SAF-Holland Reports Positive 3Q Results

While SAF-Holland is still lagging behind the third quarter of 2008 in terms of sales and profitability, the parts supplier managed to improve its third quarter performance from the second quarter.

The company saw its earnings before tax and interest return to positive territory at $3.7 million. In the second quarter, the company's EBIT swung to a loss of $1.2 million. The third quarter of 2008 saw earnings at $13.3 million.

Meanwhile, the Luxembourg-based company posted sales of $153.7 million in the third quarter, down from the 2008 quarter's $280.6 million. Gross profit for the quarter was $27.9 million, compared with $42 million for the third quarter of 2008.

The company attributes the improvement over the second quarter to the stabilization in sales and signs of growth within the commercial vehicle market.

"SAF-Holland is benefiting from the group-wide restructuring of the operating business. We are now leaner and stronger," said Dr. Reiner Beutel, CEO. "As a global supplier of quality systems and components for the commercial vehicle industry, we are thus perfectly positioned to participate in a major way in the expected upturn in the commercial vehicle market. We are already seeing the first signs of a recovery after an unprecedented downturn in the global commercial vehicle market."

The company expects to announce a new financial agreement with its lender in the near term, in an effort to strengthen its financial health and create financial flexibility so the company can complete its operational restructuring.