DGAP-News

SAF-HOLLAND S.A.: Strong organic sales growth in the first quarter of 2017 - Seite 2

CFO Dr. Matthias Heiden in his comments on the quarter's results stated: "We had a solid start into the year with our strong performance in the first quarter of 2017 and were even able to accelerate our organic growth in a mixed market."

EBIT slightly higher year-on-year despite U.S. restructuring

EBIT in the first three months of 2017 rose slightly from EUR 20.8 million to EUR 21.0 million despite the burden of one-time restructuring costs totaling EUR 2.7 million (previous year: EUR 0.3 million). The majority of these restructuring costs (EUR 2.1 million) resulted from the plant consolidation in North America, which was announced in January 2017 and is currently being implemented. Further restructuring costs of EUR 0.3 million were incurred for the merger of the two production sites in Brazil.

Adjusted EBIT margin in the first quarter of 2017 at 8.7%

EBIT adjusted for the aforementioned restructuring costs and effects from the purchase price allocation of EUR 1.4 million (EUR 1.6 million) exceeded the previous year's level by 10.6% reaching EUR 25.1 million (previous year: EUR 22.7 million). At 8.7% (previous year: 8.7%), the adjusted EBIT margin in the first quarter was unchanged compared to the prior year and was thereby within the 8% to 9% range targeted for the full year of 2017.

Slight improvement in finance result

The finance result for the first quarter of 2017 was EUR -4.3 million (previous year:

EUR -4.9 million). Whereas the first quarter of 2016 still contained expenses of EUR 1.2 million from the measurement of a derivative related to a promissory note issued in November 2015, the first quarter of 2017 no longer contained any such expenses. Net interest expenses, on the other hand, rose to some extent after establishing the financing basis in the previous year for complementary acquisitions and collaborations as set out in the Company's Strategy 2020. Net interest expenses increased in the first quarter of 2017 to EUR -3.4 million (previous year: EUR -2.9 million).