SHW AG / Key word(s): Quarter Results/Preliminary Results21.10.2013 / 07:01---------------------------------------------------------------------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 automotivesuppliers of CO2-relevant pumps and engine components, as well as brakediscs, published its preliminary financial figures for the third quarterand first nine months of 2013.In the third quarter, as a result of its broad product portfolio of highlyefficient components for engines and gearbox applications, the company wasable to seamlessly tie in with the successful previous quarter, andachieved record sales and earnings figures.Group sales were up by 12.7 percent from EUR 82.1 million to EUR 92.6million. This increase was mainly the result of a recently launchedoil/vacuum pump for a well-known European automotive manufacturer, the rampup of electric transmission oil pumps for start-stop, as well as high endcomposite brake discs.At EUR 11.1 million, group earnings before interest, tax and depreciationof fixed assets and amortisation of intangible assets (adjusted EBITDA)were 27.1 percent higher for the period July to September 2013 than thecomparable amount of EUR 8.7 million in the previous year. The adjustedEBITDA margin of 12.0 percent was on par with the high level of theprevious quarter.'These very pleasing Q3 figures are the result of our strict focus onCO2-relevant vehicle components', stated Dr Thomas Buchholz, CEO of SHW AGand responsible for the Pumps and Engine Components business segment. 'Ourinnovative product and process solutions, as well as the strictimplementation of our internationalisation strategy provide a sound basisfor further profitable growth over the next few years.'Pumps and Engine Components: significant rise in the EBITDA margin to 13.6percentSales in the Pumps and Engine Components business segment were up by 16.5percent to EUR 69.9 million in the third quarter of 2013 (previous year:EUR 60.0 million). The Passenger Car division benefited from high demandfor variable oil pumps and electrical gearbox oil pumps and achieved a 20.0percent rise in sales to EUR 56.3 million (previous year: EUR 46.9million). The increase in demand from manufacturers of construction andagricultural 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 6.3million).The Pumps and Engine Components business segment achieved record segmentearnings before interest, tax, depreciation and amortisation (adjustedEBITDA) of EUR 9.5 million (previous year: EUR 7.7 million) in the thirdquarter of 2013. The EBITDA margin of 13.6 clearly exceeded last year'sfigure of 12.8 percent.Brake Discs: EBITDA margin up from 5.6 percent to 8.7 percentSales in the Brake Discs business segment rose by 2.6 percent in the thirdquarter of 2013 compared to the same period in the previous year to EUR22.7 million (2012: EUR 22.1 million) as a result of a significant increasein sales of composite brake discs.In the third quarter of 2013, the number of composite brake discs sold roseby 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 to896,500 units (previous year: 871,300 units). The total number of brakediscs sold rose by 4.1 percent to 957,200 units.A combination of factors, ranging from an improved product mix towards highend composite brake discs, increased productivity and also lower qualitycontrol costs led to a rise in segment earnings before interest, tax,depreciation and amortisation (adjusted EBITDA) in the third quarter of2013 of 58.4 percent, from EUR 1.2 million to EUR 2.0 million. The EBITDAmargin was up from 5.6 percent to 8.7 percent.'The technical concept behind SHW's composite brake disc continues topenetrate the market successfully', stated Andreas Rydzewski, Member of theManagement Board and responsible for the Brake Discs business segment.Indeed, SHW recently concluded an initial contract with a well-known NorthAmerican automobile manufacturer.Result for first nine months tops previous yearGroup sales were up by 6.3 percent to EUR 269.0 million for the first ninemonths of 2013, compared to EUR 253.1 million for the same period in theprevious year thanks to the very pleasing results attained in the thirdquarter. The adjusted EBITDA is EUR 28.6 million, which corresponds to arise of 3.3 percent. The main reason for this slightly disproportionateincrease in earnings stems from the weaker first quarter and includesadverse effects caused by temporary performance losses (SAP launch relatedoperating costs for consultants, special shipments and external processingorders), higher start-up costs and stock-related impairments. Again positive free cash flow in spite of high investmentsSHW achieved a cash flow from operating activities in the third quarter of2013 amounting to EUR 10.4 million, meaning that it was on track with thepleasing result of EUR 11.2 million attained in the previous quarter. Cashflow from investment activities increased - particularly in conjunctionwith numerous new product launches in the Pumps and Engine Componentsbusiness segment - by 124.9 percent to EUR -9.2 million in the period fromJuly to September 2013 (previous year: EUR -4.1 million). This means apositive free cash flow of EUR 1.2 million has been achieved in spite ofextensive investments undertaken in growth. 'We will continue working hardto reduce our working capital', stated Sascha Rosengart, CFO at SHW AG.'Our mid-term objective is to lower working capital to 11 percent ofsales'.Further reinforcement of management teamSHW continued to reinforce its management team in the Pumps and EngineComponents business segment during the third quarter of 2013. Mr PeterMüller took over the position as Head of Logistics for the Passenger Cardivision on 16 September, coming from Roman Mayer Logistik Group. On thesame day Dr Henrik Brehler joined SHW as Head of Development of thePassenger Car Division from Hilite Germany GmbH, a leading globalautomotive supplier for engine and gearbox applications.Initial milestone of North American strategy realizedBased on the approval of the Supervisory Board SHW recently startedimplementing the first milestone in its North American strategy by theformation of a sales and development company in Canada. The chosen siteguarantees the closest possible proximity to the three major US automobilemanufacturers and timely start of the market development. Mr Peter Krugwill take up the position as General Manager from the beginning ofNovember. He was most recently employed as Vice President in der Fluid,Pressure and Controls Group of Magna Powertrain (MPT). Between 2000 and2008 Mr Krug was the General Manager for the Canadian pump manufacturersSTT Technologies Inc., in which SHW held a 50 percent stake until the endof October 2012. 