EANS-News: SHW AG confirms positive outlook for 2012
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Financial Figures/Balance Sheet/6-month report Aalen (euro adhoc) - Groups sales grow by 13.3 percent to EUR 202.0 million in the first half of 2012 - Group earnings before interest, taxes, depreciation and amortisation (EBITDA) climb 22.8 percent to EUR 23.2 million - Low leverage supports profitable realization of the growth strategy Aalen, 6 August 2012. SHW AG, one of the leading suppliers of CO2-relevant pumps and engine components as well as brake discs, continued its success story in the first half of 2012, when both Group sales and Group net income for the period reached new record levels. Group sales improved by 13.3 percent to EUR 202.2 million (previous year: EUR 178.2 million). This growth is mainly attributable to a large number of production start-ups and the stable demand of SHW customers. Group earnings before interest, taxes, depreciation and amortisation (EBITDA) in the January to June 2012 period were up by EUR 4.3 million on the previous year to EUR 23.2 million. At 11.5 percent, the EBITDA margin clearly exceeded the prior year level of 10.6 percent. Net income for the period rose by 16.2 percent to EUR 11.1 million (previous year: EUR 9.5 million). Earnings per share amounted to EUR 1.90 (previous year: EUR 1.66). "The good half-year figures reconfirm our consequent orientation on CO2-relevant products," said CEO Dr. Wolfgang Krause, who is in charge of the Pumps and Engine Components business segment. "The European Commission has just presented much stricter CO2 targets for the year 2020, which will benefit SHW." Further improved equity ratio; low leverage ratio At the six-month stage of the financial year 2012, the net assets and financial position of SHW was again very solid. The equity ratio stood at 34.1 percent on 30 June 2012, compared to 29.1 percent in the previous year. Due to upcoming production start-ups, investments in the first six months of 2012 climbed from EUR 8.5 million to EUR 8.9 million. "In spite of the high investments and the dividend distribution of EUR 5.9 million, our leverage ratio - the relation between net bank debt and EBITDA - stands at a very low 0.44," emphasised CFO Oliver Albrecht. "This gives us a high degree of financial flexibility and is the basis for our ability to invest and the profitable realization of our growth strategy in the coming years." Pumps and Engine Components business segment remains main growth driver First-half sales in the Pumps and Engine Components business segment were up by 19.8 percent on the previous year to EUR 156.1 million (previous year: EUR 130.3 million). Reporting a 25.0 percent increase in sales to EUR 125.7 million, the Passenger Car division benefited from high demand for variable oil pumps and start-stop pumps and the production start of an oil/vacuum pump. EBITDA in the Pumps and Engine Components business segment were up by EUR 3.9 million to EUR 20.6 million in the January to June 2012 period. The EBITDA margin improved from 12.8 percent to 13.2 percent. Sales in the Brake Discs business segment decreased by 4.3 percent to EUR 45.8 million (previous year: EUR 47.9 million). At EUR 3.1 million, earnings before interest, taxes, depreciation and amortisation (EBITDA) were on a par with the previous year. The EBITDA margin increased from 6.4 percent in the previous year to 6.9 percent. "The measures initiated to improve our profitability are increasingly bearing fruit," said Andreas Rydzewski, member of the Management Board and in charge of the Brake Discs business segment. "An EBIT margin of 4.3 percent in the second quarter of 2012 means that we have come a great deal closer to our target range." Guidance confirmed The risks to the economy - especially for the Eurozone - increased again in the second quarter as the sovereign debt crisis remains unsolved. According to industry experts, this will reduce the output of light vehicles (vehicles < 6 t) in the European Union by about 5 percent. SHW will probably not be able to isolate itself entirely from such a trend. "But the good first-half figures make us confident that we will reach the targets we have set ourselves for this year," said Dr. Wolfgang Krause. "At this stage, we expect to generate Group sales of between EUR 370 and 385 million." If this sales growth is achieved, Group earnings before interest, taxes, depreciation and amortisation (EBITDA) should grow at a slightly higher rate than sales. About SHW The enterprise was established in 1365, making it one of the oldest industrial enterprises in Germany. Today, the SHW Group is a leading supplier for the automotive industry with products that contribute 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, farm and construction vehicles, stationary motors and wind power stations. The Brake Discs business segment develops and produces monobloc ventilated 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 producers of passenger cars and commercial vehicles with manufacturing facilities in Europe and North America. The SHW Group has four manufacturing sites in Germany, located in Bad Schussenried, Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen ob Eck. Via its 50 percent interest in the Canadian company STT Technologies Inc., the company also has production sites in Canada and Mexico. With more than 1,000 employees, the SHW Group generated approx. EUR 360 million in sales in 2011. Further information is available at: www.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. Further inquiry note: Michael Schickling Head of Investor Relations & Corporate Communications SHW AG Telephone: +49 (0) 7361 502 462 Email: michael.schickling@shw.de end of announcement euro adhoc -------------------------------------------------------------------------------- company: SHW AG Wilhelmstrasse 67 D-73433 Aalen phone: +49 7361 502-1 FAX: +49 7361 502-674 mail: ir@shw.de WWW: http://www.shw.de sector: Automotive Equipment ISIN: DE000A1JBPV9 indexes: stockmarkets: free trade: Düsseldorf, Stuttgart, regulated dealing/prime standard: Frankfurt language: English
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