HUNTER DOUGLAS NINE MONTHS 2018 RESULTS
Rotterdam, November 6, 2018 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for the first nine months 2017:
Sales: USD 2,716.2 million, 15.8% higher,
compared with USD 2,346.5 million in the first nine months of 2017.
The 15.8% sales increase reflects a 6.7% volume increase, 2.1% positive currency impact and 7.0% increase from acquisitions/divestments. Volume increased in all areas.
North America accounted for 48% of sales, Europe 40%, 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 326.9 million, 18.2% higher than USD 276.6 million in the first nine months of 2017.
Income from Operations (before non-recurring expenses):
USD 251.7 million, 25.2% higher than USD 201.0 million in the first nine months of 2017. Results in local currencies were better in North America and Europe, level in Asia and Australia and lower in Latin America.
Non-recurring expenses: USD 10.1 million, compared with USD 12.9 million in 2017. These expenses relate to reorganizations in Europe and Australia.
Profit before Tax: USD 236.9 million, 28.2% higher than USD 184.8 million in the first nine months of 2017.
Total Net Profit: USD 181.7 million (per share EUR 4.38), 25.1% higher than USD 145.2 million in the first nine months of 2017 (per share EUR 3.74).
Capital expenditures were USD 88 million compared with USD 93 million in the first nine months of 2017, while depreciation was USD 59 million compared with USD 61 million in the same period last year. For the full year capital expenditures are expected to be approximately USD 115 million and depreciation USD 80 million.
Operating cash flow: USD 296 million compared with USD 104 million in the first nine months of 2017.
Shareholder’s equity was USD 1,442 million compared with USD 1,385 million at the end of 2017, reflecting the first nine months results offset by negative exchange translation and the payment of the dividend of EUR 1.85 per share, totalling USD 76 million.
RONAE (Return before interest/net assets employed) excluding Metals Trading and Investment Portfolio was 14.2% compared with 14.5% in the first nine months of 2017.
Q3 2018
Q3 Sales: USD 923.6 million, 10.8% higher than USD 833.7 million in the same period of 2017. The increase reflects a 10.1% volume increase, a 0.8% negative currency impact and 1.5% increase from acquisitions/divestments. Third quarter organic sales were higher in all areas.
Q3 Earnings before interest, tax, depreciation and amortization – EBITDA:
USD 115.2 million, 14.3% higher than USD 100.8 million in Q3 2017.
Q3 Income from Operations (before non-recurring expenses): USD 90.7 million, 23.2% higher than USD 73.6 million in Q3 2017. Results in local currencies were better in North America, Europe, Asia and Australia and lower in Latin America.
Q3 Non-recurring expenses: USD 10.1 million, compared with USD 12.9 million in Q3 2017. These expenses relate to reorganizations in Europe and Australia
Q3 Profit before Tax: USD 80.3 million, 40.9% higher than USD 57.0 million in Q3 2017.
Q3 Total Net Profit: USD 59.0 million (per share EUR 1.45), 29.1% higher than USD 45.7 million in Q3 2017 (per share EUR 1.11).
FIRST NINE MONTHS 2018 BY REGION
EUROPE
European sales were USD 1,089 million, 29% higher than USD 843 million in the same period last year. This reflects a 4% volume increase, a 6% positive currency impact and 19% increase from acquisitions. In EUR, sales increased by 21% to EUR 913 million compared with EUR 756 million in 2017.
North America
North American sales increased by 8% to USD 1,293 million. The sales increase reflects a 9% volume increase and 1% decrease from divestments.
Latin America
Latin American sales were USD 117 million, 2% higher than USD 115 million in the same period last year. The sales increase reflects a 8% volume increase and a 6% negative currency impact.
Asia
Asian sales increased by 7% to USD 138 million. The higher sales reflect a volume increase of 5% and a 2% positive currency impact.
Australia
Australian sales were USD 79 million, 18% higher than USD 67 million in the same period last year. The sales increase reflects a 7% volume increase, a 1% negative currency impact and a 12% increase from acquisitions.
Outlook
Hunter Douglas expects continued growth in Europe, the US 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.