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NORMA Group SE — Earnings Release 2013
Nov 6, 2013
311_rns_2013-11-06_5417a95e-1e60-4e41-ba3a-acaab0acb6ab.html
Earnings Release
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Corporate | 6 November 2013 07:17
NORMA Group SE continues solid growth
NORMA Group SE / Key word(s): Quarter Results/Interim Report
06.11.2013 / 07:17
NORMA Group SE continues solid growth
– Group sales increased by 6.9% to EUR 159.9 million in the third quarter of 2013
– Group sales improved by 3.3% to EUR 482.7 million in the first nine months of 2013
– Adjusted EBITA margin of 18.0% in the third quarter and 17.6% over the first nine months at a consistently high level
– NORMA Group confirms guidance for 2013
Maintal, Germany, 6 November 2013 – NORMA Group SE (‘NORMA Group’), a global market and technology leader for engineered joining technology, continued on its steady course over the first nine months of financial year 2013. Group sales increased by 3.3% to EUR 482.7 million (previous year: EUR 467.3 million) between January and September 2013 despite negative currency effects of EUR 6.3 million. The acquisitions made in 2012 and 2013 contributed EUR 21.2 million. Sales grew organically by 0.1% over the nine-month period. NORMA Group increased adjusted earnings before interest, taxes and amortization (adjusted EBITA) by 1.8% year on year to EUR 85.0 million between January and September 2013 (previous year: EUR 83.5 million). This resulted in a consistently high EBITA margin of 17.6% (previous year 17.9%).
Group sales in the third quarter of 2013 increased by 6.9% quarter on quarter to EUR 159.9 million (Q3 2012: EUR 149.6 million); 6.3% of this increase was organic. The adjusted EBITA grew by 12.0% to EUR 28.8 million in the third quarter (Q3 2012: EUR 25.7 million). The operating EBITA margin increased substantially year on year to 18.0% (Q3 2012: 17.2%).
‘We were able to continue growing from a solid foundation. Positive acquisition sales in the EMEA and Asia-Pacific regions were complemented by substantial organic growth in the European market,’ says Werner Deggim, CEO of NORMA Group. ‘In Europe, we expect particularly the introduction of the Euro 6 emissions standard to result in significantly improved and sustainable sales.’ By 30 September 2013, the order backlog had grown year on year to EUR 230.3 million (30 September 2012: EUR 221.4 million).
Development in the regions
In the EMEA region, the economic development had positive effects on the development of sales over the first nine months of 2013. Sales in the region grew by 4.9% to EUR 296.2 million (previous year: EUR 282.5 million). Sales in the EMEA region grew organically by 1.4% over the nine month period and 6.7% in the third quarter. Additional contributions of EUR 11.2 million to the increase in sales over the first nine months of 2013 came from the acquisitions made in 2012 and 2013. In the EMEA region, NORMA Group invested in manufacturing facilities particularly in the German, British and Serbian sites.
In the Americas region, NORMA Group generated EUR 146.3 million in sales over the first nine months of 2013 (previous year: EUR 152.4 million). The 4.0% decline results from the subdued economic development in the reporting period and negative currency effects in the amount of 2.5%. Investments were made mainly in the production facilities in the US plants of Auburn Hills and St. Clair. NORMA Group continues to expand its production in Brazil and strengthen its presence in South America by building a manufacturing plant in Brazil and acquiring manufacturing assets for quick connectors, including tooling and injection molding machines.
The Asia-Pacific region performed well. Sales in the region grew by 24.1% to EUR 40.2 million over the nine months of the year (previous year: EUR 32.4 million), helped by the acquisition of Chien Jin Plastic in Malaysia and Davydick & Co. and Guyco in Australia. The companies manufacture and sell joining solutions for use in fresh water supply, irrigation and sanitary systems as well as in agricultural and industrial applications. Investments focused on building a second facility in China and producing urea fluid lines at the Chinese plant of Qingdao.
Solid equity ratio
NORMA Group’s equity as at 30 September 2013 amounted to EUR 308.9 million, up 7.1% compared to the end of 2012 (31 December 2012: EUR 288.3 million). Accordingly, the equity ratio was 37.4% after 41.7% on 31 December 2012. The decline resulted mainly from the issuance of a EUR 125 million borrowers note and the corresponding increase in total assets. Net debt as at 30 September 2013 had improved compared to the year-end 2012 thanks to the positive cash flow and in spite of the dividend payment and acquisitions. Ex hedging instruments, net debt amounted to EUR 162.5 million at the end of the third quarter of 2013 (31 December 2012: EUR 174.2 million).
Further increase of workforce
Employee numbers have again increased over the first nine months of 2013 as a result of NORMA Group’s international expansion. NORMA Group had 4,822 employees as at 30 September 2013 (including temporary employees), 320 more than a year before. In Germany, NORMA Group had 918 employees at the end of the third quarter.
