DGAP-Adhoc: SAF-HOLLAND S.A.: SAF-HOLLAND firms up its earnings forecast for the 2019 financial year

SAF-HOLLAND firms up its earnings forecast for the 2019 financial year
 

- Adjusted EBIT margin around the midpoint of the range of 7 to 8% and below the adjusted EBIT margin of at least 8% originally forecast for 2019
 

- Mid-term targets for sales and adjusted EBIT margin under Strategy 2020 confirmed
 

- Sales expected to grow in the range of 4 to 5% in 2019
 

Luxembourg, February 20, 2019 - The supplier to the trailer, truck and bus industries, SAF-HOLLAND S.A. ("SAF-HOLLAND"), today announced preliminary unaudited figures for the 2018 financial year. The Company today also announced that it had firmed up its forecast for the 2019 financial year. Due to numerous political and economic uncertainties, SAF-HOLLAND's Group Management Board expects the market environment in 2019 to be more challenging than in 2018. The Group Management Board also does not expect the reduction in production inefficiencies at the North American plant network to take place as quickly as planned. Therefore, from today's perspective, the Group's adjusted EBIT margin is expected to be around the midpoint of the range of 7 to 8%. This compares with the forecasted 2019 adjusted EBIT margin during the reporting year of at least 8% and the current market expectation of 8.0%.
 

Based on its strong position in structurally growing market segments, the Group still expects to be able to further increase its sales in the current year and to achieve sales growth of 4 to 5% in the 2019 financial year.
 

With respect to Strategy 2020, the SAF-HOLLAND Group Management Board confirms its medium-term targets for sales and adjusted EBIT margin. Due to a higher investment volume, the investment ratio is anticipated to rise from 2.5% to a range of 4% to 5% of sales. Taking into consideration the companies acquired and expected sales growth, the net working capital ratio should amount to 13%, compared to the originally forecast of 12%. After an expected transitional year in 2019, the Group's adjusted EBIT margin should once again reach at least 8% in the 2020 financial year.