SAF-HOLLAND S.A. expects 30% sales growth to over $698 million in the current fiscal year, after reaching $532 million in 2009.
The Group benefits from rising demand and its own efficiency improvements. Adjusted EBIT increased substantially to $18.5 million in the first half of the year. In the second quarter adjusted EBIT already doubled compared to the previous quarter, while sales increased by 29.4% from April to June.
"SAF-HOLLAND can look back on a pleasing business development in the first half of 2010,” said Rudi Ludwig, CEO of SAF-HOLLAND. “The second quarter, in particular, gives us a positive outlook for the rest of the year. We notice both the continuously rising demand and the positive effects of cost-saving measures initiated in the past 18 months. As previously communicated, SAF-HOLLAND is benefitting tremendously from the economic upswing and the corresponding increase in demand for transportation services. This trend will continue.”
Overall, sales increased by 34.8% to $365 million in the first half of 2010, adjusted for exchange rate effects to $363 million. All three Business Units improved in the reporting period. European business accounted for 47.2% (previous year: 49.2%), while the Group generated 46.5% of its sales in North America (previous year: 46.1%). The share of other regions slightly increased to 6.3% (previous year: 4.7%).
Thanks to greater capacity utilization and project related Aftermarket sales, the gross margin rose to 19.2% (previous year: 16.2%) in the reporting period.
The Trailer Systems Business Unit achieved the highest sales since the fourth quarter 2008 in the second quarter of 2010. In both Europe and North America, SAF-HOLLAND's sales volume increased. Despite the pleasing sales increase, demand is still significantly below earlier levels. Overall, the segment's sales increased by 52.0% to $172 million in the first half of the year (previous year: $113 million). The gross margin improved to 4.0% (previous year: -3.8%). The share in Group sales rose to 47.3% (previous year: 42.0%).