DGAP-News: SHW AG: Outlook for the fiscal year 2019 determined by a slower ramp-up of Chinese activities and the transition to WLTP

PRESS RELEASE

SHW AG: Outlook for the fiscal year 2019 determined by a slower ramp-up of Chinese activities and the transition to WLTP

Aalen, 17 October 2018. The Management Board of SHW AG today closely examined the sales and earnings projections for the medium term.

Primarily in the wake of a slower ramp-up of the Chinese business activities and the uncertainties arising from the transition to the new WLTP emissions testing cycle, SHW AG is now projecting Group sales for fiscal year 2019 to lie in a range between EUR 440 million and EUR 480 million (previous forecast: EUR 540 million to EUR 560 million; 2018e: EUR 420 million to EUR 440 million). The adjustment to the sales forecast is solely attributable to the Pumps and Engine Components business segment. The sales of the Brake Discs business segment are expected to continue developing in line with the previous forecasts.

"The original planning for our Chinese location cannot be realized to the expected extent in the short-term," says Wolfgang Plasser, the Chairman of the Management Board of SHW AG.

Based on the latest information, the Management Board considers an EBITDA margin of between 8.5 and 10 per cent to be realistic for the fiscal year 2019 (previous forecast: 11.5 to 12.5 per cent).

The performance targets for the fiscal year 2020 (Group sales of more than EUR 600 million; EBITDA margin of at least 12 per cent) will not be realized. The guidance for the fiscal year 2020 will be announced together with the publication of the preliminary financials for the fiscal year 2019.

About SHW

The Company was established in 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 cars (including circuit boards) 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 lightweight 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, sites in Brazil (São Paulo) and China (Kunshan) and a sales and development centre in Toronto (Canada). With about 1.350 employees on average, the Company achieved Group sales of slightly above EUR 400 million in the fiscal year 2017. Further information is available at www.shw.de
 

Contact

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 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.

Note

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.