DGAP-News

SAF-HOLLAND S.A.: Good growth in sales and earnings for financial year 2014 - Seite 2

SAF-HOLLAND increased sales to EUR 99.3 million (previous year: EUR 70.0
million). It was possible to compensate for regional market weaknesses in
Russia and Brazil with higher volumes in other emerging markets. Sales
growth resulted both from organic growth and from the inclusion of Corpco
Beijing Technology and Development Co., Ltd. (Corpco) in the consolidated
financial statements. The Chinese 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 share of
Group sales outside the core markets of Europe and North America increased
to 10.4 percent (previous year: 8.2 percent).


Positive development of the Business Units
All three of SAF-HOLLAND's Business Units contributed to the growth in
total sales. The Trailer Systems business unit increased sales by 12.1
percent to EUR 544.4 million (previous year: EUR 485.7 million) despite the
effects of the Russia-Ukraine crisis which took hold from the second half
of the year, thus contributing 56.7 percent of Group sales as in the
previous year. The Business Unit was able to benefit from the positive
market development in Europe and North America. The Business Unit's
adjusted EBIT more than doubled compared to the previous year, reaching EUR
20.5 million (previous year: EUR 10.6 million). The adjusted EBIT margin
improved to 3.8 percent (previous year: 2.2 percent). In addition to the
successes of the operational business, growth in earnings reflects the
first positive effects of the package of measures to improve the
profitability of the Business Unit. With the initiatives bundled in this
package, the adjusted EBIT margin of Trailer Systems should improve by the
end of 2015 to around 6 percent.

The Powered Vehicle Systems Business Unit increased its sales in the
reporting year to EUR 169.5 million (previous year: EUR 144.7 million) and
thus contributed 17.7 percent (previous year 16.9 percent) to Group sales.
Adjusted EBIT totaled EUR 11.8 million (previous year: EUR 12.4 million),
which corresponds to an adjusted EBIT margin of 7.0 percent (previous year:
8.6 percent). Growth drivers were the strong market growth for class 8
trucks as well as the share of sales contributed by Corpco Beijing
Technology and Development Co., Ltd. (Corpco). The Business Unit's expected
weaker earnings figures are mainly influenced by an unfavorable customer
and product mix. Primarily, the reluctance of the public sector in the USA