09.05.2018
NORMA Group SE DE000A1H8BV3
DGAP-News: NORMA Group with strong organic growth in the first quarter of 2018
DGAP-News: NORMA Group SE / Key word(s): Interim Report
NORMA Group with strong organic growth in the first quarter of 2018
09.05.2018 / 07:02
The issuer is solely responsible for the content of this announcement.
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NORMA Group with strong organic growth in the first quarter of 2018
- Sales of EUR 272.6 million 6.9 percent higher in the first quarter of 2018
than in the same quarter of the previous year
- Strong organic sales growth of 13.6 percent
- Adjusted EBITA of EUR 45.7 million
- Sales forecast for fiscal year 2018 increased
Maintal, Germany, May 9, 2018 - NORMA Group achieved sales growth of 6.9
percent to EUR 272.6 million in the first quarter of 2018 compared to the
first quarter of the previous year (Q1 2017: EUR 254.9 million). Organic
growth was at 13.6 percent. Fengfan, the company acquired in the second
quarter of 2017, contributed an additional EUR 2.5 million to growth.
Negative currency effects hampered sales growth by 7.6 percent. Adjusted
earnings before interest, taxes, depreciation and amortization of intangible
assets (adjusted EBITA) rose by 1.6 percent to EUR 45.7 million in the first
three months of 2018 compared to the same period of the previous year (Q1
2017: EUR 45.0 million). The adjusted EBITA margin was 16.8 percent (Q1
2017: 17.7 percent). This was mainly influenced by high raw material prices.
This related in particular to alloy surcharges and price increases for
engineering plastics as a result of market shortages. Net operating cash
flow fell by EUR 18.3 million to EUR -13.8 million (Q1 2017: EUR +4.5
million). This was mainly due to disproportionately high changes in working
capital as of the reporting date due to strong growth as well as to the
year-on-year increase in expenditures for investments from operating
business.
"We achieved strong organic growth in the first quarter of 2018," says Bernd
Kleinhens, Chairman of the Management Board of NORMA Group. "This shows that
our products are in high demand on the market and is reflected in the
increased sales forecast for 2018. However, high raw material prices and
negative currency effects had a negative impact on earnings. We want to
sustainably strengthen our market position in the future. That is why we are
continuing to invest in new technologies and markets. Our recent acquisition
of the Indian water management solutions specialist Kimplas is another step
toward ensuring steady growth in one of our focus areas."
The acquisition of 100 percent of the shares in Kimplas Piping Systems Ltd.
is expected to be completed in mid-2018. Kimplas products include
compression fittings, sprinklers and drippers, valves, filters and
electrofusion fittings such as tapping tees for gas and water pipes.
Growth in all three regions
In the EMEA (Europe, Middle East and Africa) region, sales rose by 3.4
percent to EUR 132.2 million in the first quarter of 2018 compared to the
same period of the previous year (Q1 2017: EUR 127.9 million). This growth
is due in particular to the good business in the automotive sector, which is
attributable to the generally good environment in the industry with rising
production and sales figures.
In the Americas region, NORMA Group increased sales in the first quarter of
2018 by 7.7 percent to EUR 107.3 million compared to the same period of the
previous year (Q1 2017: EUR 99.7 million).
The market for commercial vehicles and agricultural machinery significantly
recovered, leading to a good order situation in the automotive industry. The
Water Management division also developed very positively after
weather-related weaknesses in fiscal year 2017.
In the Asia-Pacific region, sales grew significantly by 20.9 percent to EUR
33.1 million from January to March 2018 compared to the first quarter of
2017 (Q1 2017: EUR 27.4 million). Growth was driven primarily by strong
customized solutions business for the automotive industry, which benefited
from the high demand for joining technology, particularly in China.
Equity ratio rises again
Group equity amounted to EUR 552.6 million on March 31, 2018, an increase of
3.4 percent compared to the end of last year (December 31, 2017: EUR 534.3
million). The equity ratio rose to 42.3 percent (December 31, 2017: 40.7
percent). Net debt, including hedging instruments, as of March 31, 2018,
amounted to EUR 361.4 million (December 31, 2017: EUR 344.9 million). This
was mainly due to a decline in cash and cash equivalents due to cash
outflows from operating and investing activities. As of the reporting date,
March 31, 2018, NORMA Group employed a total of 8,120 employees worldwide,
including temporary workers (December 31, 2017: 7,667).
