HUNTER DOUGLAS NINE MONTHS 2016 RESULTS


HUNTER DOUGLAS NINE MONTHS 2016 RESULTS

Rotterdam, November 2, 2016 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for the first nine months 2016:

  • Sales: USD 2,061.6 million, 7.9% higher compared with USD 1,910.8 million in the first nine months of 2015. The 7.9% sales increase reflects a 3.6% volume increase, 2.5% negative currency impact and 6.8% increase from acquisitions. Volume increased in all areas except in Latin America and Australia where sales were about level. North America accounted for 50% of sales, Europe 35%, Latin America 6%, Asia 6% and Australia 3%. Window Coverings were 84% and Architectural and Other Products were 16% of sales.
  • Earnings before interest, tax, depreciation and amortization – EBITDA: USD 254.4 million, 17.6% higher than USD 216.4 million in the first nine months of 2015.
  • Income from Operations (before non-recurring expenses): USD 195.3 million, 25.3% higher than USD 155.9 million in the first nine months of 2015. Results in local currencies were better in all areas, except in Latin America and Australia where they were lower.
  • Non-recurring expenses: USD 5.9 million, compared with nil in 2015. These expenses relate to acquisition costs.
  • Profit before Tax (excluding Net Result Investment Portfolio): USD 182.0 million, 25.9% higher than USD 144.6 million in the first nine months of 2015.
  • Net Result Investment Portfolio: USD 1.7 million negative (after deduction of imputed interest and expenses) compared with USD 7.3 million negative in the first nine months of 2015. The Portfolio’s return in U.S. dollars (before imputed interest and expenses) was 0.7% positive. The Portfolio had a fair value at September 30, 2016 of USD 203 million compared with USD 202 million at December 31, 2015. The Portfolio is being reduced to approximately USD 100 million.
  • Profit before Tax: USD 180.3 million, 31.3% higher than USD 137.3 million in the first nine months of 2015.
  • Total Net Profit: USD 142.3 million (per  share EUR 3.68), 31.4% higher than USD 108.3 million in the first nine months of 2015 (per share  EUR 2.78).

Capital expenditures were USD 54 million compared with USD 42 million in the first nine months of 2015, while depreciation was USD 53 million compared with USD 55 million in the same period last year. For the full year capital expenditures are expected to be approximately USD 65 million and depreciation USD 70 million.

Acquisitions:
Julius Koch: A U.S. manufacturer of cords and tapes for window coverings with 2015 sales of USD 8 million (October 1, 2016).

Operating cash flow: USD 62 million compared with USD 118 million in the first nine months of 2015.

Shareholder’s equity was USD 1,135 million compared with USD 1,065 million at the end of 2015, reflecting the first nine months results offset by negative exchange translation and the payment of the dividend of EUR 1.50, totalling USD 59 million.

RONAE (Return before interest/net assets employed) excluding Metals Trading and Investment Portfolio was 17.9% compared with 15.6% in the first nine months of 2015.

Q3 2016

Q3 Sales: USD 755.3 million, 16.1% higher than USD 650.7 million in the same period of 2015. The increase reflects a 1.2% volume increase, a 1.3% negative currency impact and 16.2% increase from acquisitions. Third quarter organic sales were higher in Europe and North America, level in Asia and lower in Latin America and Australia.

Q3 Earnings before interest, tax, depreciation and amortization – EBITDA: 
USD 100.4 million, 36.4% higher than USD 76.3 million in Q3 2015.

Q3 Income from Operations (before non-recurring expenses): USD 81.1 million, 36.3% higher than USD 59.5 million in Q3 2015. Results in local currencies were better in all areas, except in Latin America and Australia where they were lower.

Q3 Non-recurring expenses: USD 5.9 million, compared with nil in Q3 2015. These expenses relate to acquisition costs.

Q3 Net Result Investment Portfolio: USD 5.6 million positive (after deduction of imputed interest and expenses) compared with USD 12.9 million negative in Q3 2015.

Q3 Profit before Tax: USD 76.8 million, 74.9% higher than USD 43.9 million in Q3 2015.

Q3 Total Net Profit: USD 58.6 million (per share EUR 1.51), 89.6% higher than USD 30.9 million in Q3 2015 (per share EUR 0.80).

First nine months 2016 by Region

Europe

European sales were USD 724 million, 7% higher than USD 678 million in the same period last year. This reflects a 1% volume increase, a 3% negative currency impact and 9% increase from acquisitions. In EUR, sales increased by 8% to EUR 652 million compared with EUR 606 million in 2015.

North America

North American sales increased by 13% to USD 1,027 million. The sales increase reflects a 6% volume increase, a 1% negative currency impact and 8% increase from acquisitions.

Latin America

Latin American sales were USD 117 million, 13% lower than USD 135 million in the same period last year. The sales decrease reflects level volume and a 13% negative currency impact.

Asia

Asian sales increased by 4% to USD 135 million. The higher sales reflect a volume increase of 6% and a 2% negative currency impact.

Australia

Australian sales were USD 59 million, 3% lower than USD 61 million in the same period last year. The sales decrease reflects a 1% volume decrease and a 2% negative currency impact.

Outlook 

Hunter Douglas expects continued growth in the US and Asia, stable economic conditions in Europe and continued difficult conditions in Latin America.

Hunter Douglas is in a strong position in terms of its products, distribution, finances and management.

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 130 companies with 50 manufacturing and 80 assembly operations in more than 100 countries. Hunter Douglas employs about 19,000 people, and had sales in 2015 of USD 2.552 billion.

The common shares of Hunter Douglas N.V. are traded on Amsterdam’s Euronext and Deutsche Boerse.

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 first nine months and Q3 (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the first nine months and Q3 (Annex 5) are attached.

 
 
 
 

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