DGAP-News: SAF-HOLLAND S.A. / Key word(s): Half Year Results SAF-HOLLAND S.A.: Positive development of the business in first half-year 16.08.2012 / 07:00 --------------------------------------------------------------------- SAF-HOLLAND: Positive development of the business in first half-year - Group sales increase to EUR 440.3 million - Growth in all three Business Units - Adjusted EBIT of EUR 28.9 million - Equity ratio further increased Luxembourg, August 16, 2012 - SAF-HOLLAND S.A. is still on the path to success. In the first half of 2012, the Company increased Group sales by EUR 22.4 million to EUR 440.3 million (previous year: EUR 417.9 million). The supplier to the global truck and trailer industry thereby generated stronger growth than the worldwide commercial vehicles industry and achieved adjusted operating earnings of EUR 28.9 million. North American activities underwent positive developments where sales increased by 13.0 percent. Detlef Borghardt, CEO of SAF-HOLLAND: 'North American fleet operators and trucking companies have started to make long overdue investments in their trucks and trailers - a development that is still to come for Europe.' With its expanded product range and increased local production capacities, SAF-HOLLAND is extremely well-positioned in the North American market. The market generates 42.1 percent of Group sales, Europe accounts for a further 51.6 percent, and 6.3 percent is attributable to other regions including the emerging BRIC countries. Adjusted result for the period grows by 31.1 percent The Group increased gross profit to EUR 80.4 million in the first half of the year (previous year: EUR 76.7 million). The gross margin was at 18.3 percent (previous year: 18.4 percent). The adjusted result for the period was also improved further and increased by nearly one-third to EUR 15.6 million (previous year: EUR 11.9 million). Although the average number of shares outstanding increased to 41.2 million shares as a result of the capital increase at the end of March 2011 (previous year: 31.8 million shares), adjusted earnings per share increased slightly to EUR 0.38 (previous year: EUR 0.37). Adjusted EBIT totaled EUR 28.9 million (previous year: EUR 30.0 million). In relation to sales, this results in an adjusted EBIT margin of 6.6 percent (previous year: 7.2 percent). The expected small decrease in adjusted EBIT was attributable to a missing contribution to earnings from a project, the major portion of which expired as anticipated in the third quarter of 2011. If the effect on earnings from this project is not taken into consideration, the adjusted EBIT margin in the first half of 2012 would be approx. 0.3 percentage points higher than the comparable figure of the previous year. Equity ratio improved again The equity ratio improved to 36.8 percent as of June 30, 2012 (December 31, 2011: 35.8 percent), primarily owing to the successful optimization of financing, among other things. The finance result decreased significantly to -EUR 6.6 million (previous year: -EUR 18.0). Trailer Systems: Strong North American business All of SAF-HOLLAND's Business Units contributed to the Group's growth in sales. The Trailer Systems Business Unit increased its half-year sales to EUR 242.8 million (previous year: EUR 241.8 million) and contributed 55.1 percent to Group sales. The business especially grew in North America where Trailer Systems benefited from a positive market environment as well as growing interest in axle and suspension systems from SAF-HOLLAND. Gross profit increased disproportionately to sales: at EUR 24.7 million, it exceeded the prior-year figure by 8.8 percent (previous year: EUR 22.7 million). The gross margin increased from 9.4 to 10.2 percent. Powered Vehicle Systems: Sales plus of 10.7 percent The Powered Vehicle Systems Business Unit generated sales of EUR 81.7 million (previous year: EUR 73.8 million) corresponding to growth of 10.7 percent. The North American business grew at a disproportionate rate in this Business Unit as well. The expected effect of the anticipated project expiration was noticeable with gross profit at EUR 12.1 million (previous year: EUR 13.9 million). Nevertheless, the Business Unit once again proved its high profitability with a gross margin of 14.8 percent. As a result of the growth in sales, the Business Unit increased its share in SAF-HOLLAND's total sales by nearly one percentage point to 18.6 percent. Aftermarket: Growing share in Group sales Sales of the Aftermarket Business Unit increased by 13.2 percent in the first half of the year to EUR 115.8 million (previous year: EUR 102.3 million). As a result, the Business Unit had a share in Group sales of more than one-fourth for the first time. 'In the course of our growth strategy, we aim to generate 30 percent of total sales in the Aftermarket business on the mid-term. By exceeding the 25 percent marker, we have reached an important milestone', said Wilfried Trepels, Chief Financial Officer. The Business Unit showed its strength as a source of earnings: with a gross margin of 37.7 percent, gross profit increased by EUR 3.4 million to EUR 43.6 million. Further growth targeted for 2012 and 2013 Assuming that politicians succeed in managing the European sovereign debt crisis, SAF-HOLLAND expects continued positive business development. The positive development of the business in the first half of the year should continue in 2012; however, the second half of the year traditionally offers less potential due to plant vacation shutdowns of major customers. For the full-year 2012, the Company expects Group sales of approximately EUR 850 million and a stable development of earnings. As compared to the previous year, this would correspond to growth in sales of more than 2 percent or 5 percent adjusted for the project that expired in 2011. Given the appropriate framework conditions, profitable growth is expected for 2013 as well. The high demand for replacement parts for trucks and trailers remains a significant growth driver: now that the modernization of fleets in North America has started, the following year could also see a significant reduction in the investment bottleneck in Europe giving the business at SAF-HOLLAND additional momentum. Note: EBIT was adjusted for the following items that are not originally attributable to the operating business: depreciation and amortization arising from the purchase price allocation as well as restructuring and integration costs. The key figures chart is contained within the press release and can be accessed at: http://corporate.safholland.com/de/investor/finanznachrichten/pressemittei lungen.html Company Profile: With sales of approximately EUR 831 million in 2011 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. 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 Christina Hüttner HauptstraÃe 26 63856 Bessenbach Phone +49 6095 301-617 ir@safholland.de End of Corporate News --------------------------------------------------------------------- 16.08.2012 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 WKN: A0MU70 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 181820 16.08.2012
DGAP-News: SAF-HOLLAND S.A.: Positive development of the business in first half-year
| Source: EQS Group AG