EANS-News: SHW AG reports successful start into the financial year 2012

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3-month report

Aalen (euro adhoc) - Group sales grow by 13.6 percent to EUR 100.5
million in Q1 2012 - Group earnings before interest and taxes (EBIT)
climb 25.8 percent to EUR 7.9 million - Net income for the period up
by 70.5 percent to EUR 5.2 million

Aalen, 8 May 2012. SHW AG, one of the leading suppliers of
CO2-relevant pumps and engine components as well as brake discs,
could seamlessly tie in with the positive development of the 2011
financial year in the first three months of 2012. Group sales and
Group net income for the period both reached new record levels.

Group sales improved by 13.6 percent to EUR 100.5 million (previous
year: EUR 88.5 million). This growth is attributable to a large
number of production start-ups and the stable demand of the SHW
customers. Group earnings before interest and taxes (EBIT) in the
January to March 2012 period were up by EUR 1.6 million on the
previous year* to EUR 7.9 million. At 7.8 percent, the EBIT margin
clearly exceeded the prior year level of 7.1 percent. Net income for
the period rose by 70.5 percent to EUR 5.2 million (previous year:
EUR 3.1 million). Earnings per share amounted to EUR 0.89 (previous
year: EUR 0.55).

"We are pleased with the successful start into the new financial
year," said CEO Dr. Wolfgang Krause, who is in charge of the Pumps
and Engine Components business segment. "Demand for SHW products that
help to reduce CO2 emissions shows a particularly positive trend."

Investments in growth stay at high level

Due to upcoming production start-ups, investments climbed from EUR
3.3 million to EUR 4.9 million in the first quarter of 2012. At the
same time, spendings on research and development increased by EUR 0.3
million to EUR 1.8 million.

"In spite of these high investments, we were able to generate a
return on capital employed (ROCE) of 28.3 percent, which clearly
exceeds the industry average and our cost of capital," emphasised CFO
Oliver Albrecht. "The equity ratio improved from 24.0 percent in the
previous year to 33.7 percent."

Pumps and Engine Components business segment remains main growth
driver

Sales in the Pumps and Engine Components business segment increased
by 22.2 percent from the previous year's EUR 63.3 million to EUR 77.4
million. Reporting a 27.1 percent increase in revenues to EUR 61.6
million, the Passenger Car division benefited from the high demand
for variable oil pumps and start-stop pumps as well as numerous
production start-ups. Between January and March 2012, earnings before
interest and taxes (EBIT) in the Pumps and Engine Components business
segment increased by EUR 1.3 million on the prior year period to EUR
7.2 million. The EBIT margin improved moderately from 9.3 percent to
9.4 percent despite significantly higher depreciation and
amortisation.

Sales in the Brake Discs business segment dropped by 8.1 percent to
EUR 23.1 million (previous year: EUR 25.2 million). In this context,
it should be considered that the prior year figure included a very
large spare parts order. Earnings before interest and taxes (EBIT)
declined by EUR 0.3 million to EUR 0.6 million. "The start-up
problems of the new production line have been eliminated in the
meantime," said Andreas Rydzewski, member of the Management Board and
in charge of the Brake Discs business segment. "Should the capacity
utilisation be permanently good, we still expect a noticeable result
improvement in 2012."

Guidance confirmed

The acute risks to the global economy declined in the first quarter
compared to last autumn. "The stable demand of our customers and the
numerous start-ups make us optimistic that we will reach the target
we have set ourselves for this year," said Dr. Wolfgang Krause. "We
believe that we will be able to generate Group sales of between EUR
365 and 390 million". The guidance for the full year will be put into
more precise terms at the six-month stage.

*In the first three months of the previous year, EBIT was adjusted by
IPO costs and depreciation arising from the purchase price allocation
in the amount of EUR 1.2 million.

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
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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