DGAP-News

SAF-HOLLAND S.A. increases organic sales in the third quarter of 2016

DGAP-News: SAF-HOLLAND S.A. / Key word(s): Quarter Results
SAF-HOLLAND S.A. increases organic sales in the third quarter of 2016

10.11.2016 / 07:30
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

SAF-HOLLAND increases organic sales in the third quarter of 2016

- Third quarter adjusted EBIT margin before special items at 8.8%

- Operating free cash flow improves by roughly EUR 30 million in the
first nine months

- Full-year outlook remains unchanged

Luxembourg, November 10, 2016 - SAF-HOLLAND, Europe's largest independent
listed supplier for trailers, trucks and buses, was able to successfully
stand up to the difficult market environment experienced in the North
American truck and trailer markets and several of the emerging markets
during the third quarter of 2016. The group increased organic sales by
0.3%. Overall, in the third quarter, the Group generated 1.2% lower sales
of EUR 255.8 million (previous year: EUR 258.8 million) including negative
currency effects and the absence of sales from the divested AerWay product
line, which had still been included in the prior year's figures. Sales in
the first nine months declined slightly by 3.4% to EUR 789.4 million
(previous year: EUR 817.5 million), or 1.3% on an organic basis.

High operating profitability continues
Gross margin reached 19.0% in the third quarter of 2016 (previous year:
19.4%) and included one-time special items. These items included damage to
a leased building at the location in Xiamen, China, due to a major typhoon
in September which caused portions of the inventory to be rendered
unusable. A one-time inventory adjustment was also made at the Xiamen
location in the course of implementing SAP at that location. Together these
events resulted in one-time write-downs on inventories and old stock of
nearly EUR 1.0 million, which was recognized under cost of sales. Excluding
these effects, the gross margin in the third quarter was identical to the
prior year's level. Gross margin for the 2016 nine-month period increased
to 20.0% (previous year: 19.4%) thanks to efficient cost reductions from
consolidating the Group's plants in Europe, bundling the procurement
activities and a more favorable product mix.

Third quarter adjusted EBIT margin remains within the target range
Adjusted EBIT reached EUR 21.6 million (previous year: EUR 24.1 million) in
the third quarter of 2016. Adjustments included, among others, acquisition-