NORMA Group AG still on course for success

NORMA Group AG (“NORMA Group”), an international market and technology leader in engineered joining technology, had a very successful first half in 2012. Group sales increased by 7.4% between January and June 2012 to EUR 317.7 million (first half of 2011: EUR 295.9 million). Organic growth came to 3.4%. Positive currency effects (+2.9%) and the acquisition of the Swiss company Connectors Verbindungstechnik AG (+1.1%) on 19 April also contributed to the increase in revenues. Adjusted operating earnings (adjusted EBITA) rose to EUR 57.8 million in the first half of 2012, a significant increase of 7.3%.The adjusted EBITA margin was 18.2% in the first half of 2012, similar to the high level of the first half of 2011.

“NORMA Group is still on course for growth. We are satisfied with our performance in the first half of the year. We improved our sales and earnings once again, despite challenging economic conditions. Our order backlog remains high, showing that global demand for our products remains healthy,” said Werner Deggim, CEO of NORMA Group. The order backlog totalled EUR 229.3 million at the end of the first half of 2012, a 5.5% increase over the same period in the previous year (EUR 217.3 million). “Our consistent growth is shoring up NORMA Group’s leading position in the market for high-quality joining technology and is confirmation of our growth strategy. We are confident that we will achieve our sales and earnings targets for 2012.”

Strong growth in the Americas and Asia-Pacific, slight decline in EMEA

Despite the overall economic situation, sales in the EMEA (Europe, Middle East, Africa) region only posted a minor decline in the first half of 2012. Sales in this region decreased by 1.0% to EUR 192.4 million (first half of 2011: EUR 194.2 million). Over the coming months, NORMA Group will construct a new production hall in Newbury in the United Kingdom in order to meet the increased demand for NORMACONNECT® V profile clamps in Europe.

NORMA Group drove up sales by 21.9% in the Americas region thanks to robust demand and positive currency trends. Sales increased to EUR 104.3 million in the first half of 2012 (first half of 2011: EUR  85.6 million). The positive development of the US-based companies R.G.Ray (NORMA Illinois) and Craig Assembly (NORMA St. Clair) acquired in 2010 also contributed to it.

The Asia-Pacific region also posted another significant increase in sales over the first half of 2012. Sales increased by 31.0% to EUR 21.0 million (first half of 2011: EUR 16.1 million). NORMA Group is expanding its presence in the Asia-Pacific region due to the increasing importance of the area. After opening its offices in Vietnam at the beginning of the year, NORMA Group put new branches into operation in the Philippines and Indonesia in May 2012. NORMA Group is opening a new production facility in Talegaon, near Pune in India, to meet the increasing demand for engineered joining technology in India. The facility is scheduled to begin production in 2012. In addition to expanding production in England, NORMA Group set up new production capacities for NORMACONNECT® V profile clamps in Qingdao, China.

Equity situation strengthened - solid equity ratio of 39.0%

As at 30 June 2012, NORMA Group’s statement of financial position included equity of EUR 268.5 million, representing an increase of almost 5% compared to year end 2011 (31 December 2011: EUR 256.0 million). The equity ratio remained largely unchanged at 39.0%, despite paying out EUR 19.1 million in dividends for the 2011 financial year in the previous quarter. Net debt totalled EUR 224.6 million on 30 June 2012, EUR 26.1 million higher than on 31 December 2011 (EUR 198.5 million). This increase was among others due to the acquisition of Connectors Verbindungstechnik AG and the dividend payment. As at the end of the first half of 2012, adjusted earnings per share increased by 15% to EUR 1.09, compare to the previous year.

Including temporary employees, NORMA Group’s workforce grew once again, primarily due to the company expanding its production capacities. NORMA Group had 4,485 employees as at 30 June 2012, 209 more than a year before. NORMA Group had 921 employees in Germany as at the reporting date of 30 June 2012.

Outlook for 2012 confirmed

NORMA Group remains committed to the outlook for the 2012 financial year published in its 2011 financial report. NORMA Group still expects sales growth of between 3% and 6% in the 2012 financial year. NORMA Group will also enjoy around EUR 10 million in sales from the consolidation of the newly acquired Swiss company Connectors Verbindungstechnik AG, as well as around EUR 3 million from the acquisition of Nordic Metalblok S.r.l in Italy in July. The 2012 EBITA margin should be at least equivalent to the adjusted margin of the two previous years (2010: 17.4%, 2011: 17.7%). NORMA Group’s forecast is backed up by the order entry in the first half of 2012 and the consistently healthy order backlog.