Norma Group, a German machine-part manufacturer, has announced an increase in revenue and adjusted earnings for the second quarter. This growth can be attributed to higher demand from the automotive industry and effective price management, which offset a decrease in demand in the water-management sector.
For the second quarter, Norma Group achieved an aftertax profit of EUR 10.6 million, compared to EUR10 million in the same period last year. Meanwhile, revenue rose by 1.9% to EUR324 million. This growth was driven by increased demand in the Europe, Middle East, and Africa (EMEA) as well as the Asia-Pacific regions. However, there was a decline in the Americas due to unfavorable currency effects and strong figures from the previous year.
Furthermore, adjusted earnings before interest and taxes (EBIT) experienced a significant increase, reaching EUR27.1 million compared to EUR22.3 million. The company also achieved a higher margin of 8.4%, up from 7%.
Despite acknowledging the challenging business environment in the second half of the year, Norma Group remains optimistic. They expect organic sales to grow in the mid-single-digit range for 2023 and anticipate maintaining an adjusted EBIT margin of around 8%.