Joining technology and fluid handling system specialist NORMA has launched a “Get on Track” programme while revealing an increase in sales by 2.6% to €838.6 million in the first nine months of the year (Q1-Q3 2018: €817.1 million).
Organic sales, however, declined 1.6% in the same period, while currency effects delivered 2.6% (€21.1 million) to sales growth.
Drilling down to the Q3 stats, that trend continued, with sales growth of 2.2% (to €274 million) while organic sales declined 0.1%.
“Tense automotive market”
Member of the Management Board Michael Schneider noted: “The tense situation on the global automobile market still poses a challenge for us. The positive development of our water management division, however, underscores the fact that NORMA Group is in a stable and sustainable position thanks to its broad range of products and services and its strategic focus on the future markets of water management and electromobility.”
Transformation programme: “Get on track”
NORMA launched a transformation programme on Guy Fawkes night (5 November) to “position itself more efficiently in today’s volatile times”. The programme will optimise capacities at its locations worldwide, streamline product portfolio and purchasing improvements will also be made. NORMA plans for the “Get on track” programme to gather sustained cost savings from 2020. From 2030, NORMA expects to achieve annual savings of €40-45 million, while total costs to implement the measures will be circa €45-50 million.
EMEA sales in the nine months fell 0.9%, with lower production and sales figures in automotive. The Americas saw sales rise 5.4% (€352.2 million) and sales were also up in Asia-Pacific region, by 6.6% to €114.2 million).