NORMA Group continues to grow in the first quarter of 2012

NORMA Group AG (“NORMA Group”), a global market and technology leader in engineered joining technology, reported a rise in sales and earnings in the first quarter of 2012, thereby continuing its growth course. Group sales in the first three months of 2012 were up 6.3% to EUR 159.7 million (last year: EUR 150.3 million). Sales growth was particularly strong in the Americas and Asia-Pacific regions, while revenue in the EMEA region (Europe, Middle East, Africa) was almost unchanged.

NORMA Group’s adjusted operating earnings (EBITA) rose to EUR 29.2 million in the first quarter of 2012, representing an increase of 2.9% on last year’s figure of EUR 28.4 million. The Americas region made a major contribution to this improvement. The adjusted EBITA margin reached 18.3% for the first three months of the current financial year (previous year: 18.9%).

“NORMA Group’s steady growth shows that we are moving in the right direction and that our business model is working very successfully. We will continue to invest in our company and actively increase capacities to ensure further growth,” says Werner Deggim, CEO of NORMA Group. “Our order books are full. This provides a solid foundation for the future.” The order backlog amounted to EUR 227.7 million as of 31 March 2012, a 4.2% higher than previous quarter´s figure (31 December 2011: EUR 218.6 million).

The Americas and Asia-Pacific regions are the growth drivers

As expected, NORMA Group’s revenue in the EMEA region was stable due to the overall economic situation in the first quarter of 2012. Sales figures dropped slightly by 0.6% from EUR 99.8 million last year to EUR 99.2 million. The main reason for this was the economic situation and the lower level of demand, especially in southern European countries.

The Americas region proved to be a growth driver in the first three months of 2012. Sales figures in this region rose from EUR 42.6 million last year to EUR 50.2 million. This sharp increase of 17.9% was primarily due to strong organic growth with significantly higher volumes. 

Business development remained positive in the Asia-Pacific region. Sales in the first quarter of 2012 went up by 30.3% to EUR 10.3 million (previous year: EUR 7.9 million). This region is becoming increasingly important for the future growth of NORMA Group. The sales network in this region is therefore being expanded further in 2012. In January 2012, NORMA Group opened a representative office in Vietnam, a country with huge growth potential. This will be followed by further branches in Manila (Philippines) and Jakarta (Indonesia) in May 2012. “By increasing our presence in Asia, we are tapping into new markets. We are introducing our brands to these countries and establishing nationwide sales partnerships,” explains Deggim.

Solid Group equity base of 40.6%

NORMA Group’s equity has recorded another rise since the end of 2011 (EUR 256.0 million) and amounted to EUR 271.9 million as of 31 March 2012. The equity ratio increased to 40.6% (31 December 2011: 39.5%). Net debt was reduced further to EUR 186.5 million as of the end of the first quarter (31 December 2011: EUR 198.5 million).

The number of employees went up following the opening of new facilities and expansion of existing ones in 2011 and totalled 4,476 including temporary employees as of 31 March 2012. This was a yearon-year rise of 272 employees (31 March 2011: 4,204 employees).

Outlook 2012

The outlook for 2012 provided in the 2011 annual report has not changed. The NORMA Group Management Board expects Group sales to grow by 3% to 6% in 2012. The consolidation of the Group’s acquisition of the Swiss company Connectors Verbindungstechnik AG, specialised on connector systems for the pharmaceutical and biotechnology industry, from April 2012, will result in additional sales of EUR 10 million. The EBITA margin is expected to be the same as the adjusted margin for the last two years (2010: 17.4%, 2011: 17.7%). Order entry figures in the first quarter of 2012 and the high order backlog support this forecast.

NORMA Group AG – in figures