Equipment specialist, SAF-Holland SE, recently published preliminary financial figures for FY2022.
As a result of the continued solid production figures for trucks and especially trailers in the core markets of North America and Europe and the above-market sales performance of SAF-Holland products, Group sales in the fourth quarter of 2022 increased by 21.0 per cent to €389.5 million (previous year: €321.8 million). Adjusted for exchange rate and acquisition effects, organic growth was strong at 13.0 per cent.
For full-year 2022, SAF-Holland was able to expand Group sales by 25.6 per cent (organic: 17.9 per cent) to a new record level of €1,565.1 million (previous year: €1,246.6 million). This resulted in Group sales exceeding the forecast, which had already been raised several times during the year, with the latest sales forecast around the upper end of the range of €1.4 billion to €1.5 billion.
Strong growth in the Americas (+47.0 per cent) and APAC (+44.5 per cent) regions was the main contributor to the Group’s performance. As the regional market leader in the increasingly important Indian transport market, the company benefitted from the ongoing government expansion program for transport infrastructure, as well as from the more demanding regulatory requirements for braking systems for trucks and trailers.
In the EMEA region, the Group achieved sales growth of 11.0 per cent, despite the particularly challenging macroeconomic and supply chain situations in the 2022 financial year.
The Original Equipment (OE) business benefitted from both market share gains and catch-up effects in customer demand following the restrained investment of fleet operators and carriers during the Covid-19 pandemic and supply chain issues.
OE business with the truck and trailer manufacturers grew 27.6 per cent in 2022. The Group generated €1,144.0 million (previous year: €896.8 million) in sales in this customer segment.
In the cyclically resilient spare parts business, sales also rose sharply, supported by the growing population of SAF-Holland axle and suspension systems in the market.
At €421.1 million (previous year: €349.8 million), the Aftermarket business contributed 20.4 per cent more to Group sales than in the previous year. The integration of the Swedish braking systems specialist Haldex AB, which generates around half of its business in the aftermarket, will significantly increase the share of this business in the sales of the combined Company.
“Despite a thoroughly challenging environment, we were able to significantly exceed the targets we set ourselves for 2022,” said SAF-Holland CEO, Alexander Geis.
“With our product offering, we benefitted to an extraordinary extent from the solid demand from truck and trailer manufacturers and gained market share.
“Internally, we have further optimised our processes, reduced costs and positioned ourselves technologically for the future through our acquisition of Haldex. We expect the transaction to close in the coming weeks.”
Adjusted EBIT margin rises to 8.0 per cent.
The company passed on the sharp rise in steel, freight and energy costs either through price adjustments or by offsetting them through standardisation and better efficiency in production-related areas, supplemented by cost savings in administrative functions.
As a result, adjusted EBIT increased 33.8 per cent, outpacing Group sales growth in percentage terms, and amounted to €124.6 million (previous year: €93.1 million). The adjusted EBIT margin, also supported by a favourable product mix, reached 8.0 per cent, compared to 7.5 per cent in the previous year, placing it at the upper end of the target range of 7.0 per cent to 8.0 per cent, reflecting the most recent upward revision in July 2022.
Among the segments, the development in the APAC region stood out in particular, driven by the strong sales performance in India and Australia and successful cost reductions in the China business, which does not yet contribute to profits. The adjusted EBIT margin in the APAC region improved overall to 10.1 per cent (previous year: 1.7 per cent).
Result before income tax rises more rapidly than sales.
The finance result reflects the increase in interest rates and the higher finance expenses resulting from the financing of the Haldex shares acquisition and amounted to €–13.0 million, compared to €–9.5 million in the previous financial year. The result before income tax increased by 41.2 per cent to €88.5 million (previous year: €62.7 million).
SAF-Holland will publish the full audited consolidated figures for the 2022 financial year and its forecast for the 2023 financial year on 30 March 2023.
In other news, power regeneration via recuperation is possible with the SAF TRAKr axle jointly developed by SAF-Holland and Carrier Transicold.