NORMA Group SE - Earnings Release 2017

News Details

Corporate | 8 November 2017 07:05

NORMA Group continues on its growth course in the first nine months of 2017

DGAP-News: NORMA Group SE / Key word(s): 9-month figures

08.11.2017 / 07:05

The issuer is solely responsible for the content of this announcement.

NORMA Group continues on its growth course in the first nine months of 2017

– Sales rise by 12.4 percent to EUR 763.4 million from January to September 2017

– Adjusted EBITA increases by 9.6 percent to EUR 134.4 million

– Adjusted EBITA margin at a sustained high level of 17.6 percent

– Forecast for fiscal year 2017 confirmed

Maintal, Germany, November 8, 2017 – NORMA Group, a global market leader in engineered joining technology, increased its sales by 12.4 percent to EUR 763.4 million from January to September 2017 compared to the first nine months of the previous year (Q1-Q3 2016: EUR 679.4 million). The company grew organically by 6.0 percent. Growth from the acquisitions of Autoline , Lifial and Fengfan amounted to 6.6 percent, while negative currency effects had a negative impact of 0.2 percent. In the first nine months of 2017, adjusted earnings before interest, taxes, depreciation and amortization of intangible assets (adjusted EBITA) rose by 9.6 percent to EUR 134.4 million compared to the same period of the previous year (Q1-Q3 2016: EUR 122.6 million). The adjusted EBITA margin was at a sustained high level of 17.6 percent (Q1-Q3 2016: 18.0 percent).

“We achieved solid growth in the first nine months of 2017,” said Werner Deggim, CEO of NORMA Group. “Sales in the Asia-Pacific region in particular grew strongly. We are also pleased with the results in the EMEA and Americas regions. We therefore confirm our sales forecast at Group level of around four to seven percent organic growth and additionally around 55 million euros from acquisitions for the full year 2017.”

Group sales for the third quarter of 2017 increased by 12.8 percent to EUR 244.4 million (Q3 2016: EUR 216.6 million) compared to the same period of the previous year. Adjusted EBITA rose by 10.4 percent to EUR 42.7 million (Q3 2016: EUR 38.7 million). At 17.5 percent, the adjusted EBITA margin was at a consistently high level (Q3 2016: 17.9 percent).

Growth in all three regions

In the EMEA (Europe, Middle East and Africa) region, sales increased by 11.1 percent from January to September 2017 to EUR 369.1 million compared to the first nine months of 2016 (Q1-Q3 2016: EUR 332.2 million). The positive development of sales in the region is mainly attributable to the good business in the automotive sector, which was boosted by the generally positive development of the industry with rising production and sales figures. In addition, sales revenues from the acquisitions of Autoline and Lifial also contributed to growth.

Sales in the Americas region rose by 6.5 percent in the first nine months of 2017 to EUR 309.7 million (Q1-Q3 2016: EUR 290.8 million). This was due in particular to the strong recovery in the commercial vehicle and agricultural machinery market in the US, as well as the revenue from the acquisition of the Mexican Autoline business.

In the Asia-Pacific region, compared to the first nine months of 2016, sales from January to September 2017 increased by 50.2 percent to EUR 84.7 million (Q1-Q3 2016: EUR 56.4 million). Besides the very good business development in Engineered Joining Technology (EJT), including revenue from the Chinese Autoline business, the additional revenue from Fengfan, the company acquired in the second quarter of 2017, also contributed to this development.

Slight rise in equity and the equity ratio

As of September 30, 2017, the Group’s equity increased by 0.4 percent to EUR 485.5 million compared to the end of 2016 (December 31, 2016: EUR 483.6 million). The equity ratio as of September 30, 2017, was 36.9 percent (December 31, 2016: 36.2 percent). Net debt, including hedging instruments, totaled EUR 398.3 million on the reporting date September 30, 2017, an increase of 1.0 percent compared to the end of 2016 (December 31, 2016: EUR 394.2 million).