Sales forecast for fiscal year 2018 increased
NORMA Group has grown stronger than expected in the first three months of
2018. On the basis of group sales from January until April 2018 as well as
the expected group sales until year end the Management Board of NORMA Group
SE increased its sales forecast for fiscal year 2018 on May 7, 2018. The
company thus expects sales to rise organically by around 5 to 8 percent in
2018 compared to 2017. The Management Board previously expected a solid
organic growth of around 3 percent to 5 percent. In addition, revenues of
around EUR 5 million are expected from the acquisition of Fengfan. The goal
is to achieve a sustained adjusted EBITA margin at the same level of
previous years of over 17 percent (2017: 17.2 percent, 2016: 17.6 percent
2015: 17.6 percent).
NORMA Group in figures
Key figures at a glance (in 1st Quarter 1st Quarter 4th Quarter
EUR millions) 2018 2017 2017
Income statement 01/01 - 01/01 - 10/01 -
03/31/2018 03/31/2017 12/31/2017
Sales 272.6 254.9 253.6
Adjusted EBITA* 45.7 45.0 40.1
Adjusted EBITA margin* 16.8% 17.7% 15.8%
Balance sheet 03/31/2018 03/31/2017 12/31/2017
Total assets 1,307.6 1,363.7 1,312.0
Equity 552.6 505.0 534.3
Equity ratio 42.3% 37.0% 40.7%
Net debt** 361.4 407.4 344.9
*Adjustments: Q1/2018 for acquisition-related costs (EUR 0.5 million) and
step-up effects from purchase price allocations (EUR 0.9 million); in
Q1/2017 by integration costs, step up effects from purchase price
allocations and depreciation from purchase price allocations; Q4/2017 for
integration costs, step-up effects from purchase price allocations,
reimbursement of transaction taxes and depreciation from purchase price
allocations
**Net debt including hedging instruments (hedging instruments EUR 1.9
million on 03/31/2018; EUR 2.3 million on 03/31/2017; EUR 1.4 million on
12/31/2017)
Additional information is available in the Investor Relations section on
www.investors.normagroup.com. Press photos are available from our platform
at www.normagroup.com/images.
Contact
Alexandra Lipkowski
Group Communications
Tel.: +49 (0)6181 - 6102 747
E-Mail: [email protected]
Andreas Trösch
Investor Relations
Tel: +49 (0)6181 - 6102 741
E-Mail: [email protected]
About NORMA Group
NORMA Group is an international market and technology leader in engineered
joining technology (joining, connecting and fluid handling technology). The
company manufactures a wide range of innovative connecting solutions and
water management technology offering more than 40,000 products to customers
in 100 countries with around 8,100 employees. NORMA Group helps its
customers and business partners react to global challenges such as climate
change and increasing scarcity of resources. NORMA Group joining products
can be found in vehicles and trains, ships and aircraft, buildings and water
management as well as in applications for the pharmaceutical and
biotechnology industry. In 2017 the company generated sales of around EUR
1.02 billion. NORMA Group operates a global network of 27 production
facilities as well as numerous sales and distribution sites across Europe,
the Americas, and Asia-Pacific. NORMA Group has its headquarters in Maintal,
Germany. NORMA Group SE is listed on the German stock exchange (Prime
Standard) and included in the MDAX index.
Disclaimer
This press release contains certain future-oriented statements.
Future-oriented statements include all statements which do not relate to
historical facts and events and contain future-oriented expressions such as
"believe," "estimate," "assume," "expect," "forecast," "intend," "could," or
"should" or expressions of a similar kind. Such future-oriented statements
are subject to risks and uncertainties since they relate to future events
and are based on the company's current assumptions, which may not in the
future take place or be fulfilled as expected. The company points out that
such future-oriented statements provide no guarantee for the future and that
the actual events including the financial position and profitability of
NORMA Group SE and developments in the economic and regulatory fundamentals
may vary substantially (particularly on the down side) from those explicitly
or implicitly assumed in these statements. Even if the actual assets for
NORMA Group SE, including its financial position and profitability and the
economic and regulatory fundamentals, are in accordance with such
future-oriented statements in this press release, no guarantee can be given
that this will continue to be the case in the future.
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09.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: NORMA Group SE
Edisonstr. 4
63477 Maintal
Germany
Phone: +49 6181 6102 741
Fax: +49 6181 6102 7641
E-mail: [email protected]
Internet: www.normagroup.com
ISIN: DE000A1H8BV3
WKN: A1H8BV
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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