Norma Group

NORMA Group SE starts with positive momentum into 2014 increasing results in the first quarter


Maintal, Germany, 7 May 2014 – NORMA Group SE (“NORMA Group”), a global market and technology leader for engineered joining technology, started with positive momentum into financial year 2014. The MDAX-listed company increased group sales and earnings. Group sales in the first three months of the year grew by 11.6% year on year to EUR 177.8 million (Q1 2013: EUR 159.3 million). Organic growth amounted to 12.6%. While the acquisitions from the previous year contributed 1.6% to overall growth, negative currency effects resulted in a 2.6% decline in sales. Adjusted operating earnings (adjusted EBITA) improved by 15.2% to EUR 32.6 million in the first quarter of 2014 (Q1 2013: EUR 28.3 million). This brought the adjusted EBITA margin over the first three months of this financial year to 18.4% (Q1 2013: 17.8%).

“As we start into the new year, the company benefits from the macroeconomic recovery and greater demand for our products that results from the stricter requirements of the new EURO-6 emissions standard,” says Werner Deggim, CEO of NORMA Group. “All three reporting segments, EMEA, the Americas and Asia-Pacific, contributed to the excellent results of the first quarter of 2014. This makes us confident for the remainder of the financial year.” The order backlog remained strong with EUR 238.5 million on 31 March 2014, growing by 4.1% year on year (31 March 2013: EUR 229.1 million).

Growth across all regions
Sales in the EMEA (Europe, Middle East and Africa) region grew by 8.1% to EUR 108.4 million in the first quarter of 2014 (Q1 2013: EUR 100.3 million). The macroeconomic recovery and the surge in production of new engine generations that comply with the legally required EURO-6 emissions standard contributed to the strong organic growth over the first three months of the year.

In the Americas region (North, Middle and South America), NORMA Group generated EUR 54.6 million in sales in the first quarter of 2014. This represents a 16.9% increase compared to EUR 46.7 million in the quarter of the previous year. On 22 April 2014, NORMA Group started the production of quick connectors and fluid systems for the automotive and commercial vehicle industry in Atibaia, Brazil. From June 2014, the new plant will also produce the exhaust pipe clamps Euro Coupler and Accuseal as well as the V profile clamps for the South American market. On 28 April 2014, NORMA Group acquired the business activities of Five Star Clamps Inc., US. The company manufactures and sells joining solutions for various applications and industries.

Sales in the Asia-Pacific region continued on their positive trend and rose by 20.4% to EUR 14.8 million (Q1 2013: EUR 12.3 million). In February 2014, NORMA Group acquired the remaining 15% of the shares in Chien Jin Plastic Sdn. Bhd., Malaysia, bringing its share in the manufacturer of thermoplastic joining elements for drinking and domestic water supply applications as well as irrigation systems to 100%.

Strong group-level equity ratio
The Group’s equity amounted to EUR 336.1 million on 31 March 2014. This represents a EUR 16.2 million increase compared to the previous quarter (31 December 2013: EUR 319.9 million). As a result of partial debt repayments and strong earnings the equity ratio rose from 38.8% at year-end 2013 to 44.9% at the end of the first quarter of 2014. Net debt ex hedging instruments remained almost unchanged quarter on quarter at EUR 138.3 million on 31 March 2014 (31 December 2013: EUR 138.2 million). The consistently positive cash flow development improved leverage (net debt/EBITDA) to 1.0 by 31 March 2014 (31 March 2013: 1.4).

Overall, NORMA Group had 5,186 employees including temporary staff on 31 March 2014. This represents a year-on-year increase in headcount by 520 and results from last year’s opening of new facilities, expansions of existing plants and acquisitions. In Germany, NORMA Group had 950 employees including temporary staff on 31 March 2014.

Guidance for 2014 unchanged
In the light of the advantageous business development in the first quarter of 2014, NORMA Group confirms its guidance for financial year 2014 as published in its annual report 2013. Compared to 2013, NORMA Group expects group sales in financial year 2014 to grow organically by around a solid 4 to 7%. In addition, NORMA Group anticipates to generate sales of around EUR 8 million from the acquisitions of Variant S.A., Poland, Guyco Pty. Ltd., Australia, and Five Star Clamps Inc., US. In 2014 NORMA Group targets a sustainable adjusted EBITA margin at the level of the two previous years of over 17% (2013: 17.7%; 2012: 17.4%).

NORMA Group SE starts with positive momentum into 2014 increasing results in the first quarter.pdf