SHW AG achieves record quarterly sales and order intake figures
22.01.2014
DGAP-News: SHW AG / Key word(s): Interim Report/Preliminary Results
22.01.2014 / 07:36
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PRESS RELEASE
SHW 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 horizon
Aalen, 22 January 2014. Today, SHW AG, one of the leading automotive
suppliers of CO2-relevant pumps and engine components, as well as brake
discs, published its provisional sales and order intake figures for Q4 and
fiscal year 2013.
As a result of its broad product portfolio of highly efficient components
for engines and transmission applications, the company was able to
seamlessly tie in with the successful previous quarter, and achieved record
sales and order intake figures.
Group sales rose by 32.9 percent from 72.3 million euros to 96.0 million
euros compared to the economically weaker previous year's quarter. This
increase was mainly due to the recently launched oil/vacuum pump (tandem
pump), the start-up of electric transmission oil pumps for the start-stop
function, 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 103.5
million euros for the fourth quarter of the year, with orders for the Pumps
and Engine Components business segment rising by 46.6 percent to 80.1
million euros and the Brake Discs business segment recording an increase of
20.0 percent to 23.4 million euros.
'Provided there is a continually stable customer demand, the exceedingly
pleasing 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 and
Engine Components business segment. 'Moreover, we were awarded for the
third tranche of an oil/vacuum pump (tandem pump) for a well-known European
car manufacturer which is expected to achieve annual sales of around 24
million euros.' Serial production is due to commence in 2015.
Measures introduced for a sustainable working capital reduction with a
focus on inventory reductions show the first positive results in the fourth
quarter of 2013. 'At around 9.2 percent of sales on the balance sheet date
31 December 2013, we overachieved our goal of 11 percent', stated Sascha
Rosengart, CFO at SHW AG. Accordingly, this had a positive impact on the
course of the net financial debt, which we were able to reduce to 3.4
million euros compared to 19.0 million euros recorded on 30 September 2013.
Good progress made in implementing the internationalisation strategy -
first orders on the horizon
North America
In the fourth quarter of 2013 SHW AG made good progress in implementing its
internationalisation strategy. The Canadian subsidiary, SHW Pumps & Engine
Components 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 and
endurance test rigs) and administrative building. In addition, there is
sufficient space in the building to be able to launch a small-scale
production.
Preliminary investigations should be completed within six months, and these
will serve as the basis for deciding on the future manufacturing site for
serial production. Potential sites are primarily being considered in the
southern USA and Mexico. Each of the above regions provides a good
infrastructure, 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 the
meantime. 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 American
truck and off-highway customer for a deal to supply fuel pumps after having
already supplied quite a large number of prototypes and signed a letter of
intent', said Dr. Thomas Buchholz. Production is due to commence in late
2016.
China
In China SHW is in the final stages of negotiating a deal (multi-year
contract) with a well-known European engine manufacturer for truck and
off-highway applications to be produced at the Chinese plant. This would
entail manufacturing and delivering the first pumps in China as from
mid-2015. Production would be on a small scale in 2015 and gradually
increased to reach target levels by 2018, after which it would continue at
this level for several years. Demand for the Chinese market alone would
result in sales of around 3.4 million euros p.a. In addition, the company
is also planning to produce the client's European demand in China. Overall
this 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 a
general manager and is confident that it will be able to find an
experienced manager skilled in leading a start-up in China in the coming
months.
Brazil
The assembly plant in Brazil has now gone into production. The on-site
inspection and approval by the customer was carried out successfully
shortly before the festive period. The first deliveries to the customer are
due to commence at the end of the first quarter or beginning of the second
quarter.
Earnings forecast for fiscal year 2013 confirmed
Group sales were up by 12.2 percent from 325.4 million euros to 365.0
million euros in fiscal year 2013. Sales in the Pumps and Engine Components
business segment rose by 15.1 percent to 273.8 million euros - mainly as a
result of product launches (previous year: 237.9 million euros). Sales in
the Brake Discs business segment increased by 4.2 percent to 91.2 million
euros (2012: 87.5 million euros), primarily due to a significant rise in
sales of composite brake discs compared to the same period in the previous
year.
SHW confirms the earnings forecast for fiscal year 2013 from the nine-month
report and is continuing to anticipate adjusted Group earnings before
interest, tax, depreciation and amortisation (EBITDA adjusted) in the range
of between 35 and 38 million euros.
About SHW
The business 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 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 and
produces monobloc vented 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 car manufacturers, manufacturers of commercial, construction
and agricultural machinery 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 just over 1,000 employees, the SHW Group generated sales from
continuing operations in 2013 of 365 million euros. 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@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. The securities 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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22.01.2014 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@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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