Norma Group SE, the engineered joining technology company, has posted record sales and earnings in the first half of 2014.
06 Aug 2014 | 2740 Views | By Autocar Pro News Desk
Norma Group SE, the engineered joining technology company, has posted record sales and earnings in the first half of 2014. Group sales in the first six months of the year grew by 9.4 percent year on year to euro 353.0 million (Rs 2,885 crore). Organic growth in the first half ...
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Norma Group SE, the engineered joining technology company, has posted record sales and earnings in the first half of 2014. Group sales in the first six months of the year grew by 9.4 percent year on year to euro 353.0 million (Rs 2,885 crore). Organic growth in the first half of 2014 amounted to 10.3 percent. Acquisitions contributed 1.8 percent to the strong sales growth while negative currency effects detracted 2.7 percent. Adjusted earnings before interest, taxes and amortisation (EBITA) improved by 12.2 percent year on year to euro 63.1 million between January and June 2014.
“We had a successful first half of 2014 that was in line with our expectations. We could significantly increase sales and earnings,” said Werner Deggim, CEO of Norma Group (pictured above). “The positive development of the business and the strong organic growth of more than 10 percent benefited, among other things, from the much improved macroeconomic environment and new productions subsequent to the introduction of the Euro-6 emissions standard in Europe. From September 2014, the latter will also be mandatory for all newly registered diesel and petrol passenger vehicles. We are confident that we will reach the targets we have set for ourselves in financial year 2014.”
Sales in the EMEA (Europe, Middle East and Africa) region grew by 5.1 percent YoY to euro 210.0 million in the first half of 2014 (H1/2013: euro 199.8 million). Beyond the macroeconomic recovery, the region also benefited from the introduction of the statutory Euro-6 emissions standard and the related step-up in production of new-generation engines.
The Americas region made a positive contribution in the first half of 2014, inter alia on the back of the pronounced economic recovery in the US. Sales improved by 16.0 percent YoY to euro 113.3 million (H1/2013: euro 97.6 million). In April 2014, the Group acquired Five Star Clamps, Inc. in the US to expand its footprint in the country. Five Star Clamps manufactures and distributes joining products for numerous applications across various industries. Furthermore, the Group started production in Brazil in April. The new plant in Atibaia near São Paulo manufactures metal- and plastic-based joining products for the South American market.
The Asia-Pacific region generated sales of euro 29.8 million over the first six months of this financial year, which represented a 17.6 percent increase (H1/2013: euro 25.3 million). In May 2014, the Norma Group's second Chinese plant started producing worm-drive and profile clamps. The new production facility in Changzhou near Shanghai responds to the growing demand for Group products in the Asia-Pacific region.
Overall, the company says the development of the business over the first six months of 2014 is in line with expectations. Group sales in financial year 2014 are expected to grow organically by around 4 to 7 percent compared to 2013. In addition, the Group expects to generate sales of around euro 8 million from acquisitions.
Photograph: Werner Deggim, CEO of Norma Group, at a production facility.