HWA AG exceeds targets for 2017

Affalterbach, 26 April 2018 – HWA AG slightly exceeded its own expectations for 2017. The forecasts had specified a total operating performance of between EUR 80 million and EUR 85 million and an EBIT margin of around 2.5%. In 2017, the total operating performance reached a level of EUR 97.5 million after EUR 100.4 million in the previous year. The anticipated decline in the total operating performance was therefore less substantial than expected. At EUR 97.5 million, sales stabilised at around the previous year’s level of EUR 97.4 million. As expected, HWA AG managed to return to profitability in 2017. EBIT increased significantly from EUR 0.2 million to EUR 2.8 million in 2017. The EBIT margin was slightly higher than expected at 2.9%. Net profit improved significantly from EUR 0.3 million to EUR 1.4 million. After a disappointing 2016, the development of the figures in 2017 was encouraging overall.

In the motor racing (DTM and Formula 3 engines) business unit, sales decreased year-on-year in 2017 in line with planning. The vehicles and vehicle components business unit developed somewhat better than planned, particularly in the second half of the year. Deliveries of the Mercedes-AMG GT3 remained at a good level after substantial increases in the previous years. The cooperation with Mercedes-AMG GmbH was continued with a development contract for the Mercedes-AMG GT4. The first deliveries were made in the final weeks of 2017. There is strong interest in GT4 race cars, which address an even larger target group of amateur and professional drivers and teams.

The notification received by HWA AG in summer 2017 that Daimler AG would not continue its motorsports activities in the DTM racing series after 2018 was undoubtedly negative. As announced, however, this did not have any impact on the figures for 2017. No negative impact is expected for 2018, either. The management of HWA AG is intensively examining the implementation of other projects in the field of motor racing to at least partially compensate for the decline in sales from the DTM from 2019 onwards. The Management Board of HWA AG is very confident that it will be able to report on the implementation of other projects in the field of motor racing in the coming weeks.

In the past few years, the company has recorded strong growth in the vehicles and vehicle components business unit. The company is now generating sales of almost EUR 100 million. Five years ago, sales only amounted to around EUR 60 million. This substantial growth requires significantly higher working capital than was needed just a few years ago. Factors influencing the higher capital requirements include the production of the Mercedes-AMG GT3 and GT4, the parts supply for the AMG customer sports team and other customer projects. For this reason, the Management Board of HWA AG has decided not to propose any dividend to the Annual General Meeting for 2017 and to suspend the dividend payment again. The Supervisory Board has agreed to this proposal by the Management Board.

HWA AG is also announcing that the company has prepared consolidated financial statements in accordance with the German Commercial Code (HGB) for the first time for 2017. There are no prior-year figures for these financial statements. For the Group, the Management Board of HWA AG expects the total operating performance to increase in 2018. As before, this increase will be driven by the vehicles and vehicle components business unit. The Group’s EBIT is expected to improve considerably in comparison to 2017. In 2017, the HWA Group generated sales of more than EUR 96 million and EBIT of EUR 1.9 million. In the separate financial statements, HWA AG anticipates a stable sales development and also a significant increase in EBIT. At present, the prospects for 2018 are good for HWA AG. The positive trend from 2017 is expected to continue this year.

HWA AG will publish its annual and consolidated financial statements for 2017 in May 2018.


Investor Relations/Press
Volker Glaser
Benzstrasse 8
71563 Affalterbach, Germany
Tel.: + 49/ (0) 7144/ 8717- 279
Fax: + 49/ (0) 7144/ 8718- 111

HWA AG profile:

Top performance and determination to win – that is the philosophy of HWA AG. The team has been active in international motorsport for nearly five decades and is one of the most successful teams of all time. As a sought-after development partner, HWA AG bundles its expertise for more victories on the racetrack.

HWA AG has existed in its current form since 1998. Hans Werner Aufrecht founded AMG, the customisation specialist for the Mercedes-Benz brand, in 1967. At the end of 1998, Aufrecht sold the original AMG Motorenbau- und Entwicklungsgesellschaft mbH to Daimler AG. As part of this sale, the motor racing business units, today’s Mercedes-AMG DTM team and parts of the vehicles/vehicle components unit were spun off and transferred to HWA AG. At the end of 2006, the company was converted from a limited liability company to a stock corporation; HWA AG was floated on the stock market in April 2007.

Today, HWA AG’s motor racing segment is responsible for the popular DTM touring car racing series. On behalf of Mercedes-Benz Motorsport, HWA AG takes on all activities as a full-service provider, including the development and construction of Mercedes-Benz DTM racing cars and the operation of the racing team. The vehicles/vehicle components business unit includes the development and production of vehicles and components for automotive manufacturers in the premium segment. HWA AG has further expertise in the development, manufacture and servicing of Formula 3 racing engines. The GT3 racing version of the Mercedes-Benz SLS AMG was developed and produced by HWA AG in close cooperation with Mercedes-AMG. The follow-up project, the Mercedes-AMG GT3, has been delivered to customer teams all over the world since December 2015. Since December 2017, the Mercedes-AMG GT4 has been delivered.