MAINTAL (dpa-AFX) - The fastening technology specialist Norma Group felt the effects of weeks of strikes at US vehicle manufacturers in the final quarter of 2023. According to preliminary figures, sales shrank by 1.6 percent to 1.22 billion euros for the year as a whole, as the SDax-listed company announced in Maintal on Tuesday. However, the strong euro over the year also contributed to the decline, with revenue increasing by 0.7 percent on its own. The share price rose by six percent in early trading.

While the Norma Group performed better in Europe and the Asia-Pacific region last year, the company lost part of its business in the USA. There, extremely bad weather with flooding in the spring and strikes at the three major car manufacturers Ford, Stellantis and Generals Motors in the fall led to a decline in sales.

Adjusted for special effects, earnings before interest and taxes (EBIT) amounted to 97.5 million euros, 1.5 percent below the previous year's figure, while the corresponding margin remained stable at 8.0 percent. However, this was more operating profit than analysts had previously expected. For analyst Peter Rothenaicher from Baader Bank, however, the figures met expectations. However, he pointed to the strong operating net cash inflow. The outlook for 2024, on the other hand, is likely to be conservative, partly because the company does not want to disappoint again - unlike in previous years.

"I am confident that we will achieve further profitable growth in our three strategic business areas of water management, industrial applications and mobility and new energies," said CEO Guido Grandi. With its "improvement program", the Group has laid an important foundation here and achieved initial successes. Norma Group was able to significantly increase its operating margin in the final quarter.

Norma had launched an efficiency and growth program under the previous interim CEO Miguel Ángel López Borrego in May 2023. With this program, the Management Board aims to strengthen growth in the areas of water management and industrial applications by gaining stable business. In the Mobility and New Energies segments, it intends to take an even more focused and selective approach in this regard. Decisions on long-term investments are therefore to be made increasingly by the individual strategic business units in future.

Potential takeover targets will also be constantly analyzed. Among other things, the management wants to expand the water business in Europe. In addition, business processes are to be further improved, for example through standardized IT systems. The complexity of the supply and logistics chain has been reduced by expanding direct deliveries to customers and simultaneously reducing inventories.

Norma manufactures connecting parts for hoses and pipes, among other things, and its main customers are the automotive and agricultural industries. The company will present the detailed figures with the net result and the outlook for 2024 on March 26./mne/niw/stk