DGAP-News: SHW AG achieves record quarterly sales and earnings figures
(firmenpresse) - DGAP-News: SHW AG / Key word(s): Quarter Results/Preliminary Results
SHW AG achieves record quarterly sales and earnings figures
21.10.2013 / 07:01
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PRESS RELEASE
SHW AG achieves record quarterly sales and earnings figures
- Group sales [1] up by 12.7 percent to EUR 92.6 million
- At 12.0 percent, Group EBITDA remains at a constant high level
Aalen, 21 October 2013. Today, SHW AG, one of the leading automotive
suppliers of CO2-relevant pumps and engine components, as well as brake
discs, published its preliminary financial figures for the third quarter
and first nine months of 2013.
In the third quarter, as a result of its broad product portfolio of highly
efficient components for engines and gearbox applications, the company was
able to seamlessly tie in with the successful previous quarter, and
achieved record sales and earnings figures.
Group sales were up by 12.7 percent from EUR 82.1 million to EUR 92.6
million. This increase was mainly the result of a recently launched
oil/vacuum pump for a well-known European automotive manufacturer, the ramp
up of electric transmission oil pumps for start-stop, as well as high end
composite brake discs.
At EUR 11.1 million, group earnings before interest, tax and depreciation
of fixed assets and amortisation of intangible assets (adjusted EBITDA)
were 27.1 percent higher for the period July to September 2013 than the
comparable amount of EUR 8.7 million in the previous year. The adjusted
EBITDA margin of 12.0 percent was on par with the high level of the
previous quarter.
'These very pleasing Q3 figures are the result of our strict focus on
CO2-relevant vehicle components', stated Dr Thomas Buchholz, CEO of SHW AG
and responsible for the Pumps and Engine Components business segment. 'Our
innovative product and process solutions, as well as the strict
implementation of our internationalisation strategy provide a sound basis
for further profitable growth over the next few years.'
Pumps and Engine Components: significant rise in the EBITDA margin to 13.6
percent
Sales in the Pumps and Engine Components business segment were up by 16.5
percent to EUR 69.9 million in the third quarter of 2013 (previous year:
EUR 60.0 million). The Passenger Car division benefited from high demand
for variable oil pumps and electrical gearbox oil pumps and achieved a 20.0
percent rise in sales to EUR 56.3 million (previous year: EUR 46.9
million). The increase in demand from manufacturers of construction and
agricultural vehicles led to a 7.3 percent increase in sales in the Truck&Off-Highway division, amounting to EUR 6.7 million (previous year: EUR 6.3
million).
The Pumps and Engine Components business segment achieved record segment
earnings before interest, tax, depreciation and amortisation (adjusted
EBITDA) of EUR 9.5 million (previous year: EUR 7.7 million) in the third
quarter of 2013. The EBITDA margin of 13.6 clearly exceeded last year's
figure of 12.8 percent.
Brake Discs: EBITDA margin up from 5.6 percent to 8.7 percent
Sales in the Brake Discs business segment rose by 2.6 percent in the third
quarter of 2013 compared to the same period in the previous year to EUR
22.7 million (2012: EUR 22.1 million) as a result of a significant increase
in sales of composite brake discs.
In the third quarter of 2013, the number of composite brake discs sold rose
by 27.8 percent to approximately 60,700 (previous year: 47,500 units).
Sales figures for monobloc brake discs were slightly up by 2.8 percent to
896,500 units (previous year: 871,300 units). The total number of brake
discs sold rose by 4.1 percent to 957,200 units.
A combination of factors, ranging from an improved product mix towards high
end composite brake discs, increased productivity and also lower quality
control costs led to a rise in segment earnings before interest, tax,
depreciation and amortisation (adjusted EBITDA) in the third quarter of
2013 of 58.4 percent, from EUR 1.2 million to EUR 2.0 million. The EBITDA
margin was up from 5.6 percent to 8.7 percent.
'The technical concept behind SHW's composite brake disc continues to
penetrate the market successfully', stated Andreas Rydzewski, Member of the
Management Board and responsible for the Brake Discs business segment.
Indeed, SHW recently concluded an initial contract with a well-known North
American automobile manufacturer.
Result for first nine months tops previous year
Group sales were up by 6.3 percent to EUR 269.0 million for the first nine
months of 2013, compared to EUR 253.1 million for the same period in the
previous year thanks to the very pleasing results attained in the third
quarter. The adjusted EBITDA is EUR 28.6 million, which corresponds to a
rise of 3.3 percent. The main reason for this slightly disproportionate
increase in earnings stems from the weaker first quarter and includes
adverse effects caused by temporary performance losses (SAP launch related
operating costs for consultants, special shipments and external processing
orders), higher start-up costs and stock-related impairments.
Again positive free cash flow in spite of high investments
SHW achieved a cash flow from operating activities in the third quarter of
2013 amounting to EUR 10.4 million, meaning that it was on track with the
pleasing result of EUR 11.2 million attained in the previous quarter. Cash
flow from investment activities increased - particularly in conjunction
with numerous new product launches in the Pumps and Engine Components
business segment - by 124.9 percent to EUR -9.2 million in the period from
July to September 2013 (previous year: EUR -4.1 million). This means a
positive free cash flow of EUR 1.2 million has been achieved in spite of
extensive investments undertaken in growth. 'We will continue working hard
to reduce our working capital', stated Sascha Rosengart, CFO at SHW AG.
'Our mid-term objective is to lower working capital to 11 percent of
sales'.