'We're delighted to have such an experienced pumpspecialist as Peter Krug on board with proven success in the developmentand expansion of the North American market ', emphasised Dr ThomasBuchholz.Continued pleasing development of incoming orders will ensure a buoyantfinal quarterDevelopment in order intake remained very positive. At Group level, thecompany was able to record a rise in order intake of 20.9 percent to EUR90.3 million for the third quarter of the year, with orders for the Pumpsand Engine Components business segment rising by 19.8 percent to EUR 65.1million and the Brake Discs business segment recording an increase of 23.7percent to EUR 25.2 million. As a result of the above as well as assumingthat customer orders remain stable, SHW expects a strong fourth quarter2013. The company anticipates sales of between EUR 62 million to EUR 70million for the Pumps and Engine Components business segment. The BrakeDiscs business segment is likely to achieve sales of around EUR 21 millionto 23 million.Outlook specified Overall, SHW AG now expects Group sales in fiscal year 2013 to lie withinthe region of between EUR 352 million to EUR 362 million (previously: EUR330 million to EUR 345 million), with sales in the Pump and EngineComponents business segment accounting for between EUR 264 million to EUR272 million (previously: EUR 240 million to EUR 255 million) and EUR 88million to EUR 90 million for the Brake Discs business segment.Based on figures for the first nine months of the year, SHW is nowexpecting that Group earnings before interest, tax, depreciation andamortisation (adjusted EBITDA) for fiscal year 2013 to be around EUR 35million to EUR 38 million and is thus likely to top last year's figure ofEUR 33.9 million.[1] STT Technologies Inc., which had been included in the consolidation ona pro-rata basis until the end of October 2012, has now, further to itssale, been classified as a 'discontinued operation' in accordance with IFRS5. Sales, expenditure and earnings for the third quarter and the first ninemonths of 2012 were adjusted accordingly. About SHWThe enterprise was established in 1365, making it one of the oldestindustrial enterprises in Germany. Today, SHW AG is a leading automotivesupplier with products that contribute substantially to a reduction of fuelconsumption and consequently CO2 emissions. In its Pumps and EngineComponents business segment, the SHW Group develops and produces pumps forpassenger cars and truck and off-highway applications, e.g. trucks,agricultural and construction vehicles, stationary motors and wind powerstations. The Brake Discs business segment develops and produces monoblocventilated brake discs made of cast iron and lightweight brake discs madefrom a combination of an iron friction ring and an aluminium pot. Customersof the SHW Group include leading European and North American automobilemanufacturers, manufacturers of commercial, construction and agriculturalvehicles and other automotive suppliers. The SHW Group currently has fourmanufacturing sites in Germany. These are located in Bad Schussenried,Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen ob Eck. Withslightly more than 1,000 employees, the SHW Group generated sales fromcontinuing operations in 2012 of EUR 325 million. Further information isavailable at: www.shw.deContact personMichael SchicklingHead of Investor Relations & Corporate CommunicationsSHW AGTelephone: +49 (0) 7361 502 462Email: michael.schickling@shw.deFuture-oriented statementsThis press release contains certain future-oriented statements that arebased upon current assumptions and forecasts made by the management of SHWAG. Various known and unknown risks, uncertainties and other factors maylead to the actual results, financial position, development or performanceof the company deviating considerably from the appraisals specified here.The company assumes no obligation to update future-oriented statements ofthis nature or adapt them to future events or developments.NoteThis announcement does not constitute an offer to sell securities in theUnited States of America, Canada, Australia, Japan or any otherjurisdictional territory where offers are subject to statutoryrestrictions. The securities named in this announcement may only be sold oroffered for sale in the United States of America following their priorregistration in accordance with the provisions of the version of the USSecurities Act of 1933 currently in force (the 'Securities Act') or,without prior registration, only on the basis of an exemption. Unlessprovided for by certain exceptions within the Securities Act, thesecurities named within this announcement may not be sold or offered forsale in Australia, Canada or Japan, nor may they be sold or offered forsale to or for account of residents of Australia, Canada or Japan. Noregistration of the offer or sale of the securities named in thisannouncement will take place, as stipulated by the relevant statutoryprovisions in Canada, Australia and Japan. There is no public solicitationto buy securities in the United States of America.End of Corporate News---------------------------------------------------------------------21.10.2013 Dissemination of a Corporate News, transmitted by DGAP - acompany of EQS Group AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at and    English                                           Company:     SHW AG                                                         Wilhelmstrasse 67                                              73433 Aalen-Wasseralfingen                                     Germany                                           Phone:       +49 7361 502-1                                    Fax:         +49 7361 502-674                                  E-mail:                                         Internet:                                        ISIN:        DE000A1JBPV9                                      WKN:         A1JBPV                                            Listed:      Regulierter Markt in Frankfurt (Prime Standard);               Freiverkehr in Berlin, Düsseldorf, Stuttgart        End of News    DGAP News-Service  ---------------------------------------------------------------------  235333 21.10.2013