DGAP-News: SAF-HOLLAND S.A. / Key word(s): Preliminary Results SAF-HOLLAND's preliminary figures for Q3 2018 show an increase of 15.0% in organic sales and an adjusted EBIT margin of 8.0% (including extraordinary income of EUR 4.4 million); Company refines its outlook for 2018 - According to preliminary figures for Q3 2018, Group sales increase by 22.9% to EUR 340.6 million (py: EUR 277.1 million) - EBIT includes extraordinary income from the settlement of a US medical plan in the amount of EUR 4.4 million and increases by 45.2% to EUR 22.5 million (py: EUR 15.5 million) - Adjusted EBIT improved to EUR 27.1 million (py: EUR 20.9 million) - Organic growth forecast for 2018 increased to a range of 9% to 10% (previously 5% to 7%)
- Adjusted EBIT margin for full-year 2018 (including extraordinary income of EUR 4.4 million) seen rather tending to the lower end of the target range of 7.0% to 8.0% Strong organic sales growth continues in the third quarter of 2018 Adjusted Group EBIT margin reaches 8.0% and 6.7% before extraordinary income Steel prices and additional operating expenses affect profitability in the Americas segment: strong increase in sales accompanied by sequential earnings improvement
The Americas region's adjusted EBIT continued to improve in the third quarter of 2018 on a purely operational basis versus the prior quarter and rose to EUR 2.1 million (Q2 2018: EUR 0.7 million). In addition, the settlement of a US medical plan resulted in additional extraordinary income of EUR 4.4 million. This will immediately lead to annual cost savings of EUR 0.4 million. Overall, adjusted EBIT in the region amounted to EUR 6.5 million (py: EUR 5.0 million). Steel prices that have been weakening slightly since the middle of the third quarter of 2018, nevertheless remained at a very high level on a quarterly average and continued to weigh on earnings. The additional cost of materials resulting from the steel price increase totaled EUR 3.9 million in the Americas region in the third quarter of 2018 (Q2 2018: EUR 4.3 million). In addition, start-up costs and lingering production inefficiencies within the restructured US production network resulted in additional operating expenses of EUR 2.0 million in the third quarter of 2018 (Q2 2018: EUR 2.3 million; Q1 2018: EUR 3.9 million). SAF-HOLLAND has made a conscious decision to give priority to the timely delivery of its customers. Increased express freight and logistics costs resulted primarily from continued strong demand in North America and the extremely tense situation in the supply chain in the industry as a whole. Adjusted EBIT margin in EMEA region improves versus the prior year
The APAC/China segment posted sales growth of EUR 33.0 million to EUR 56.1 million in the third quarter of 2018 (py: EUR 23.1 million). The acquired York Group, Singapore, whose operating margin is still below the Group's average, contributed EUR 20.1 million to the region's sales. The adjusted EBIT margin in this region amounted to 5.5% (py: 6.1%). Company refines sales and earnings forecast for the 2018 financial year
Based on the result for the third quarter of 2018, the stronger-than-expected sales development in the Americas region, which currently however contributes below-average margins to the Group's results, as well as the high steel prices, SAF-HOLLAND sees the adjusted EBIT margin in full-year 2018 (including EUR 4.4 million in extraordinary income) rather tending towards the lower end of the 7.0% to 8.0% range taking into consideration the usual seasonal effects in the final quarter of the year.
With regard to the medium-term goals under SAF-HOLLAND's Strategy 2020, the Company confirms its target for a return of the adjusted Group EBIT margin to a level of at least 8.0% in the years ahead. The Company is currently optimizing its process chains and integrating of capacity planning and logistics processes in the North America region in order to continue to gradually improve earnings. In view of the current trend in commodity prices, the Company reckons the negative effects of the sharp rise in steel prices to have peaked and in the mid-term expects these effects to tend to decline, also as a result of largely passing on these effects in its own selling prices. At the Group level, management believes that among others, price adjustments and material cost savings related to attaining specific purchasing volumes, will impact profitability positively.
The final results will be announced with the publication of the interim statement for the third quarter of 2018 on November 8, 2018. About SAF-HOLLAND: Conference Call on October 19, 2018, at 10:00 a.m. CEST
On this occasion, SAF-HOLLAND will hold a management conference call for analysts and investors today, October 19, 2018, led by CEO Detlef Borghardt and CFO Dr. Matthias Heiden.
To join the conference call and web presentation, please use the following dial-in numbers: Telephone numbers:
+49 30 232531173 Germany Link to web presentation Event Manager: https://webcast.meetyoo.de/index.html?e=V5Ebul77z9qf
Contact: SAF-HOLLAND GmbH Stephan Haas Hauptstraße 26 63856 Bessenbach Phone +49 6095 301-617 Stephan.Haas@safholland.de
19.10.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | SAF-HOLLAND S.A. |
68-70, boulevard de la Pétrusse | |
L-2320 Luxembourg | |
Luxemburg | |
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: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |
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