DGAP-News

SAF-HOLLAND S.A.: Significant increase in sales and earnings in the first nine months of 2014 - Seite 2

year: EUR 52.9 million). In addition to organic growth, the newly-added
Chinese Corpco Beijing Technology and Development Co., Ltd. also
contributed to the disproportionaly high increase. The company, which is
specialized in suspension systems for buses, has been included in the scope
of consolidation of SAF-HOLLAND since January 2014. Overall, the emerging
markets increased their contribution to Group sales in the first half of
the year to 10.2 percent (previous year: 8.1 percent).


Trailer Systems: profitability increased
The Trailer Systems Business Unit increased its sales in the first three
quarters by EUR 41.0 million to EUR 414.1 million (previous year EUR 373.1
million). As SAF-HOLLAND's largest business segment, it thus generated
57.2% of Group sales (previous year: 57.0 percent). Detlef Borghardt, CEO
of SAF-HOLLAND: "In North America we were able to take advantage of strong
market growth and gradually further utilize local production capacities
which were doubled in 2013." The European activities of the Business Unit
also developed positively, but felt the effects of the Ukraine conflict:
Large trailer manufacturers for which SAF-HOLLAND is a major supplier
exported fewer vehicles to Russia. On the earnings side, the business
segment made significant progress. In adjusted EBIT, growth of about 80
percent to EUR 17.2 million (previous year: EUR 9.7 million) was achieved
and the adjusted EBIT margin increased to 4.2 percent (previous year: 2.6
percent) as a result. The favorable earnings development was positively
influenced by the volume effects and the results achieved through the
bundle of measures for improving profitability. By the end of 2015, an
ongoing improvement in the adjusted EBIT margin for the Business Unit to
about 6 percent has been targeted.




Powered Vehicle Systems: strong growth
The Business Unit Powered Vehicle Systems increased sales in the first nine
months by 11.9 percent to EUR 122.9 million (previous year: EUR 109.8
million). Sales volume was expanded further in both North America and
Europe. Not least as a result of exports and innovative product solutions,
the capacities at the European operations of the business segment located
in Singen were consistently well utilized. Adjusted EBIT for the Business
Unit in the reporting period amounted to EUR 8.1 million (previous year:
EUR 9.4 million), the adjusted EBIT margin was 6.6 % (previous year: 8.6%).
The earnings figures, which were weaker compared to the prior-year period
as expected, reflect the unfavorable customer and product mix and seasonal