MAINTAL, Germany, Nov. 8, 2017 /PRNewswire/ -- NORMA Group, a global market leader in engineered joining technology, increased its sales by 12.4 percent to EUR 763.4 million from January to September 2017, compared to the first nine months of the previous year (Q1-Q3 2016: EUR 679.4 million).
The company grew organically by 6.0 percent. Growth from the acquisitions of Autoline, Lifial and Fengfan amounted to 6.6 percent, while negative currency effects had a negative impact of 0.2 percent. In the first nine months of 2017, adjusted earnings before interest, taxes, depreciation and amortization of intangible assets (adjusted EBITA) rose by 9.6 percent to EUR 134.4 million compared to the same period of the previous year (Q1-Q3 2016: EUR 122.6 million). The adjusted EBITA margin was at a sustained high level of 17.6 percent (Q1-Q3 2016: 18.0 percent).
"We achieved solid growth in the first nine months of 2017," said Werner Deggim, CEO of NORMA Group. "Sales in the Asia-Pacific region in particular grew strongly. We are also pleased with the results in the EMEA and Americas regions. We therefore confirm our sales forecast at Group level of around four to seven percent organic growth and additionally around 55 million euros from acquisitions for the full year 2017."
Group sales for the third quarter of 2017 increased by 12.8 percent to EUR 244.4 million (Q3 2016: EUR 216.6 million) compared to the same period of the previous year. Adjusted EBITA rose by 10.4 percent to EUR 42.7 million (Q3 2016: EUR 38.7 million). At 17.5 percent, the adjusted EBITA margin was at a consistently high level (Q3 2016: 17.9 percent).
Growth in all three regions
In the EMEA (Europe, Middle East and Africa) region, sales increased by 11.1 percent from January to September 2017 to EUR 369.1 million compared to the first nine months of 2016 (Q1-Q3 2016: EUR 332.2 million). The positive development of sales in the region is mainly attributable to the good business in the automotive sector, which was boosted by the generally positive development of the industry with rising production and sales figures. In addition, sales revenues from the acquisitions of Autoline and Lifial also contributed to growth.
Sales in the Americas region rose by 6.5 percent in the first nine months of 2017 to EUR 309.7 million (Q1-Q3 2016: EUR 290.8 million). This was due in particular to the strong recovery in the commercial vehicle and agricultural machinery market in the US, as well as the revenue from the acquisition of the Mexican Autoline business.
In the Asia-Pacific region, compared to the first nine months of 2016, sales from January to September 2017 increased by 50.2 percent to EUR 84.7 million (Q1-Q3 2016: EUR 56.4 million). Besides the very good business development in Engineered Joining Technology (EJT), including revenue from the Chinese Autoline business, the additional revenue from Fengfan, the company acquired in the second quarter of 2017, also contributed to this development.
Slight rise in equity and the equity ratio
As of September 30, 2017, the Group's equity increased by 0.4 percent to EUR 485.5 million compared to the end of 2016 (December 31, 2016: EUR 483.6 million). The equity ratio as of September 30, 2017, was 36.9 percent (December 31, 2016: 36.2 percent). Net debt, including hedging instruments, totaled EUR 398.3 million on the reporting date September 30, 2017, an increase of 1.0 percent compared to the end of 2016 (December 31, 2016: EUR 394.2 million).
Due to international expansion, the number of employees rose by 916 compared to the end of 2016 to 7,580 worldwide, including temporary workers, as of September 30, 2017 (December 31, 2016: 6,664 employees).
Forecast for 2017 confirmed
NORMA Group confirms its forecast for fiscal year 2017 at Group level. The company expects Group sales to grow organically by around 4 to 7 percent in 2017, compared to 2016. In addition, revenues from the acquisitions of Autoline, Lifial and Fengfan of around EUR 55 million are expected. The company aims to achieve a sustained adjusted EBITA margin at the same level of previous years of more than 17.0 percent for fiscal year 2017 (2016: 17.6 percent, 2015: 17.6 percent, 2014: 17.5 percent).
The interim statement on the third quarter of 2017 can be obtained at www.normagroup.com/financial reports. For further information, please refer to the Investor Relations section at www.normagroup.com/IR.
Publication of the preliminary figures for fiscal year 2017 is scheduled for February 14, 2018.
About NORMA Group
NORMA Group is a global market leader in engineered joining technology. The company manufactures a wide range of innovative connecting solutions and water management technology offering more than 35,000 products to customers in 100 countries with around 7,600 employees. NORMA Group joining products can be found in vehicles and trains, ships and aircraft, buildings and water management as well as in applications for the pharmaceutical and biotechnology industry. The company generated sales of around EUR 895 million in 2016.
This press release contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and events and contain future-oriented expressions such as "believe," "estimate," "assume," "expect," "forecast," "intend," "could," or "should" or expressions of a similar kind. Such future-oriented statements are subject to risks and uncertainties since they relate to future events and are based on the company's current assumptions, which may not in the future take place or be fulfilled as expected. The company points out that such future-oriented statements provide no guarantee for the future and that the actual events including the financial position and profitability of NORMA Group SE and developments in the economic and regulatory fundamentals may vary substantially (particularly on the down side) from those explicitly or implicitly assumed in these statements. Even if the actual assets for NORMA Group SE, including its financial position and profitability and the economic and regulatory fundamentals, are in accordance with such future-oriented statements in this press release, no guarantee can be given that this will continue to be the case in the future.
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SOURCE NORMA Group