DGAP-News
SAF-HOLLAND S.A. defies weak US market and achieves 2016 sales and earnings targets - Seite 2
At 8.7%, the adjusted EBIT margin in the 2016 financial year was within the target range
Operating income in the past financial year remained at a high level. Despite a slight decline in sales and one-time transaction costs totaling EUR 4.1 million for the takeover offer for the
Swedish brake system manufacturer Haldex, which was ultimately withdrawn, and the majority takeover of KLL, the operating result was only slightly lower year-on-year at EUR 76.3 million (previous
year: EUR 79.3 million). The stable operating result was supported by a noticeable improvement in the gross margin, which increased by 70 basis points to 19.8% (previous year: 19.1%) from the
savings generated by the plant consolidation in Europe, higher efficiency in the production network and cost reductions from the increased bundling of purchasing activities within the Group
notwithstanding that in China extraordinary write-downs on inventories and warranty expenses totaling EUR 1.6 million had to be booked.
EBIT adjusted for special effects from the purchase price allocation and restructuring and transactions costs, was 3.8% lower in 2016 reaching EUR 90.4 million (previous year: EUR 94.0 million). At 8.7% (previous year: 8.9%), the adjusted EBIT margin was in the upper half of the targeted range of 8 to 9%, as planned.
Lesen Sie auch
Finance result weaker due to higher interest expenses and a change in accounting for currency gains
The finance result in 2016 amounted to EUR -13.5 million (previous year: EUR -4.0 million) and was below the previous year's level. This development was primarily a result of a change in the
recognition of unrealized exchange gains and losses from the valuation of intercompany foreign currency loans. Starting with the 2016 financial year, these gains and losses are accounted for as
part of a net investment in a foreign operation and recognized directly in other comprehensive income (OCI). While net unrealized exchange gains of EUR 6.8 million were still recognized in the
previous year, this item had little effect in 2016. At the same time, the net interest expense increased to EUR -11.7 million (previous year: EUR -8.8 million), due mainly to the issue of
promissory notes. With these promissory notes, SAF-HOLLAND laid the financial groundwork for the acquisitions planned under Strategy 2020 already in the previous year. The sale of the Haldex shares
acquired in the run-up to the takeover offer for Haldex resulted in a gain of EUR 5.7 million for the full year, which was offset by expenses of EUR 5.1 million for currency hedges undertaken for
the planned transaction.