND's goal remains to generate sales of EUR 1
billion while achieving an adjusted EBIT margin of 10 percent.
Note:
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 impairment on goodwill and intangible
assets from the impairment tests, reversal of impairment as well as
restructuring and integration costs.
The table of key figures is included in the press release and can be viewed
at
http://corporate.safholland.com/en/investor/investor-news/press-releases.h
tml.
.
Company Profile:
With sales of approximately EUR 630 million in 2010 and around 2,800
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, inter alia, trailer axle systems and suspension systems, fifth
wheels, couplers, kingpins, and landing gears. SAF-HOLLAND sells its
products on six continents to original equipment manufacturers ('OEMs') in
the first-fit market, and in the aftermarket to the OEMs' original
equipment services ('OESs') and through a global distribution and service
network. This network resells to end users and service centres. 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 wide
service network. SAF-HOLLAND S.A. has been listed in the Prime Standard of
the Frankfurt Stock Exchange since June 2007 and has been in the SDAX since
December 2010.
Contact:
SAF-HOLLAND Group GmbH
Barbara Zanzinger
HauptstraÃe 26
63856 Bessenbach
Phone +49 6095 301-617
barbara.zanzinger@safholland.de
End of Corporate News
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Language: English
Company: SAF-HOLLAND S.A.
68-70, boulevard de la Pétrusse
L-2320 Luxembourg
GroÃherzogtum 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
End of News DGAP News-Service
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115841 17.03.2011
DGAP-News: SAF-HOLLAND S.A.: SAF-HOLLAND with strong growth in sales and earnings
| Source: EQS Group AG