EANS-News: SHW AG confirms positive outlook for 2012

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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
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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