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NORMA Group achieves growth in the first nine months of 2016

· Sales rose by 1.0 percent to EUR 679.4 million in the first nine months of 2016
· Adjusted EBITA increased by 1.6 percent to EUR 122.6 million
· Adjusted EBITA margin of 18.0 percent at a sustainably high level
· Forecast for fiscal year 2016 at Group level confirmed

Maintal, Germany, November 2, 2016 – NORMA Group, a global market leader in engineered joining technology, grew in terms of both sales and earnings during the period January to September 2016. Sales were 1.0 percent higher at EUR 679.4 million compared to the first nine months of 2015 (Q1-Q3 2015: EUR 672.6 million). Organic growth of 1.9 percent was achieved, but was reduced by 0.9 percent due to negative currency effects. Adjusted earnings before interest, taxes and amortization of intangible assets (adjusted EBITA) increased by 1.6 percent to EUR 122.6 million (Q1-Q3 2015: EUR 120.6 million). The adjusted EBITA margin was at a sustainably high level of 18.0 percent (Q1-Q3 2015: 17.9 percent).

“Overall, we are pleased with our development in the first nine months of 2016," said Werner Deggim, CEO of NORMA Group. “The sales increase was supported by good growth in the EMEA region. Sales in the Americas region declined, however, due to the increasingly weaker environment in the commercial vehicle and agricultural machinery sectors in the US. All in all, we confirm our forecast for the full fiscal year 2016 at the Group level.”

Group sales declined slightly by 0.7 percent in the third quarter of 2016 to EUR 216.6 million compared to the same period of the previous year (Q3 2015: EUR 218.3 million). Adjusted EBITA also declined slightly by 1.5 percent to EUR 38.7 million (Q3 2015: EUR 39.3 million). At 17.9 percent, the adjusted EBITA margin remained at the previous year’s level (Q3 2015: 18.0 percent).

Strong growth in the EMEA region

Sales in the EMEA (Europe, Middle East and Africa) region rose significantly by 5.7 percent to EUR 332.2 million in the first nine months of 2016 compared to the same period of the previous year (Q1-Q3 2015: EUR 314.4 million). The positive development in the region is due to the good development of the company’s business in the area of Engineered Joining Technology (EJT).

Sales in the Americas region were 4.0 percent lower from January to September 2016 compared to the previous year at EUR 290.8 million (Q1-Q3 2015: EUR 303.1 million). The increasingly weak environment in the area of commercial vehicles and agricultural machinery was mainly responsible for this decline.

In the Asia-Pacific region, sales in the first nine months of 2016 rose by 2.4 percent compared to the same period of the previous year to EUR 56.4 million (Q1-Q3 2015: EUR 55.0 million). The region thus achieved solid growth despite negative currency effects.

Completion of the acquisition of Parker Autoline expected by the end of 2016

As of September 30, 2016, Group equity rose by 5.0 percent to EUR 451.4 million compared to the end of 2015 (December 31, 2015: EUR 429.8 million). The equity ratio was influenced by the payment of the dividend as well as the extension of the balance sheet due to the issuance of a promissory note at the end of the third quarter of 2016. It was at 35.2 percent on September 30, 2016, (December 31, 2015: 36.8 percent). NORMA Group issued a promissory note in the amount of EUR 150 million on August 1, 2016, in order to extend the scope for the continued strategic development of the Group and finance its planned acquisition of Parker Autoline. The transaction is expected to be completed by the end of 2016. Net debt, including hedging instruments, decreased by 7.1 percent to EUR 335.1 million (December 31, 2015: EUR 360.9 million) as of the reporting date, September 30, 2016, compared to the end of the previous year. The good operating cash flow had a positive effect on this.

As of September 30, 2016, the number of employees increased by 132 to 6,438 worldwide, including temporary workers, compared to the end of 2015 (December 31, 2015: 6,306 employees). This increase was mainly due to the increase in business activities in Europe.

Outlook for 2016 confirmed at Group level

NORMA Group confirms its forecast for fiscal year 2016 at the Group level. The company expects Group sales to grow by a solid 2 to 5 percent in 2016 compared to 2015. In fiscal year 2016, NORMA Group aims to achieve a sustained adjusted EBITA margin at the level of previous years of more than 17 percent (2015: 17.6 percent, 2014: 17.5 percent, 2013: 17.7 percent).

NORMA Group in figures


The full report on the third quarter of 2016 can be obtained at www.normagroup.com/Finanzberichte. For further information, please contact Investor Relations www.normagroup.com/IR.

Other dates
Publication of the preliminary figures for fiscal year 2016 is scheduled for February 15, 2017.

NORMA Group achieves growth in the first nine months of 2016.pdf