Due to international expansion, the number of employees rose by 916 compared to the end of 2016 to 7,580 worldwide, including temporary workers, as of September 30, 2017 (December 31, 2016: 6,664 employees).

Forecast for 2017 confirmed

NORMA Group confirms its forecast for fiscal year 2017 at Group level. The company expects Group sales to grow organically by around 4 to 7 percent in 2017 compared to 2016. In addition, revenues from the acquisitions of Autoline, Lifial and Fengfan of around EUR 55 million are expected. The company aims to achieve a sustained adjusted EBITA margin at the same level of previous years of more than 17.0 percent for fiscal year 2017 (2016: 17.6 percent, 2015: 17.6 percent, 2014: 17.5 percent).

NORMA Group in figures


Key figures at a glance (in EUR millions)	Quarters 1-3, 2017	Quarters 1.-3, 2016	Fiscal year 2016
Income statement	01/01 – 09/30/2017	01/01 – 09/30/2016	01/01 – 12/31/2016
Sales	763.4	679.4	894.9
Adjusted EBITA*	134.4	122.6	157.5
Adjusted EBITA margin*	17.6%	18.0%	17.6%

Balance sheet	09/30/2017	09/30/2016	12/31/2016
Total assets	1,314.9	1,282.1	1,337.7
Equity	485.5	451.4	483.6
Equity ratio	36.9%	35.2%	36.2%
Net debt**	398.3	335.1	394.2


Key figures at a glance (in EUR millions)	Q3 2017	Q3 2016	Q2 2017
Income statement	07/01 – 09/30/2017	07/01 – 09/30/2016	04/01 – 06/30/2017
Sales	244.4	216.6	264.1
Adjusted EBITA	42.7	38.7	46.6
Adjusted EBITA margin	17.5%	17.9%	17.7%

**Adjustments: in 2017 by integration costs (EUR 2.0 million), step-up effects from purchase price allocations (PPA) (EUR 1.1 million), transaction tax refunds (EUR -0.5 million) and depreciation of purchase price allocations (EUR 3.0 million); in 2016 by acquisition-related costs (EUR 1.5 million) and depreciation of purchase price allocations (EUR 1.6 million)

**Net debt including hedging instruments: hedging instruments in the amount of EUR 1.7 million in Q3/2017, EUR 4.3 million in Q3/2016 and EUR 2.2 million in fiscal year 2016*

The interim statement on the third quarter of 2017 can be obtained at www.normagroup.com/financial reports . For further information, please refer to the Investor Relations section at www.normagroup.com/IR .

Other dates

Publication of the preliminary figures for fiscal year 2017 is scheduled for February 14, 2018.

Contact

NORMA Group SE

Alexandra Lipkowski

Group Communications

Tel.: +49 (0)6181 – 6102 747

E-Mail: [email protected]

Andreas Trösch

Investor Relations

Tel: +49 (0)6181 – 6102 741

E-Mail: [email protected]

About NORMA Group

NORMA Group is a global market leader in engineered joining technology. The company manufactures a wide range of innovative connecting solutions and water management technology offering more than 35,000 products to customers in 100 countries with around 7,600 employees. NORMA Group helps its customers and business partners react to global challenges such as climate change and increasing scarcity of resources. NORMA Group joining products can be found in vehicles and trains, ships and aircraft, buildings and water management as well as in applications for the pharmaceutical and biotechnology industry. The company generated sales of around EUR 895 million in 2016. NORMA Group operates a global network of 29 production facilities as well as numerous sales and distribution sites across Europe, the Americas, and Asia-Pacific. NORMA Group has its headquarters in Maintal, Germany. NORMA Group SE is listed on the German stock exchange (Prime Standard) and included in the MDAX index.

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.

08.11.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

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Language:	English
Company:	NORMA Group SE
	Edisonstr. 4
	63477 Maintal
	Germany
Phone:	+49 6181 6102 741
Fax:	+49 6181 6102 7641
E-mail:	[email protected]
Internet:	www.normagroup.com
ISIN:	DE000A1H8BV3
WKN:	A1H8BV
Indices:	MDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange