DGAP-News

SAF-HOLLAND S.A. defies weak US market and achieves 2016 sales and earnings targets - Seite 3

Result for the period at EUR 43.5 million

The weaker finance result caused a greater percentage decline in the result for the period of 15.9% to EUR 43.5 million (previous year: EUR 51.7 million) in the 2016 financial year compared to the decline in the operating result. This decline not only reflects transaction-related expenses in the 2016 financial year but also non-cash exchange gains from the valuation of intercompany foreign exchange loans in the prior year. Excluding these effects, the result for the period on a comparable basis would have been just slightly below the previous year.

Renewed sales growth in the fourth quarter of 2016

SAF-HOLLAND recorded sales growth of 3.9% to EUR 252.6 million (previous year: EUR 243.2 million) in the fourth quarter, marking the first time in the 2016 financial year, despite a further drop in customer demand in North America. Growth originated not only from the continued solid demand in the EMEA/India region but also from stronger business in China due to the introduction of new legal requirements for the weight and length of truck and trailer combinations, among others. Adjusted EBIT in the fourth quarter amounted to EUR 19.8 million (previous year: EUR 20.4 million. Adjusted EBIT in the fourth quarter was slightly lower year-on-year due to the fact that the previous year's quarter contained other income of EUR 1.4 million from the sale of the AerWay product line whereas in the fourth quarter of 2016 extraordinary expenses for inventory write-downs and warranties in the amount of EUR 0.7 million had to be recognized in China.

Free cash flow almost doubles and nears EUR 68 million

As a consequence of better working capital management and less investments as compared to the previous year, free cash flow improved sharply to EUR 67.7 million (previous year: EUR 35.0 million). Despite the higher dividend payment for 2015 and the payment of the purchase price for KLL, net debt declined by EUR 25.3 million to EUR 97.1 million.

Dividend per share to increase by 10% to EUR 0.44

Based on the solid business performance and the Company's general policy to distribute between 40% and 50% of available net earnings as a dividend to shareholders, the Board of Directors is proposing a 10.0% dividend increase to the Annual General Meeting amounting to a dividend of EUR 0.44 per share for the 2016 financial year (previous year: EUR 0.40). This amount is equivalent to a dividend payout of EUR 20.0 million (previous year: EUR 18.1 million) and a payout ratio of 46.4% (previous year: 38.6%) of the available net earnings.