NORMA Group SE continues solid growth

NORMA Group SE (“NORMA Group”), a global market and technology leader for engineered joining technology, continued on its steady course over the first nine months of financial year 2013. Group sales increased by 3.3% to EUR 482.7 million (previous year: EUR 467.3 million) between January and September 2013 despite negative currency effects of EUR 6.3 million. The acquisitions made in 2012 and 2013 contributed EUR 21.2 million. Sales grew organically by 0.1% over the nine-month period. NORMA Group increased adjusted earnings before interest, taxes and amortization (adjusted EBITA) by 1.8% year on year to EUR 85.0 million between January and September 2013 (previous year: EUR 83.5 million). This resulted in a consistently high EBITA margin of 17.6% (previous year 17.9%).

Group sales in the third quarter of 2013 increased by 6.9% quarter on quarter to EUR 159.9 million (Q3 2012: EUR 149.6 million); 6.3% of this increase was organic. The adjusted EBITA grew by 12.0% to EUR 28.8 million in the third quarter (Q3 2012: EUR 25.7 million). The operating EBITA margin increased substantially year on year to 18.0% (Q3 2012: 17.2%).

“We were able to continue growing from a solid foundation. Positive acquisition sales in the EMEA and Asia-Pacific regions were complemented by substantial organic growth in the European market,” says Werner Deggim, CEO of NORMA Group. “In Europe, we expect particularly the introduction of the Euro 6 emissions standard to result in significantly improved and sustainable sales.” By 30 September 2013, the order backlog had grown year on year to EUR 230.3 million (30 September 2012: EUR 221.4 million).

Development in the regions

In the EMEA region, the economic development had positive effects on the development of sales over the first nine months of 2013. Sales in the region grew by 4.9% to EUR 296.2 million (previous year: EUR 282.5 million). Sales in the EMEA region grew organically by 1.4% over the nine month period and 6.7% in the third quarter. Additional contributions of EUR 11.2 million to the increase in sales over thefirst nine months of 2013 came from the acquisitions made in 2012 and 2013. In the EMEA region, NORMA Group invested in manufacturing facilities particularly in the German, British and Serbian sites.

In the Americas region, NORMA Group generated EUR 146.3 million in sales over the first nine months of 2013 (previous year: EUR 152.4 million). The 4.0% decline results from the subdued economic development in the reporting period and negative currency effects in the amount of 2.5%. Investments were made mainly in the production facilities in the US plants of Auburn Hills and St. Clair. NORMA Group continues to expand its production in Brazil and strengthen its presence in South America by building a manufacturing plant in Brazil and acquiring manufacturing assets for quick connectors, including tooling and injection molding machines.

The Asia-Pacific region performed well. Sales in the region grew by 24.1% to EUR 40.2 million over the nine months of the year (previous year: EUR 32.4 million), helped by the acquisition of Chien Jin Plastic in Malaysia and Davydick & Co. and Guyco in Australia. The companies manufacture and sell joining solutions for use in fresh water supply, irrigation and sanitary systems as well as in agricultural and industrial applications. Investments focused on building a second facility in China and producing urea fluid lines at the Chinese plant of Qingdao.

Solid equity ratio

NORMA Group's equity as at 30 September 2013 amounted to EUR 308.9 million, up 7.1% compared to the end of 2012 (31 December 2012: EUR 288.3 million). Accordingly, the equity ratio was 37.4% after 41.7% on 31 December 2012. The decline resulted mainly from the issuance of a EUR 125 million borrowers note and the corresponding increase in total assets. Net debt as at 30 September 2013 had improved compared to the year-end 2012 thanks to the positive cash flow and in spite of the dividend payment and acquisitions. Ex hedging instruments, net debt amounted to EUR 162.5 million at the end of the third quarter of 2013 (31 December 2012: EUR 174.2 million).

Further increase of workforce

Employee numbers have again increased over the first nine months of 2013 as a result of NORMA Group’s international expansion. NORMA Group had 4,822 employees as at 30 September 2013 (including temporary employees), 320 more than a year before. In Germany, NORMA Group had 918 employees at the end of the third quarter.

Guidance for 2013 confirmed

NORMA Group expects consolidated sales to grow moderately year on year in 2013. Furthermore, the acquisitions made in 2012 and 2013 contribute additional sales of about EUR 26 million. NORMA Group expects its EBITA margin for financial year 2013 to be in line with the margins of over 17% posted in the past three years (2010: 17.4%; 2011: 17.7%; 2012: 17.4%).