SHW AG

EANS-News: SHW AG
SHW AG on the road to further success in H1 2011

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6-month report


Aalen-Wasseralfingen (euro adhoc) - SHW AG on the road to further success in H1
2011


•       Revenue rises by 27 percent to EUR178 million
•       Adjusted EBIT improved by 49 percent to EUR13.8 million
•       Outlook: Double-digit growth in FY revenues confirmed


Aalen, 11 August 2011. SHW AG, one of the leading automobile suppliers of
CO2-relevant components (pumps and engine components) and brake discs, recorded
a very successful first half year 2011, due to production start-ups and the rise
in global car production. Incoming orders of SHW AG increased by 29.0 percent to
EUR182.6 million in the first six months of 2011 compared to the previous year.
In the second quarter of 2011, incoming orders even rose by 32.4 percent to
EUR91.5 million.

Group revenues rose by 26.9 percent to EUR178.2 million in the first half of
2011. In the second quarter, revenues grew by 23.1 percent to EUR89.7 million.
This increase resulted primarily from production start-ups and the significantly
increased demand of SHW´s customers.

The operating result adjusted for special effects (Adjusted EBIT) of SHW AG
increased by 49.4 percent to EUR13.8 million in the first six months of 2011. In
the second quarter of 2011, adjusted EBIT even rose by 79.9 percent to EUR7.5
million. In the first half of 2011, the resulting adjusted EBIT margin was 7.7
percent (H1 2010: 6.6 percent) and in the second quarter 8.4 percent (Q2 2010:
5.7 percent). The incurred special effects in the first half of 2011 totalling
EUR2.2 million are mainly attributable to the IPO of SHW AG.

"We look back on a very successful first half of 2011. We were able to achieve
the highest half year sales in our company´s history and to further continue our
profitable growth," says Dr. Wolfgang Krause, CEO of SHW AG. "Once again, this
result demonstrates our success-ful strategic positioning."

Due to a further repayment of the syndicated loan, financial expenses decreased
from EUR1.2 million in first half of 2010 to EUR1.0 million. Financial income
increased in the first half of 2011 compared to the previous year from EUR0.1
million to EUR2.1 million. This includes a EUR2.0 million special income from
the fair value measurement of a receivable. 

Overall net profit in the first half of 2011 was EUR9.5 million and therefore
91.3 percent above the prior year results of EUR5.0 million. In the second
quarter of 2011, net income increased by outstanding 198.2 percent to EUR6.5
million.

Further improvement of equity ratio

The assets and financial position of SHW AG at the end of the first half of
fiscal year 2011 can be described as very solid. The equity ratio of the company
stood at 29.1 percent as of 30 June 2011, after 16.7 percent last year.
"In the first half, we were able to increase all indicators, by which we manage
our business. The significant improvement of our equity ratio to 29.1 percent
confirms our solid financial position," says Oliver Albrecht, CFO of SHW AG. "At
the same time, our healthy balance sheet and low debt is supporting our growth
course."

As a leading technology partner to its clients, SHW AG develops and produces
innovative products that contribute to a reduction of fuel consumption and
consequently CO2 emissions. The importance of research and development for SHW
AG is also reflected in an increase of research and development expenditure,
which rose by 43 percent year-on-year to EUR2.6 million in the first half of
2011. Due to upcoming production start-ups, investments increased from EUR4.5
million in the first half of 2010 to EUR8.5 million in the first half of 2011.
In the second quarter of 2011, investments amounted to EUR5.2 million after
EUR3.0 million in the prior-year pe-riod. 

Positive development in both business segments

In the first six months of 2011, revenues of the business segment Pumps and
Engine Components significantly increased by 26.1 percent to EUR130.3 million.
The strong sales growth of the first quarter 2011 could be continued with a
growth rate of 25.4 percent to EUR66.9 million in the second quarter. The
Passenger Car division benefited from the continued strong demand of car
manufacturers and the continued increase of demand for variable oil pumps. The
Truck & Off-Highway division and the Powder Metallurgy division developed
positively as well. The operating result adjusted for special effects (Adjusted
EBIT) for the business segment rose by 38.3 percent to EUR13.3 million in the
first half of 2011. In the second quarter of 2011, adjusted EBIT of the business
segment increased by 51.3 percent to EUR7.4 million. 

The business segment Brake Disc benefited from the significant rise in demand
for high quality brake discs. In the first half of 2011, the revenue of the
business segment increased by 29.4 percent to EUR47.9 million. In the second
quarter of 2011, revenue rose by 16.8 percent to EUR22.8 million. The operating
result adjusted for special effects (Adjusted EBIT) rose by EUR2.0 million to
EUR1.6 million in the first six month. In the second quarter of 2011, adjusted
EBIT increased from minus EUR0.3 million last year period to EUR0.6 million. 

