NORMA Group publishes business figures for 2011

NORMA Group AG (“NORMA Group”), a global market and technology leader in engineered joining technology, achieved record sales and earnings figures in the 2011 financial year. Sales improved by 18.5% to EUR 581.4 million (2010: EUR 490.4 million) in the reporting period. Excluding acquisitions, NORMA Group's organic growth came to EUR 65.6 million in 2011, representing a 13.4% increase year-on-year. The US companies R.G.Ray (NORMA Illinois) and Craig Assembly (NORMA St. Clair) were fully integrated at the end of the first quarter of 2011 and generated EUR 32.0 million in the 2011 financial year. NORMA Group's adjusted operating earnings (adjusted EBITA) totalled EUR 102.7 million (2010: EUR 85.4 million), an increase of 20.2%. All three regional reporting segments, EMEA (Europe, Middle East, Africa), the Americas and Asia-Pacific, contributed to this improvement. NORMA Group's adjusted EBITA margin of 17.7% was a new record high (2010: 17.4%). Werner Deggim, CEO of NORMA Group, said: "2011 was an outstanding year for NORMA Group. We set new sales and earnings records. Our order backlog also grew, showing that demand for our innovative products remains strong. We are also optimistic about the current 2012 financial year." NORMA Group expects Group sales to grow by between 3% and 6% compared to the previous year.

NORMA Group's order backlog also grew considerably in 2011. Its volume of EUR 218.6 million exceeds the previous year's level (EUR 188 million) by more than 16%. All regional segments of NORMA Group posted an increased order backlog. In the fourth quarter of 2011, NORMA Group's sales came to EUR 139.6 million, an increase of 8.3% over the same quarter in the previous year due to a continuously high customer demand. 

Sales and earnings up in all regions

The EMEA region as a whole performed well in 2011, as did the eurozone and Eastern European markets. Sales in this region grew by 10.7% from EUR 336.7 million to EUR 372.7 million. 2011 saw NORMA Group expand its presence in the dynamic Eastern European markets and open a new production facility in Serbia. The facility focuses on producing fluid systems and allows NORMA Group to satisfy the considerable demand coming from Western and Eastern Europe.

The Americas segment also posted a positive operating result in 2011. Sales increased by 39.8% to EUR 173.0 million (2010: EUR 123.8 million). This considerable improvement was due to an increase in volumes and the consolidation effects resulting from the acquisitions of R.G.Ray (NORMA Illinois) and Craig Assembly (NORMA St. Clair). Acquiring the two companies in 2010 allowed NORMA Group to add to its joining technology product range and greatly expand its presence in North America. NORMA Group plans to use its new distribution centre in Brazil to strengthen its relationship with local customers and acquire new customers in order to secure a share of the South American market, which is growing at an above-average rate.

Our performance in the Asia-Pacific region remains positive and highly dynamic. The improved standard of living in the emerging markets in the region has also led to increased demand for highquality products. NORMA Group consistently expanded its activities in the attractive markets in the region and established an Asia-Pacific regional management team to make use of the increasing opportunities in the area. NORMA Group has created a basis for further growth by opening a production facility in Thailand, taking over the joint venture shares of its partner in India and planning to expand its capacities in China. Sales in this region increased by 19.1% in 2011 to EUR 35.7 million (2010: EUR 29.9 million).

Significantly improved equity ratio – considerable reduction in net debt

At year-end 2011, the consolidated statement of financial position showed equity of EUR 256.0 million (31 December 2010: EUR 78.4 million). This rise was largely due to the capital increase related to the company's IPO. The equity ratio improved to 39.5% at the end of the period under review, from 13.5% in the previous year. "We have laid a firm foundation for future growth with our IPO last year", said Dr. Othmar Belker, NORMA Group's Chief Financial Officer. "Our strategy is based on strengthening our organic growth and targeted value-adding acquisitions. Our line of credit of EUR 125 million gives us the financial flexibility we need." At year-end 2011, NORMA Group's net debt was down from EUR 344.1 million in 2010 to EUR 198.5 million. Gearing (ratio of net debt to equity) improved considerably from 4.4 at the end of 2010 to 0.8.

Dividend of EUR 0.60 per share proposed

Due to the company's good earnings position, the Management Board and the Supervisory Board of NORMA Group have proposed a dividend of EUR 0.60 per share for the 2011 financial year. This corresponds to a dividend payout of EUR 19.1 million. The payout rate is 33.2% of the adjusted profit for the 2011 period (EUR 57.6 million). NORMA Group will pursue a sustainable dividend policy in the future, based around a payout rate of approximately 30% to 35% maximum, provided the economic situation allows it.

NORMA Group had 4,252 employees including temporary employees as at 31 December 2011. The workforce grew by 422 or 11.0% in comparison to the previous year (3,830 employees). The company had around 908 employees in Germany at year-end 2011.

Sales expected to increase in 2012

The NORMA Group Management Board expects the global economy to continue growing in 2012, albeit at a slower pace than in the previous year. The main growth drivers are expected to be the BRIC group of countries and other emerging markets. NORMA Group expects sales growth for the Asia-Pacific region in the high single-digit percentage range, thanks to solid growth in China, the expansion of its activities in some Asian markets and an improved market share. Following the solid growth in the previous year, NORMA Group believes the North American market will provide further opportunities for growth, particularly in the commercial vehicle and premium vehicle sector. Business in NORMA Group's Americas region is expected to experience growth in the low single-digit percentage range. NORMA Group's business will vary across the EMEA region in 2012.

NORMA Group expects mild growth in Germany and most Northern European markets. Southern European markets, on the other hand, will be influenced by macroeconomic developments in individual countries. NORMA Group expects Group sales in 2012 to grow by between 3% and 6% overall compared to the previous year. Sales growth is expected to accelerate further in 2013 compared to 2012. From an operating perspective, NORMA Group intends to achieve an EBITA margin in 2012 that is at least equivalent with the adjusted margins of the previous two years (2010: 17.4%, 2011: 17.7%).