NORMA Group SE starts financial year 2016 with solid growth
Sales increased by 2.3 percent to EUR 226.6 million in the first quarter of 2016 compared to the same quarter last year
Adjusted EBITA improved by 2.2 percent to EUR 40.1 million
Outlook for financial year 2016 confirmed
NORMA Group SE ("NORMA Group"), a global market leader in engineered joining technology, achieved solid growth in the first quarter of financial year 2016. Sales rose by 2.3 percent to EUR 226.6 million compared to the same quarter of the previous year (Q1 2015: EUR 221.5 million). The organic growth amounted to 2.4 percent. Negative currency effects resulted in a 0.1 percent decline. Adjusted earnings before interest, taxes and amortisation of intangible assets (adjusted EBITA) increased by 2.2 percent to EUR 40.1 million (Q1 2015: EUR 39.2 million). The adjusted EBITA margin was 17.7 percent and thus remained at a high level (Q1 2015: 17.7 percent).
"We had a good start in financial year 2016 and managed to increase both our sales and our earnings again in the first quarter," said Werner Deggim, CEO of NORMA Group. "The EMEA region showed stronger organic growth as we had expected and the Asia-Pacific region continued to develop dynamically. We are confident that we will be able to continue to grow profitably in financial year 2016."
Stronger growth in the EMEA region and Asia-Pacific
In the EMEA (Europe, Middle East and Africa) region, NORMA Group managed to increase its sales by 6.1 percent to EUR 112.1 million (Q1 2015: EUR 105.6 million) thus far in 2016. This strong organic growth can be attributed for the most part to the upswing in the euro zone and continued positive development of the European automotive industry.
In the Americas region, NORMA Group generated sales of EUR 96.0 million, a slight 1.8 percent decline (Q1 2015: EUR 97.7 million). This development is mainly due to the weakness in the commercial vehicles and agricultural machinery sectors.
In the Asia-Pacific region, NORMA Group managed to increase its sales by 1.9 percent to EUR 18.6 million (Q1 2015: EUR 18.2 million). Despite the drop in China’s economic growth, the region recorded strong organic growth with offsetting negative currency effects and thus continued its sustained positive development.
Equity ratio increased again
Group equity rose to EUR 437.1 million as of 31 March 2016, an increase of 1.7 percent compared to the end of last year (31 December 2015: EUR 429.8 million). The equity ratio improved to 37.5 percent
(31 December 2015: 36.8 percent). Net debt including hedging instruments declined to EUR 347.8 million as of 31 March 2016 (31 December 2015: EUR 360.9 million). NORMA Group had 6,322 employees including temporary employees worldwide on 31 March 2016 (31 December 2015: 6,306).
Outlook for financial year 2016 confirmed
NORMA Group has reaffirmed its forecast for financial year 2016. The company expects to see solid organic sales growth of around 2 to 5 percent compared to 2015 and will strive to achieve a sustainable adjusted EBITA margin at the same level of previous years of over 17 percent (2015: 17.6 percent; 2014: 17.5 percent; 2013: 17.7 percent).
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.
NORMA Group SE
NORMA Group is a global market leader in engineered joining technology. The company manufactures a wide range of innovative connecting solutions and water management technology offering more than 35,000 products to customers in 100 countries with around 6,500 employees. NORMA Group helps its customers and business partners to 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. The company generated sales of around EUR 890 million in 2015. NORMA Group operates a global network of 22 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.