DGAP-News: SHW AG / Key word(s): Interim Report/Preliminary Results22.01.2014 / 07:36---------------------------------------------------------------------PRESS RELEASESHW AG achieves record quarterly sales and order intake figures   - Group sales  up 32.9 percent to 96.0 million euros  - Order intakes up 39.6 percent to 103.5 million euros  - Significant drop in working capital and net financial debt  - Good progress made in implementing the internationalisation strategy -    first orders on the horizonAalen, 22 January 2014. Today, SHW AG, one of the leading automotivesuppliers of CO2-relevant pumps and engine components, as well as brakediscs, published its provisional sales and order intake figures for Q4 andfiscal year 2013.As a result of its broad product portfolio of highly efficient componentsfor engines and transmission applications, the company was able toseamlessly tie in with the successful previous quarter, and achieved recordsales and order intake figures.Group sales rose by 32.9 percent from 72.3 million euros to 96.0 millioneuros compared to the economically weaker previous year's quarter. Thisincrease was mainly due to the recently launched oil/vacuum pump (tandempump), the start-up of electric transmission oil pumps for the start-stopfunction, as well as higher value composite brake discs.Development in order intake also remained very positive. At Group level,the company was able to record a 39.6 percent rise in order intake to 103.5million euros for the fourth quarter of the year, with orders for the Pumpsand Engine Components business segment rising by 46.6 percent to 80.1million euros and the Brake Discs business segment recording an increase of20.0 percent to 23.4 million euros.'Provided there is a continually stable customer demand, the exceedinglypleasing order intake figures achieved in the fourth quarter of 2013, ,means that we can expect to get off to a good start in fiscal year 2014',said Dr. Thomas Buchholz, CEO of SHW AG and responsible for the Pumps andEngine Components business segment. 'Moreover, we were awarded for thethird tranche of an oil/vacuum pump (tandem pump) for a well-known Europeancar manufacturer which is expected to achieve annual sales of around 24million euros.' Serial production is due to commence in 2015.Measures introduced for a sustainable working capital reduction with afocus on inventory reductions show the first positive results in the fourthquarter of 2013. 'At around 9.2 percent of sales on the balance sheet date31 December 2013, we overachieved our goal of 11 percent', stated SaschaRosengart, CFO at SHW AG. Accordingly, this had a positive impact on thecourse of the net financial debt, which we were able to reduce to 3.4million euros compared to 19.0 million euros recorded on 30 September 2013.Good progress made in implementing the internationalisation strategy -first orders on the horizonNorth AmericaIn the fourth quarter of 2013 SHW AG made good progress in implementing itsinternationalisation strategy. The Canadian subsidiary, SHW Pumps & EngineComponents Inc., Toronto, Ontario, was set up on 17 October 2013.Meanwhile, the lease of a building in Brampton, Ontario, has been signed,which will serve as a development centre (including the performance andendurance test rigs) and administrative building. In addition, there issufficient space in the building to be able to launch a small-scaleproduction.Preliminary investigations should be completed within six months, and thesewill serve as the basis for deciding on the future manufacturing site forserial production. Potential sites are primarily being considered in thesouthern USA and Mexico. Each of the above regions provides a goodinfrastructure, comparatively low wages, as well as investment grants.After Peter Krug commenced his post as General Manager on 4 November 2013,a salesperson and two development specialists have been hired in themeantime. The number of staff is due to increase to five by mid-2014.'We are currently in the midst of final negotiations with a North Americantruck and off-highway customer for a deal to supply fuel pumps after havingalready supplied quite a large number of prototypes and signed a letter ofintent', said Dr. Thomas Buchholz. Production is due to commence in late2016.ChinaIn China SHW is in the final stages of negotiating a deal (multi-yearcontract) with a well-known European engine manufacturer for truck andoff-highway applications to be produced at the Chinese plant. This wouldentail manufacturing and delivering the first pumps in China as frommid-2015. Production would be on a small scale in 2015 and graduallyincreased to reach target levels by 2018, after which it would continue atthis level for several years. Demand for the Chinese market alone wouldresult in sales of around 3.4 million euros p.a. In addition, the companyis also planning to produce the client's European demand in China. Overallthis will lead to annual sales of around 7 million euros as from 2017/2018.While conducting these negotiations, SHW has also begun the search for ageneral manager and is confident that it will be able to find anexperienced manager skilled in leading a start-up in China in the comingmonths.BrazilThe assembly plant in Brazil has now gone into production. The on-siteinspection and approval by the customer was carried out successfullyshortly before the festive period. The first deliveries to the customer aredue to commence at the end of the first quarter or beginning of the secondquarter.Earnings forecast for fiscal year 2013 confirmed Group sales were up by 12.2 percent from 325.4 million euros to 365.0million euros in fiscal year 2013. Sales in the Pumps and Engine Componentsbusiness segment rose by 15.1 percent to 273.8 million euros - mainly as aresult of product launches (previous year: 237.9 million euros). Sales inthe Brake Discs business segment increased by 4.2 percent to 91.2 millioneuros (2012: 87.5 million euros), primarily due to a significant rise insales of composite brake discs compared to the same period in the previousyear.SHW confirms the earnings forecast for fiscal year 2013 from the nine-monthreport and is continuing to anticipate adjusted Group earnings beforeinterest, tax, depreciation and amortisation (EBITDA adjusted) in the rangeof between 35 and 38 million euros. About SHWThe business 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 vehicles and truck and off-highway applications, e.g. trucks,agricultural and construction vehicles, stationary motors and wind farms,as well as engine components. The Brake Discs business segment develops andproduces monobloc vented brake discs made of cast iron and lightweightbrake discs made from a combination of an iron friction ring and analuminium pot. Customers of the SHW Group include leading European andNorth American car manufacturers, manufacturers of commercial, constructionand agricultural machinery and other automotive suppliers. The SHW Groupcurrently has four manufacturing sites in Germany. These are located in BadSchussenried, Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen obEck. With just over 1,000 employees, the SHW Group generated sales fromcontinuing operations in 2013 of 365 million euros. 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---------------------------------------------------------------------22.01.2014 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 www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------Language:    English                                           Company:     SHW AG                                                         Wilhelmstrasse 67                                              73433 Aalen-Wasseralfingen                                     Germany                                           Phone:       +49 7361 502-1                                    Fax:         +49 7361 502-674                                  E-mail:      ir@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  ---------------------------------------------------------------------  249016 22.01.2014