DGAP-Adhoc: NORMA Group SE: Adjustment of full year guidance for 2019 NORMA Group SE:
DGAP-Ad-hoc: NORMA Group SE / Key word(s): Change in Forecast/Change in Forecast
Maintal, July 19, 2019 - NORMA Group SE (ISIN DE 000A1H8BV3 / WKN A1H8BV, 'NORMA Group'), a global market leader in engineered joining and fluid-handling technology, adjusts on the basis of expected development of results for the full year 2019 and based on the figures for the second quarter of 2019 its forecast for organic sales growth, the adjusted EBITA margin and the net operating cash flow.
According to the current state of knowledge, the Management Board of NORMA Group SE expects that the Group will reach an organic sales growth in the range of around -1% until around 1% in the full year 2019 (previously: 1% until 3%). Furthermore, the Management Board expects an adjusted EBITA margin of more than 13%* for the full year 2019 (previous forecast: at the lower end in the range of between 15% and 17%) and a net operating cash flow of EUR 90 million* (previously: EUR 100 million).
The main reason for this is a weaker-than-expected market environment in the global automotive business. Moreover, the worldwide trade disputes and sanctions have a negative impact. This relates to a reluctance to invest, which is reflected by a continuingly declining business, particularly in the EMEA and Asia-Pacific regions. This applies, in particular, to a market weakness in China and India. From today's point of view, it is not foreseeable that there will be a revival in the second half of 2019. In addition, costs related to the introduction of an ERP system at a location in Latin America negatively impact Group results.
On the basis of preliminary, unaudited figures, NORMA Group achieved sales of EUR 289.0 million in the second quarter of 2019. This corresponds to a sales growth of 4.6% compared to the same quarter of the previous year (Q2 2018: EUR 276.4 million), including a decline in organic sales of 0.4%. Revenues from acquisitions contributed 2.4% to growth. Currency effects had a positive impact of 2.5%.
In the second quarter of 2019, the adjusted EBITA margin was at 14.2% (Q2:2018:15.2%). Net operating cash flow amounted to EUR 28.8 million (Q2 2018: EUR 30.2 million).
Vice President Investor Relations
Phone: +49 (0)6181 - 6102 741
Information and Explanation of the Issuer to this News:
End of Ad hoc disclosure:
NORMA Group adjusts certain expenses for the operational management of the Company. In the second quarter of 2019, expenses of EUR 10.9 million were adjusted within EBITA. These relate to expenses resulting from the rightsizing project initiated in the fourth quarter of 2018 as well as to acquisition costs. In addition to the adjustments described above, depreciation on property, plant and equipment from purchase price allocations were shown as adjusted within EBITA.
* Changes in key figures resulting from the first-time adoption of IFRS 16 are not taken into account in the forecast.
NORMA Group will publish its final figures for the second quarter of 2019 on August 6, 2019. At 2.00 p.m., the Management Board will be available for questions during a conference call.
19-Jul-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||NORMA Group SE|
|Phone:||+49 6181 6102 741|
|Fax:||+49 6181 6102 7641|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||843861|
|End of Announcement||DGAP News Service|
843861 19-Jul-2019 CET/CEST