DGAP-News

SAF-HOLLAND S.A.: Good growth in sales and earnings for financial year 2014 - Seite 3

regarding investments in equipment of its transport fleets had an impact on
sales and adjusted EBIT of the Business Unit.

Despite a slight decline in business volume in the fourth quarter of 2014
related to the impact of the Russia-Ukraine crisis, full-year sales in the
Aftermarket Business Unit increased by 8.5 percent to EUR 245.8 million
(previous year: EUR 226.6 million), thus generating a 25.6 percent share of
Group sales (previous year: 26.4 percent). Adjusted EBIT for the Business
Unit reached EUR 38.4 million (previous year: EUR 36.3 million) despite the
further expansion of sales structures. In addition, the Business Unit's
earnings in the fourth quarter 2014 were affected by negative currency
effects caused by the Russia-Ukraine crisis. In relation to sales, this
results in an adjusted EBIT margin of 15.6 percent for financial year 2014
(previous year: 16.0 percent), thus achieving the defined margin corridor
of 15 to 16 percent. In terms of both sales and earnings, the Aftermarket
business benefited from contributions from our our brand, SAUER GERMANY
QUALITY PARTS. These are targeted toward regions in which vehicles
generally have a high service age.


Investments in intensified market activities, production and IT systems
In the reporting year, SAF-HOLLAND invested a total of EUR 30.1 million
Group-wide (previous year: EUR 23.2 million). In relation to sales volume,
this corresponds to an investment ratio of 3.1 percent (previous year: 2.7
percent). The expanded investment volume is influenced by the acquisition
of Corpco. In addition, there were investments in the expansion of our
business activities in Dubai and Malaysia, the plant consolidation in
Europe and for information technology systems.




Cost structures reflect enhanced efficiency
Primarily as a result of increased business volume, the Group's gross
profit rose to EUR 174.6 million (previous year: EUR 155.6 million) with a
constant gross margin of 18.2 percent (previous year: 18.2 percent). In
relation to the key cost categories, our expenses rose at a lower rate than
sales. Selling expenses of EUR 57.7 million (previous year: EUR 53.3
million) were 6.0 percent of Group sales (previous year: 6.2 percent). In
the reporting year, a total of EUR 19.6 million was spent on research and
development activities (previous year: EUR 18.0 million). Despite intensive
activities in this area, the share of R&D expenditures in total sales, not
including capitalized development costs, were 2.1 percent (previous year: