EANS-News: SHW AG reports rising sales and earnings

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9-month report

Aalen (euro adhoc) - Group sales grew by 7.1 percent to EUR 253.1
million between January and September 2012 - Earnings before
interest, taxes, depreciation and amortisation (EBITDA) up 13.5
percent to EUR 27.8 million - Proceeds from the sale of Canadian
joint venture STT amount to approximately EUR 42 million - New credit
agreement with a volume of EUR 60 million and a 5-year term

Aalen, 8 November 2012. SHW AG, one of the leading suppliers of
CO2-relevant pumps and engine components as well as brake discs,
remained on the growth track also during the third quarter of 2012.
Group sales based on continuing operations (excluding STT) improved
by 7.1 percent to EUR 253.1 million (previous year: EUR 236.4
million) during the first nine months of 2012. This growth is mainly
attributable to a large number of production start-ups and relatively
stable demand for automotive pumps on the part of SHW customers.

Group earnings before interest, taxes, depreciation and amortisation
(EBITDA) for the first nine months of 2012 rose by EUR 3.3 million or
13.5 percent to EUR 27.8 million compared to the prior-year period.
At 11.0 percent, the EBITDA margin exceeded the prior year level of
10.3 percent. Earnings after taxes from continuing operations
amounted to EUR 12.4 million in the reporting period (previous year:
EUR 11.9 million). Earnings per share amounted to EUR 2.12 (previous
year: EUR 2.06).

"Thanks to our CO2-relevant products we have been able to stay on the
growth track even amidst a considerable decline in European vehicle
production," said CEO Dr. Wolfgang Krause, who is in charge of the
Pumps and Engine Components business segment. "The 2020 carbon
targets recently decided by the European Commission provide a basis
for further profitable growth of SHW."

Proceeds from STT sale to be used towards acquisitions or a special
dividend

The sale of the 50 percent stake in STT Technologies Inc., Canada,
generated proceeds equivalent to EUR 42 million for SHW, resulting in
a book profit before taxes of approximately EUR 40 million in the
fourth quarter of 2012. The transaction was successfully completed in
late October 2012.

"Basically we are looking at two options for the use of the sale
proceeds, namely a major acquisition or a partial payout in form of a
special dividend," said Dr. Wolfgang Krause. The company also intends
to reinvest part of the proceeds in organic growth as well in the
development of important auto markets such as Brazil, China and North
America. In the latter market the company intends to clearly expand
its existing business in the Truck and Off-Highway division.

New credit agreement ensures long-term refinancing

SHW AG will replace early the existing financing agreement with a new
syndicated loan which will secure its future business development and
growth strategy long term.

The new credit agreement with a volume of EUR 60 million and a
five-year term was agreed with a consortium of five banks, with
UniCredit Bank AG acting as Mandated Lead Arranger and Coordinating
Bookrunner. The consortium also includes Commerzbank AG,
Kreisparkasse Ostalb, SEB AG and Baden-Württembergische Bank.

"This new long-term syndicated loan, which can also be utilized for
acquisitions, provides a solid financial basis for our planned growth
programme," CFO Oliver Albrecht emphasises.

Brake Discs business segment continues its positive earnings trend

The third quarter saw further improvements in the profitability of
the Brake Discs business segment through ongoing efficiency-enhancing
measures and the improved product mix. At EUR 68.0 million, sales
were approximately at the prior-year level of EUR 69.2 million.
Earnings before interest, taxes, depreciation and amortisation
(EBITDA) showed a clear year-on-year improvement by 23.3 percent to
EUR 4.4 million (previous year: EUR 3.6 million). The EBITDA margin
improved from 5.1 percent to 6.5 percent.

Compared to the prior-year period, the Pumps and Engine Components
business segment increased its sales in the first nine months of 2012
by 10.7 percent to EUR 185.1 million (previous year: EUR 167.2
million), with the Passenger Car division growing its sales by 12.0
percent to EUR 126.8 million. Growth was driven by high demand for
variable oil pumps and start-stop pumps as well as the production
start of an oil/vacuum pump. Nine-month earnings before interest,
taxes, depreciation and amortisation (EBITDA) in the Pumps and Engine
Components business segment increased despite start-up costs by EUR
2.1 million or 9.7 percent to EUR 24.1 million compared to the
prior-year period. At 13.0 percent, the EBITDA margin was on par with
the previous year.

Outlook on full-year 2012

SHW's numerous production start-ups and its advantageous customer
structure helped the company clearly outperform the underlying
European automotive market during the first nine months of 2012.
Against the background of the strong nine-month figures, SHW
continues to expect slight growth for the full year 2012. Group sales
in October exceeded the previous year figure. "However, there is an
uncertainty about the production down time of our customers at the
end of the year," said Dr. Wolfgang Krause. "Based on our continuing
operations, we anticipate group sales in the region between EUR 318
million and EUR 325 million compared to previous year level of EUR
317 million. Our EBITDA margin at group level will likely meet prior
year's level of approximately 10 percent."

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. With more than 1,000
employees, the SHW Group generated sales from continuing operations
in 2011 of approx. EUR 317 million. 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