Further reinforcement of management team
SHW continued to reinforce its management team in the Pumps and Engine
Components business segment during the third quarter of 2013. Mr Peter
Müller took over the position as Head of Logistics for the Passenger Car
division on 16 September, coming from Roman Mayer Logistik Group. On the
same day Dr Henrik Brehler joined SHW as Head of Development of the
Passenger Car Division from Hilite Germany GmbH, a leading global
automotive supplier for engine and gearbox applications.
Initial milestone of North American strategy realized
Based on the approval of the Supervisory Board SHW recently started
implementing the first milestone in its North American strategy by the
formation of a sales and development company in Canada. The chosen site
guarantees the closest possible proximity to the three major US automobile
manufacturers and timely start of the market development. Mr Peter Krug
will take up the position as General Manager from the beginning of
November. He was most recently employed as Vice President in der Fluid,
Pressure and Controls Group of Magna Powertrain (MPT). Between 2000 and
2008 Mr Krug was the General Manager for the Canadian pump manufacturers
STT Technologies Inc., in which SHW held a 50 percent stake until the end
of October 2012. 'We're delighted to have such an experienced pump
specialist as Peter Krug on board with proven success in the development
and expansion of the North American market ', emphasised Dr Thomas
Buchholz.
Continued pleasing development of incoming orders will ensure a buoyant
final quarter
Development in order intake remained very positive. At Group level, the
company was able to record a rise in order intake of 20.9 percent to EUR
90.3 million for the third quarter of the year, with orders for the Pumps
and Engine Components business segment rising by 19.8 percent to EUR 65.1
million and the Brake Discs business segment recording an increase of 23.7
percent to EUR 25.2 million. As a result of the above as well as assuming
that customer orders remain stable, SHW expects a strong fourth quarter
2013. The company anticipates sales of between EUR 62 million to EUR 70
million for the Pumps and Engine Components business segment. The Brake
Discs business segment is likely to achieve sales of around EUR 21 million
to 23 million.
Outlook specified
Overall, SHW AG now expects Group sales in fiscal year 2013 to lie within
the region of between EUR 352 million to EUR 362 million (previously: EUR
330 million to EUR 345 million), with sales in the Pump and Engine
Components business segment accounting for between EUR 264 million to EUR
272 million (previously: EUR 240 million to EUR 255 million) and EUR 88
million to EUR 90 million for the Brake Discs business segment.
Based on figures for the first nine months of the year, SHW is now
expecting that Group earnings before interest, tax, depreciation and
amortisation (adjusted EBITDA) for fiscal year 2013 to be around EUR 35
million to EUR 38 million and is thus likely to top last year's figure of
EUR 33.9 million.
[1] STT Technologies Inc., which had been included in the consolidation on
a pro-rata basis until the end of October 2012, has now, further to its
sale, been classified as a 'discontinued operation' in accordance with IFRS
5. Sales, expenditure and earnings for the third quarter and the first nine
months of 2012 were adjusted accordingly.
About SHW
The enterprise was established in 1365, making it one of the oldest
industrial enterprises in Germany. Today, SHW AG is a leading automotive
supplier with products that contribute substantially to a reduction of fuel
consumption and consequently CO2 emissions. In its Pumps and Engine
Components business segment, the SHW Group develops and produces pumps for
passenger cars and truck and off-highway applications, e.g. trucks,
agricultural and construction vehicles, stationary motors and wind power
stations. The Brake Discs business segment develops and produces monobloc
ventilated brake discs made of cast iron and lightweight brake discs made
from a combination of an iron friction ring and an aluminium pot. Customers
of the SHW Group include leading European and North American automobile
manufacturers, manufacturers of commercial, construction and agricultural
vehicles and other automotive suppliers. The SHW Group currently has four
manufacturing sites in Germany. These are located in Bad Schussenried,
Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen ob Eck. With
slightly more than 1,000 employees, the SHW Group generated sales from
continuing operations in 2012 of EUR 325 million. Further information is
available at: www.shw.de
Contact person
Michael Schickling
Head of Investor Relations&Corporate Communications
SHW AG
Telephone: +49 (0) 7361 502 462
Email: michael.schickling(at)shw.de
Future-oriented statements
This press release contains certain future-oriented statements that are
based upon current assumptions and forecasts made by the management of SHW
AG. Various known and unknown risks, uncertainties and other factors may
lead to the actual results, financial position, development or performance
of the company deviating considerably from the appraisals specified here.
The company assumes no obligation to update future-oriented statements of
this nature or adapt them to future events or developments.
Note
This announcement does not constitute an offer to sell securities in the
United States of America, Canada, Australia, Japan or any other
jurisdictional territory where offers are subject to statutory
restrictions. Thesecurities named in this announcement may only be sold or
offered for sale in the United States of America following their prior
registration in accordance with the provisions of the version of the US
Securities Act of 1933 currently in force (the 'Securities Act') or,
without prior registration, only on the basis of an exemption. Unless
provided for by certain exceptions within the Securities Act, the
securities named within this announcement may not be sold or offered for
sale in Australia, Canada or Japan, nor may they be sold or offered for
sale to or for account of residents of Australia, Canada or Japan. No
registration of the offer or sale of the securities named in this
announcement will take place, as stipulated by the relevant statutory
provisions in Canada, Australia and Japan. There is no public solicitation
to buy securities in the United States of America.
End of Corporate News
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21.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: SHW AG
Wilhelmstrasse 67
73433 Aalen-Wasseralfingen
Germany
Phone: +49 7361 502-1
Fax: +49 7361 502-674
E-mail: ir(at)shw.de
Internet: www.shw.de
ISIN: DE000A1JBPV9
WKN: A1JBPV
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Stuttgart
End of News DGAP News-Service
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235333 21.10.2013
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Datum: 21.10.2013 - 07:01 Uhr
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