DGAP-News: SHW AG / Key word(s): Final Results/Dividend17.03.2014 / 07:15---------------------------------------------------------------------PRESS RELEASE SHW AG to propose stable dividend of EUR 1.00 per share- Dividend proposal: EUR 1.00 per share- Group sales and adjusted Group EBITDA in Q1 2014 expected to exceed prioryear quarter and previous quarterAalen, 17 March 2014. SHW AG, one of the leading suppliers of CO2-relevantpumps and engine components as well as brake discs, today published theAnnual Report containing the final figures for fiscal year 2013. Due to newproduct launches, Group sales improved by 12.4 percent to EUR 365.6 million(previous year: EUR 325.4 million) although vehicle production in Europestagnated at the prior year level.Adjusted Group earnings before interest, taxes, depreciation andamortisation (adjusted EBITDA) were up by 5.3 percent or EUR 1.8 million onthe previous year to EUR 35.7 million (previous year: EUR 33.9 million).It should be noted that the SAP-Go-Live on 1 January 2013 led to additionalexpenses for consulting support, overtime, rush shipments and externalprocessing in the first quarter. In the fourth quarter, additional expensesresulted from reduced machine availability in the Powder Metallurgydivision, increased maintenance costs in the Brake Discs business segment,additional costs caused by weekend work as well as losses coming frominventory differences following a full stocktaking at all locations.At EUR 13.4 million, income after tax from continued operations wasnegatively impacted by significantly higher depreciation and therefore didnot reach previous year's level of EUR 14.2 million."In view of the business trend and the solid balance sheet structure, theManagement Board and the Supervisory Board decided to propose a stabledividend of EUR 1.00 per share to the Annual General Meeting, which will beheld in Heidenheim on 9 May," said CEO Dr. Thomas Buchholz, who is incharge of the Pumps and Engine Components business segment. Thiscorresponds to a payout ratio [1] of 43.7 Percent (previous year: 41.7percent).Group sales and adjusted Group EBITDA in Q1 2014 expected to exceed prioryear quarter and previous quarterSHW had a good start into the new fiscal year. At EUR 66.9 million, Groupsales for the first two months were up by 24.4 percent on the previousyear's EUR 53.8 million. The positive trend in the Pumps and EngineComponents business segment continued, with sales of fuel efficient pumpsrising by 28.9 percent to EUR 51.2 million (previous year: EUR 39.7million). The Brake Discs business segment achieved a sales growth of 11.7percent to EUR 15.7 million.The Management Board expects Group sales in the first quarter of 2014 toclearly exceed the EUR 84.6 million reported in the same quarter of theprevious year and to be slightly higher than the EUR 96.7 million generatedin the fourth quarter of 2013. Adjusted Group earnings before interest,taxes, depreciation and amortisation (adjusted EBITDA) in the first quarterof 2014 should clearly exceed the adjusted EUR 6.0 million posted in thesame quarter of the previous year and be slightly higher than the EUR 7.6million reported in the previous quarter.Based on the assumption that the order situation remains stable, SHW AGprojects Group sales of between EUR 380 million and EUR 400 million forfiscal year 2014. Due to planned new product launches and a shift in theproduct mix towards more complex pumps, sales in the Pumps and EngineComponents business segment should come in between EUR 287 million and EUR305 million. In the Brake Discs business segment, the aim is to increasethe percentage of processed brake discs and higher-quality composite brakedisks to generate sales in between EUR 93 million and EUR 95 million.The Management Board's focus in fiscal year 2014 will be primarily onwinning new orders, optimising logistical and operational businessprocesses at all locations, as well as establishing and expanding ofbusiness in Brazil, China and North America. If the planned sales growth isachieved, the Company expects to reach adjusted Group earnings beforeinterest, taxes, depreciation and amortisation (adjusted EBITDA) of betweenEUR 38 million and EUR 40 million. The fiscal year 2014 will also see theManagement Board focus on optimising the company's working capital.The report on the first three months of 2014 will be published on 30 April2014. The Annual General Meeting will be held in Heidenheim on 9 May 2014. [1] Relation between dividend sum and net income after tax from continuedoperations. 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---------------------------------------------------------------------17.03.2014 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  ---------------------------------------------------------------------  257684 17.03.2014