Guidance for 2013 confirmed
NORMA Group expects consolidated sales to grow moderately year on year in 2013. Furthermore, the acquisitions made in 2012 and 2013 contribute additional sales of about EUR 26 million. NORMA Group expects its EBITA margin for financial year 2013 to be in line with the margins of over 17% posted in the past three years (2010: 17.4%; 2011: 17.7%; 2012: 17.4%).
NORMA Group SE – in figures
| Key figures at a glance (in EUR millions) | Q1-Q3 2013 | Q1-Q3 2012 | Financial year 2012 |
| Income statement | 01/01 – 30/09/2013 | 01/01 – 30/09/2012 | 01/01 – 31/12/2012 |
| Sales | 482.7 | 467.3 | 604.6 |
| Adjusted EBITA | 85.0 | 83.5 | 105.4 |
| Adjusted EBITA margin | 17.6% | 17.9% | 17.4% |
| Adjusted earnings per share* | 1.48 | 1.59 | 1.94 |
| Balance sheet | 30/09/2013 | 30/06/2013 | 31/12/2012 |
| Total assets | 826.2 | 701.8 | 692.1 |
| Equity | 308.9 | 298.1 | 288.3 |
| Equity ratio | 37.4% | 42.5% | 41.7% |
| Net debt** | 162.5 | 171.9 | 174.2 |
| Key figures at a glance (in EUR millions) | Q3 2013 | Q3 2012 | Q2 2013 |
| Income statement | 01/07 – 30/09/2013 | 01/07 – 30/09/2012 | 01/04 – 30/06/2013 |
| Sales | 159.9 | 149.6 | 163.5 |
| Adjusted EBITA | 28.8 | 25.7 | 27.9 |
| Adjusted EBITA margin | 18.0 % | 17.2% | 17.1% |
*Pro forma adjusted earnings per share on the basis of the number of shares as at 30 September 2013
**Net debt excluding hedging instruments
Adjustment: In 2012 adjusted by non-recurring / non-period-related costs (mainly due to the IPO), restructuring costs as well as other group and normalized items and depreciation from PPA adjustments. In 2013 adjusted by depreciation from PPA adjustments.
The full report for the third quarter of 2013 is available for downloading from www.normagroup.com/publications .
Additional information is available from the Investor Relations section at www.normagroup.com .
Upcoming events
The publication of the preliminary figures for financial year 2013 is scheduled for 19 February 2014.
Contact
Daphne Recker
Media Relations
E-mail: [email protected]
Tel: +49 (0)6181 – 610 2743
Andreas Trösch
Investor Relations
E-Mail: [email protected]
Tel: +49 (0)6181 – 610 2741
About NORMA Group
NORMA Group is a global market and technology leader for engineered joining technology. The company manufactures a broad range of innovative engineered joining technology solutions in three product categories (clamp, connect and fluid) offering over 30,000 high quality products and solutions to over 10,000 customers in 100 countries. NORMA Group joining products can be found in vehicles, ships, trains, aircraft, domestic appliances, engines and plumbing systems as well as in applications for the pharmaceutical and biotechnology industry. In 2012, NORMA Group generated sales of around EUR 605 million. With around 4,800 employees, NORMA Group operates a global network of 19 production facilities as well as numerous sales and distribution sites across Europe, the Americas and Asia-Pacific. The company has its headquarters in Maintal near Frankfurt am Main, Germany. Since April 2011, NORMA Group SE has been listed on the German stock exchange and included in the MDAX stock index since March 2013.
Disclaimer
This press release contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and events and contain future-oriented expressions such as ‘believe’, ‘estimate’, ‘assume’, ‘expect’, ‘forecast’, ‘intend’, ‘could’ or ‘should’ or expressions of a similar kind. Such future-oriented statements are subject to risks and uncertainties since they relate to future events and are based on the company’s current assumptions, which may not in the future take place or be fulfilled as expected. The company points out that such future-oriented statements provide no guarantee for the future and that the actual events including the financial position and profitability of NORMA Group SE and developments in the economic and regulatory fundamentals may vary substantially (particularly on the down side) from those explicitly or implicitly assumed in these statements. Even if the actual assets for NORMA Group SE, including its financial position and profitability and the economic and regulatory fundamentals, are in accordance with such future-oriented statements in this press release, no guarantee can be given that this will continue to be the case in the future.
End of Corporate News
06.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.
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| Language: | English |
| Company: | NORMA Group SE |
| Edisonstr. 4 | |
| 63477 Maintal | |
| Germany | |
| Phone: | +49 (0)6181-6102-741 |
| Fax: | +49 (0)6181-6102-7641 |
| E-mail: | [email protected] |
| Internet: | www.normagroup.com |
| ISIN: | DE000A1H8BV3 |
| WKN: | A1H8BV |
| Indices: | MDAX |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP News-Service |
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| 238119 06.11.2013 |