NORMA Group increases its sales to EUR 275.6 million in first quarter of 2019
- Sales in the first quarter of 2019 rose by 1.1 percent compared to the same quarter of last year to EUR 275.6 million
- Adjusted EBITA declined by 13.3 percent to EUR 39.6 million
- Adjusted EBITA margin for the full year 2019 expected to be at the lower end of the range of between 15 and 17 percent
The business development in the first quarter of 2019 is mainly attributable to the lower production and sales figures in the automotive sector in all three regions. Above all, the EMEA and Asia-Pacific regions were characterized by a very volatile market environment: lower production volumes in the European automobile industry due to the difficulties encountered in the summer of 2018 in implementing the standardized, stricter test procedure for emission values (WLTP) and a sharp decline in demand from the Chinese automotive industry. For fiscal year 2019, NORMA Group continues to expect an adjusted EBITA margin within the range of 15 to 17 percent forecast in March 2019, whereby the lower end of this range is more likely to be reached.
“In view of the uncertain market situation worldwide and the more volatile than expected market environment, particularly in the EMEA and Asia-Pacific regions, we have substantiated our forecast for the adjusted EBITA margin in 2019,” said Bernd Kleinhens, CEO of NORMA Group. “We are confident that the situation on the markets will improve in the coming quarters and that we are well positioned for the future with our broad product range and commitment to key markets such as electromobility and water management.”
Development in EMEA, the Americas and Asia-Pacific
In the EMEA region (Europe, Middle East and Africa), sales fell slightly year-on-year by 2.8 percent to EUR 128.4 million (Q1 2018: EUR 132.2 million). The decline in sales was due in particular to the continuing WLTP issues at the beginning of the year and a decline in business in the automotive sector due to lower production and sales figures. By contrast, the acquisition of Statek in Germany made a positive contribution to sales.
In the Americas region, sales in the first quarter of 2019 rose solidly by 4.0 percent year-on-year to EUR 111.6 million (Q1 2018: EUR 107.3 million). The water management segment in particular posted strong growth in the first three months of 2019. While the business with commercial vehicles and agricultural machinery continued to develop solidly, production figures in the North American automotive sector were negative.
In the Asia-Pacific region, NORMA Group increased its sales by 7.5 percent year-on-year from January to March 2019 to EUR 35.6 million (Q1 2018: EUR 33.1 million). While the Chinese automotive sector experienced significant production declines, the acquisition of Kimplas in India contributed to additional sales revenues.
As of the reporting date March 31, 2019, NORMA Group had 9,065 employees worldwide, including temporary staff (December 31, 2018: 8,865 employees).
Forecast confirmed at the lower end of the expected range
NORMA Group confirms its forecast of moderate organic Group growth of around 1 to 3 percent. In addition, sales from the acquisitions of Kimplas and Statek are expected to total around EUR 13 million. The company is sticking to its target of an adjusted EBITA margin of between 15 and 17 percent and expects to achieve the lower end of the range. NORMA Group expects net operating cash flow of around EUR 100 million for 2019.
NORMA Group SE in figures
*Adjustments: Q1/2019: by integration costs (EUR 0.1 million), step-up effects from purchase price allocations (EUR 0.9 million) and “Rightsizing/Footprint” (EUR 1.7 million); Q1/2018: by acquisition-related costs and step-up effects from purchase price allocations; Q4/2018: by acquisition-related costs, integration costs, step-up effects from purchase price allocations and “Rightsizing/Footprint.”
**Net debt including hedging instruments (hedging instruments as of March 31, 2019, amounting to: EUR 0.9 million; March 31, 2018: EUR 1.9 million; December 31, 2018: EUR 0.8 million)
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Publication of the financial figures for the second quarter of fiscal year 2019 is scheduled for August 6, 2019.