HUNTER DOUGLAS RESULTS 2018
HUNTER DOUGLAS RESULTS 2018
Rotterdam, March 14, 2019 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for 2018:
- Sales: 12.7% higher to USD 3,633.9 million, compared with USD 3,225.8 million in 2017.
The 12.7% sales increase reflects a 6.1% volume increase, 0.9% positive currency impact and 5.7% increase from acquisitions/divestments. Volume increased in all areas.
North America accounted for 47% of sales, Europe 41%, Latin America 4%, Asia 5% and Australia 3%. Window coverings were 86% and Architectural and Other products were 14% of sales. - Earnings before interest, tax, depreciation and amortization - EBITDA: USD 465.3 million, 19.4% higher than USD 389.8 million in 2017.
- Income from Operations (before non-recurring income/expenses): 23.5% higher to USD 355.7 million, compared with USD 287.9 million in 2017. Results in local currencies were better in all areas, except in Latin America where they were lower.
- Non-recurring income/expenses: USD 22.5 million positive, compared with USD 19.8 million negative in 2017. This relates to gains on the divestments of the US Ceilings’ business and Nedal, the Netherlands, offset by the impairment of certain goodwill and reorganization expenses in Europe and Australia.
- Profit before Tax: USD 370.3 million, compared with USD 259.6 million in 2017.
- Total Net Profit: USD 268.9 million (per share EUR 6.55), 23.1% higher than USD 218.5 million in 2017 (per share EUR 5.56).
Capital expenditures were USD 122 million, compared with USD 130 million in 2017, while depreciation was USD 91 million, compared with USD 82 million in 2017.
In 2019 capital expenditures will be about USD 125 million and depreciation USD 90 million.
Operating cash flow: USD 406 million, compared with USD 181 million in 2017.
Shareholders’ equity was USD 1,515 million, compared with USD 1,384 million at the end of 2017. The 2018 equity was impacted by the payment of the dividend of EUR 1.85 per share, totalling USD 76 million.
Financing: All borrowings are covered by committed long term facilities.
RONAE (Return before interest on Net Assets Employed) excluding non-recurring income/expenses: 14.7% compared with 13.7% in 2017.
Return on Equity: 18.5% compared with 16.6% in 2017.
Employees: The company had approximately 23,500 employees at the end of 2018.
Dividend: The Board of Directors proposes a dividend for 2018 of EUR 2.00 per common share, compared with EUR 1.85 for 2017.
Q4 2018
Q4 Sales were USD 917.7 million, 4.4% higher than USD 879.3 million in the same period of 2017. This reflects a 4.4% volume increase, a 2.2% negative currency impact and 2.2% increase from acquisitions/divestments. Fourth quarter organic sales were higher in all areas.
Q4 Earnings before interest, tax, depreciation and amortization – EBITDA:
USD 138.4 million, 22.3% higher than USD 113.2 million in Q4 2017.
Q4 Income from Operations (before non-recurring income/expenses):
USD 104.0 million, 19.7% higher than USD 86.9 million in Q4 2017. Results in local currencies were better in all areas, except in Latin America where they were lower.
Q4 Non-recurring income/expenses: USD 32.6 million positive, compared with
USD 6.9 million negative last year. This relates to gains on the divestments of the US Ceilings’ business and Nedal, the Netherlands, offset by the impairment of certain goodwill and reorganization expenses in Europe and Australia.
Q4 Profit before Tax: USD 133.4 million, compared with USD 74.8 million in Q4 2017.
Q4 Total Net Profit: USD 87.2 million (per share EUR 2.17), 19.0% higher than
USD 73.3 million in Q4 2017 (per share EUR 1.82).
Total year 2018 by Region
Europe
European operations had record sales and profits.
European sales were USD 1,486 million, 22% higher than USD 1,214 million last year. This reflects a 4% volume increase, a 3% positive currency impact and a 15% increase from acquisitions.
North America
North American operations had higher sales and profits.
Sales increased by 7% to USD 1,698 million. The sales increase reflects a 8% increase in volume and a 1% decrease from divestments.
Latin America
Latin American operations had flat sales and lower profits.
Sales were USD 161 million, 1% lower than last year. This reflects a 7% volume increase and a 8% negative currency impact.
Asia
Asian operations had higher sales and profits.
Sales were USD 180 million, 8% higher than USD 167 million last year, due to a 7% increase in volume and a 1% positive currency impact.
Australia
Australian operations had higher sales and profits.
Sales were USD 109 million, 15% higher than USD 95 million last year, due to a 6% increase in volume, a 2% negative currency impact and a 11% increase from acquisitions.
Outlook
Hunter Douglas expects continued but slower growth in the US, Europe and Asia, and improving economic conditions in Latin America.
Hunter Douglas is in a strong position in terms of its brands, products, distribution and finances.
Profile Hunter Douglas
Hunter Douglas is the world market leader in window coverings and a major manufacturer of architectural products. The Company has its Head Office in Rotterdam, the Netherlands, and a Management Office in Lucerne, Switzerland. The Group is comprised of 133 companies with 47 manufacturing and 86 assembly operations in more than 100 countries.
The common shares of Hunter Douglas N.V. are traded on Amsterdam’s Euronext and the Frankfurter Börse.
For further information:
Leen Reijtenbagh
Chief Financial Officer
Tel. +31 10 486 9582
E-mail : l.reijtenbagh@hdnv.nl
Website: www.hunterdouglasgroup.com
A consolidated Statement of Income for the full year 2018 and Q4 2018 (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic area for the full year 2018 and Q4 2018 (Annex 5) are attached.
