NORMA Group AG starts financial year 2013 with stable sales

NORMA Group AG ("NORMA Group"), a global market and technology leader for engineered joining technology, generated nearly stable sales and earnings in the first quarter of 2013 compared to the reference period in the previous year. Group sales over the first three months of the year amounted to EUR 159.3 million, in line with the previous year (EUR 159.7 million; minus 0.3%). Adjusted operating earnings (EBITA) of NORMA Group declined slightly by 2.9% to EUR 28.3 million in the first quarter of 2013 (previous year: EUR 29.2 million). As a result, the adjusted EBITA margin for the first three months of the financial year amounted to 17.8% (previous year: 18.3%).

“We are pleased that we could maintain stable sales in the first quarter of 2013 compared to previous year´s quarter, given the still uncertain economic development in Europe. The operating margin remains at a consistently high level,” says Werner Deggim, CEO of NORMA Group. With EUR 229.1 million, the order backlog as at 31 March 2013 had increased quarter on quarter (31 December 2012: EUR 215.4 million).

Acquisitions as growth drivers in EMEA and Asia-Pacific

NORMA Group’s sales in the EMEA region increased slightly in the first quarter of 2013 in spite of the overall economic situation. Sales improved by about 1.1% from EUR 99.2 million in the previous year to EUR 100.3 million, with contributions coming from the acquisitions of Connectors Verbindungstechnik in Switzerland, Nordic Metalblok in Italy and Groen Bevestigingsmaterialien in the Netherlands in 2012.

In the Americas region, sales over the first three months of 2013 declined by close to 7% from a high EUR 50.2 million in the previous year to EUR 46.7 million on the back of the sluggish economic development in the US.

Business in the Asia-Pacific region performed well. Sales in the first quarter of 2013 increased by 19.6% to EUR 12.3 million (previous year: EUR 10.3 million), largely as a result of the acquisition of Chien Jin Plastic in 2012 and the takeover of the distribution business of the Australian Davydick in January 2013. Davydick has been selling joining products for irrigation systems as well as valves and pumps particularly for agriculture and the sanitary and household goods sectors for over 20 years.  

Solid capital position for the Group

NORMA Group again improved its equity by EUR 17.3 million to EUR 305.6 million by 31 March 2013 (31 December 2012: EUR 288.3 million). The equity ratio increased to 42.4% compared to 41.7% at year-end 2012. Net debt ex hedging instruments further decreased and amounted to EUR 172.7 million at the end of the first quarter (31 December 2012: EUR 174.2 million).

Acquisitions in 2012 and 2013 and the expansion of existing facilities grew the workforce including temporary staff to 4,666 on 31 March 2013. This represents an increase of 190 employees compared to the previous year.

Guidance for 2013 confirmed

The forecast for 2013 as published in the annual report 2012 remains unchanged. „Although the economic environment proves difficult, we remain confident that we can reach our targets for the year,” says Werner Deggim.

NORMA Group expects sales at Group level to grow moderately year on year in 2013. The company projects additional sales of about EUR 20 million from the acquisitions of the years 2012 and 2013. The Company anticipates an EBITA margin in line with the adjusted margin of over 17% achieved over the three previous years (2010: 17.4%; 2011: 17.7%; 2012: 17.4%).