Outlook

Under the precondition that the economic conditions does not deteriorate
persistently, SHW AG continues to assume double-digit growth in revenues for the
full year along with an im-provement in the Group´s operating result. Growth
rates in the third and fourth quarter of 2011 are likely to be slightly lower
compared to the very strong second half of 2010.

Other dates: 
Publication of the figures for the third quarter of financial year 2011 is
scheduled for 10 No-vember 2011.

 
Key Financials SHW Group 
(in K EUR1)

        Q2 2011 Q2 2010 Changes H1 2011 H1 2010 Changes
Revenues        89,713  72,886  23.1%   178,194 140,381 26.9%
EBIT    6,463   3,522   83.5%   11,531  8,036   43.5%
as % of revenues        7.2%    4.8%            6.5%    5.7%    - 
Net profit      6,497   2,179   198.2%  9,547   4,990   91.3%
Earnings per share (EUR )2      1.11    0.37    198.2%  1.63    0.85    91.3%
Adjusted EBIT3  7,529   4,184   79.9%   13,779  9,223   49.4%
as % of revenues        8.4%    5.7%    -       7.7%    6.6%    - 
Cash flow from operating 
activities      7,684   13,118  -41.4%  8,289   15,341  -46.0%
Cash flow from operating 
activities / revenues   8.6%    18.0%   -       4.7%    10.9%   - 
Equity  -       -       -       46,796  26,112  79.2%
Equity ratio    -       -       -       29.1%   16.7%   - 
Net bank debt   -       -       -       13,641  16,327  -16.5%
Employees as of 30 June 
(number)4       -       -       -       1,078   1,007   7.1%
1 Unless otherwise indicated                            
2 For the reason of comparability based on share capital of 5,851,100 ordinary
bearer shares
3 Adjusted for special effects, cf. interim group management report             
4 Excluding trainees and temporary staff                                        
       

 
About SHW
The enterprise was established in 1365, making it one of the oldest industrial
enterprises in Germany. Today, the SHW AG is a leading supplier of products that
essentially contribute to a reduction of fuel consumption and consequently CO2
emissions. Through its Pumps and Engine Components business segment, SHW Group
develops and produces pumps for passenger vehicles and truck & off-highway
applications (trucks, agricultural and construction vehicles, as well as
stationary engines and wind power stations). In its Brake Disc business segment,
SHW Group develops and manufactures monobloc ventilated brake discs made from
cast iron as well as composite brake discs made from a combination of an iron
friction ring and aluminium pot. Customers of the SHW Group include notable
European and North American producers of passenger cars and commercial vehicles.
The SHW Group has four manufacturing sites in Germany. These are located in Bad
Schussenried, Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen ob Eck.
Through a 50 percent interest in the Canadian company STT Technologies Inc., the
company also has manufacturing sites in Canada and Mexico. With slightly more
than 1,000 employees, the SHW Group generated approx. EUR290 million in revenues
in 2010. 

For further information visit: www.shw.de

Forward-Looking Statements
This press release may contain forward-looking statements based on current
assumptions and forecasts made by SHW AG management. Various known and unknown
risks, uncertainties and other factors could lead to material differences
between the actual future results, financial situation, development or
performance of the company and the estimates given here. The company assumes no
liability whatsoever to update these forward-looking statements or to confirm
them to future events or developments.
Disclaimer
This press release does not constitute an offer for the sale of securities in
the United States of America, Canada, Australia, Japan or other jurisdictions in
which offers are subject to legal restrictions. The securities referred to in
this press release may not be sold or offered for sale in the United States of
America under the regulations of the U.S. Securities Act of 1933, as amended
(the "Securities Act"), absent registration or an exemption from registration.
Subject to certain exemptions in accordance with the Securities Act, the
securities referred to in this announcement may not be sold or offered for sale
in Australia, Canada or Japan or to or for the account of Australian, Canadian
or Japanese persons. No registration will take place of the offer or sale of the
securities referred to in this press release in accordance with the respective
legal requirements in Canada, Australia and Japan. No public offer of securities
is made 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 
E-Mail: michael.schickling@shw.de

end of announcement                               euro adhoc 
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company:     SHW AG
             Wilhelmstrasse 67
             D-73433 Aalen-Wasseralfingen
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: regulated dealing/prime standard: Frankfurt, free trade: Stuttgart,
             Düsseldorf 
language:   English
 



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