DGAP-Ad hoc: SHW AG

DGAP-Adhoc: SHW AG: Reduction of sales forecast for 2016 - operating profit for the year still within target range

SHW AG / Key word(s): Forecast/Change in Forecast

26.07.2016 19:28

Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Aalen, Germany, 26 July 2016. Based on the current information regarding the expected business development in the third and fourth quarter of 2016, the Management Board of SHW AG has come to the conclusion that that the previous forecast for Group sales in the amount of EUR 440 million to EUR 460 million for the fiscal year 2016 can presumably no longer be achieved.

SHW is adjusting its sales forecast for 2016 and 2017 by around EUR 30 million to reflect the reticence currently shown by individual customers. SHW AG now expects Group sales of between EUR 410 million and EUR 430 million for 2016 and 2017 (previously EUR 440 million to EUR 460 million each). It is forecasting sales in 2016 of between EUR 320 million and EUR 340 million in its Pumps and Engine Components business segment (previously EUR 340 million to EUR 360 million) and sales of around EUR 90 million in its Brake Discs business segment (previous year EUR 98 million), taking into account lower material surcharges.

Despite the reduced sales forecast, the Company continues to expect a year- on-year improvement in the operating earnings margin and adjusted EBITDA at the lower end of the predicted EUR 43 million to EUR 47 million range in 2016. In particular, this reflects the positive effects of the implementation of the efficiency-boosting measures to improve business processes in both business segments.

Due to a number of major new orders and the successful development of product applications for battery-powered electric vehicles, the Company is confident of achieving the 2020 sales target of EUR 630 million to EUR 660 million as well as an EBITDA margin of at least 12 per cent.

26.07.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

--------------------------------------------------------------------------- Language: English Company: SHW AG Wilhelmstrasse 67 73433 Aalen Germany Phone: +49 7361 502-1 Fax: +49 7361 502-674 E-mail: ir@shw.de Internet: www.shw.de ISIN: DE000A1JBPV9 WKN: A1JBPV Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------