DGAP-News: SHW AG / Key word(s): Half Year Results

27.08.2019 / 11:19
The issuer is solely responsible for the content of this announcement.

  • With a holding of now over 75 per cent, the Pierer Group of companies is the industrial anchor shareholder
  • EBIT in the first six months significantly improved compared to the same period of the previous year.

Aalen, 27 August 2019 SHW AG, one of the leading automotive suppliers of CO2-relevant pumps and engine components as well as composite brake discs, published its issuer's report for the first six months of 2019 today.

"In a challenging market environment, we have managed to slightly increase group revenue and the operating result", says Wolfgang Plasser, CEO of SHW AG. "After the delisting purchase offer was brought to a conclusion at the end of June 2019, the Pierer group of companies is now a strategic anchor shareholder with a holding of more than 75 per cent in SHW AG. We focus on capital-efficient growth both domestically and abroad as well as the targeted expansion of the software and electronic competencies of SHW. Winning significant new customer projects and the first synergy gains confirm that we are on the right course."

Improved EBITDA margin lies within guidance

Group sales in the first half of 2019 are up 0.7 per cent on the previous year. Much weaker revenue for diesel applications was the main factor in a fall of 1.4 per cent in the revenue of the Pumps and Engine Components business segment. The Brake Discs business segment recorded an increase in sales of higher priced composite brake discs of over 38 per cent and managed to increase its sales by a total of 7.2 per cent.

While non-recurring expenses of EUR 7.2 million reduced EBITDA in the first half of fiscal year 2018[1], there were no such non-recurring expenses in the first six months of fiscal year 2019. Moreover, depreciation and amortisation increased by roughly EUR 0.8 million on account of the sharp rise in capital expenditure in the years 2017 and 2018. EBITDA increased by roughly EUR 8.1 million in comparison to the comparative period of the previous year. The EBITDA margin rose from 5.7 per cent (9.1 per cent after eliminating non-recurring effects) in the first half of 2018 to 9.2 per cent in first half of 2019.

Record level of investment due to the start-up of new customer projects

The rise of capital expenditure, which is up by more than 50 per cent on the comparative period of the previous year, led to a rise in non-current assets of approximately EUR 26.9 million. The increase of roughly EUR 9.1 million in net working capital can be primarily attributed to work to prepare for the production of new series - particularly at the foreign locations - the performance or settlement of which led to higher inventories and trade receivables as at the reporting date. In addition to the significant improvement in the cash flow from operating activities (H1 2019: EUR 9.8 million; H1 2018: EUR -7.9 million), investing activities in 2019 (cash outflow of approximately EUR -22.0 million) were financed by taking out additional financial liabilities of roughly EUR 12.9 million. Before the backdrop of the record level of investment over the full fiscal year 2018 and another sharp increase in investments in the first six months of 2019, the net financial debt of the SHW Group increased to EUR 52.8 million as at 30 June 2019.

No change in the outlook

The Management Board of SHW AG continues to forecast group sales for the fiscal year 2019 within a range of between EUR 440 million and EUR 480 million. The EBITDA margin is expected to range between 8.5 per cent and 10 per cent.



  K EUR 2019 2018 Change %
  Sales 221,937 220,301 0.7 %
  EBITDA 20,525 12,463 64.7 %
  as % of sales 9.2 % 5.7 % -
  Depreciation and amortisation 12,794 11,974 6.8 %
  as % of sales 5.8 % 5.4 % -
  EBIT 7,731 489 1481.0 %
  as % of sales 3.5 % 0.2 % -
  Net profit or loss for the period 4,613 - 661 -
  Earnings per share (EUR)* 0.72 - 0.10 -
  Equity 127,499 120,599 5.7 %
  Equity ratio 40.9 % 43.4 % -
  Cash flow from operating activities 9,777 - 7,920 -
  Cash flow from investing activities (intangible assets and property, plant and equipment) - 22,018 - 16,938 30.0 %
  Operating free cash flow - 12,241 - 24,858 50.8 %
  Total free cash flow - 12,241 - 8,639 - 41.7 %
  Net financial debt - 52,808 - 30,456 - 73.4 %
  Investments 26,535 16,947 56.6 %
  as % of sales 12.0 % 7.7 % -
  Net working capital 70,346 58,754 19.7 %
  Net working capital as % of sales (past twelve months) 16.6 % 14.0 % -
  ROE (past twelve months) 6.8 % 3.4 % -
  ROCE (past twelve months) 6.5 % 4.3 % -
  * Earnings per share calculated in relation to an average of 6,436,209 shares (Previous year 6,436,209 shares).      


Development of the business segments

  K EUR 2019 2018 Change %
  Sales 162,990 165,336 - 1.4%
  EBITDA 14,588 11,476 27.1%
  as % of sales 9.0% 6.9% -
  Depreciation and amortisation 8,937 9,297 - 3.9%
  as % of sales 5.5% 5.6% -
  EBIT 5,651 2,179 159.3%
  as % of sales 3.5% 1.3% -
  Segment investments 18,100 9,220 96.3%
  ROCE (past twelve months) 7.6% 9.4% -
  Sales 58,947 54,965 7.2%
  EBITDA 6,525 5,028 29.8%
  as % of sales 11.1% 9.1% -
  Depreciation and amortisation 3,226 2,351 37.2%
  as % of sales 5.5% 4.3% -
  EBIT 3,299 2,677 23.2%
  as % of sales 5.6% 4.9% -
  Segment investments 6,585 7,083 - 7.0%
  ROCE (past twelve months) 10.6% 5.9% -
  Sales - - -
  EBITDA - 588 - 4,041 - 85.4%
  Depreciation and amortisation 631 326 93.6%
  EBIT - 1,219 - 4,367 - 72.1%
  Segment investments 1,850 644 187.3%



The origins of the company reach back to the year 1365, making it one of the oldest industrial companies in Germany. Today, SHW AG is a leading automotive supplier, providing products that make a substantial contribution to reducing fuel consumption and, consequently, to lowering CO2 emissions. In its Pumps and Engine Components business segment, the SHW Group develops and produces pumps for passenger vehicles and truck & off-highway applications (e.g., trucks, agricultural and construction machinery, stationary engines and wind farms) as well as engine components. The Brake Discs business segment develops and produces monobloc ventilated brake discs made of cast iron and composite brake discs made of a combination of an iron friction ring and an aluminium pot. The SHW Group's customers include renowned automobile manufacturers, manufacturers of commercial, agricultural and construction vehicles as well as other suppliers to the automotive industry. Currently, the SHW Group has five production sites in Germany located in Bad Schussenried, Aalen-Wasseralfingen, Hermsdorf, Tuttlingen-Ludwigstal and Neuhausen ob Eck, plus sites in Brazil (São Paulo), China (Kunshan), Toronto (Canada) and Timișoara (Romania). With more than 1,500 employees, the company achieved Group sales of above EUR 420 million in the fiscal year 2018. Further information is available at www.shw.de.


Investor Relations & Corporate Communications

Michaela Friepess
Telephone: +49 7361 502 - 420
Email: michaela.friepess@panklshw.com

Ramona Zettl
Telephone: +49 7361 502 - 420
Email: ramona.zettl@shw.de


This press release contains certain future-oriented statements that are based on 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.


This announcement is for information purposes only and does neither constitute an offer to sell, purchase, exchange or transfer any securities nor a solicitation of any offer to sell, purchase, exchange or transfer any securities. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. SHW AG does not intend to register any securities referred to herein under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States in connection with this announcement.

[1] We refer to the explanations on page 8 of the half-year financial report for 2018.

27.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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