On preliminary unaudited figures, NORMA Group reported second quarter sales of EUR 289 million, 4.6% up on same quarter 2018, but reflected 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%).
Based on these figures NORMA announced it was adjusting its full year 2019 expectations of organic sales growth to between -1% and +1% (previously +1% to 3%). It also adjusted its forecast for adjusted EBITA margin to better than 13% (previously between 15% and 17%) and downgraded its net operating cash flow expectation by €10 million to €90 million.
NORMA said the main reason is a weaker-than-expected market environment in the global automotive business, with worldwide trade disputes and sanctions also having a negative impact. This relates to a reluctance to invest, reflected by a continuingly declining business, particularly in the EMEA and Asia-Pacific regions – with particular market weakness in China and India.
NORMA does not foresee a revival in the second half of 2019. ERP development costs in Latin America are expected to negatively affect results.
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.