Sales at NORMA Group increased 6.6% to €1.084 billion (US$1.22 billion) in 2018, Fastener+Fixing Magazine reports. Organic sales grew 7.7%, but currency effects reduced sales growth by 2.8%. Adjusted EBITA margin fell to 16% from previous year readings above 17%.

“Strong sales growth in Engineered Joining Technology (EJT) in the Americas and Asia-Pacific regions contributed to the increase, driven by good order volumes in the US commercial vehicle and agricultural machinery markets, as well as in the Chinese automotive industry.” 

The Distribution Services (DS) division also showed solid growth, particularly due to the positive development of NDS’s water business and the acquisitions of Fengfan and Kimplas, the latter contributing 1.6% to growth. 

“2018 was a challenging but successful year for NORMA Group,” said CEO Bernd Kleinhens. “Although the tense situation on the raw material markets had an impact on earnings and margins, our strong organic growth shows that our products are increasingly in demand worldwide.”

NORMA sales in the fourth quarter gained 5.3% to €267 million. As expected, organic growth declined at the end of 2018, to 1.7%. Acquisitions contributed 2.4% and positive currency effects 1.2% to group sales growth in the quarter.

Adjusted EBITA decreased 0.8% year-on-year to €173.2 million Adjusted EBITA margin was 16.0% (2017: 17.2%), “with the difficult situation on the international raw material markets the main reason for the decline,” according to Fastener+Fixing. NORMA identified higher alloy surcharges, changes in important plastic components and punitive U.S. steel tariffs having a negative impact. Increasing shortage of materials and the strong sales growth temporarily led to variable special costs in purchasing, production and logistics. Web: NORMAGroup.com