News

21.08.2014

HWA AG: first half 2014 results below expectations

Affalterbach, 20 August 2014 – HWA AG’s preliminary results for the first six months of 2014 show sales revenues of EUR 37.9 million, as compared with EUR 29.4 million for the same period last year. The revenue growth was principally attributable to the motor racing business. Following several years of restrictions, at the end of the 2013 season the ban on race car development was lifted. Under the current DTM regulations the manufacturers enjoy the freedom to carry out extensive development work on their cars. In the 2014 season Mercedes-Benz is racing seven rather than six cars in the DTM, which accounts for the overall increase in turnover. As was expected, sales of vehicles and vehicle components remained stable.

 

However, HWA AG’s earnings indicators for the first half of 2014 were down in comparison with the same period last year. EBIT fell from EUR 2.1 million to EUR 0.9 million. Profit after interest and tax came to EUR 0.5 million, after EUR 1.5 million in first the half of 2013.

 

While performance of the vehicles and vehicle components business was in line with the Management Board’s expectations, the considerable additional expenses in motor racing led to a decline in earnings. DTM is top level motor sport, and given its very competitive nature, HWA AG is heavily involved in development activities and will exploit the possibilities to the full. Following a disappointing start to the season at Hockenheim, unscheduled additional expenditure became necessary to make up for the weak performance. This was reflected in the earnings.

 

Based on analysis of the figures for the first half of 2014 and the budget for the second half, HWA AG expects a profit for the year as a whole, but EBIT and net profits will be considerably less than they were in 2013. Sales revenues, on the other hand, are expected to be slightly higher.

 

 

Contact

 

Investor relations / Press
HWA AG
Benzstrasse 8
D-71563 Affalterbach, Germany
Phone + 49 (0) 7144/8717-279
Fax + 49 (0) 7144/8718-111
ir@hwaag.com
www.hwaag.com

 


HWA AG


HWA AG was founded in 1998 as a spin-off from AMG, which was established in 1967 by Hans Werner Aufrecht as the Mercedes Benz customisation specialist. Towards the end of 1998 Aufrecht sold a majority interest in AMG Motoren- und Entwicklungsgesellschaft mbH, as it then was, to Daimler AG. In the process of disposal, motor racing – what is today the AMG-Mercedes team in the German Touring Car Championship (DTM) – and parts of the vehicles and vehicles components business were spun off and transferred to HWA AG. In the motor racing business, HWA AG acts as a full service provider to Daimler AG Motorsport in the DTM. It is responsible for the whole process of development and construction of the racing cars, including the engines, together with all other activities involved in the racing team’s operations. In its vehicles and vehicles components business, it develops and builds cars and vehicle components for the automobile industry. Since 2003 HWA AG has been producing and servicing racing engines for the Formula 3 Euroseries and the British Formula 3 Series.