HWA AG generates record sales in 2018
  • Record sales in 2018
  • Sales and earnings targets met
  • Solid guidance for 2019
  • Capital increase placed in full
  • Dividend proposed at 37 cents per share for 2018

Affalterbach, 26 April 2019 – HWA AG generated record sales in 2018, slightly outperforming own expectations and with earnings just meeting the target. Sales topped the EUR 100 million mark for the first time in the motor racing company’s history with Group sales totalling EUR 101.2 million in 2018, up on EUR 96.3 million in the previous year. HWA AG’s gross revenue hit a new record high at EUR 112.9 million after posting EUR 97.4 million in 2017. Consolidated EBIT improved from EUR 1.9 million to EUR 5.3 million, in line with planning. This corresponds to an EBIT margin in relation to gross revenue of 4.7%, slightly short of the target of at least 5%. Consolidated earnings before interest and taxes improved by EUR 0.5 million to EUR 3.4 million.

All in all, 2018 was a successful year for HWA AG. Both segments, motor racing and vehicles/vehicle components, played a role in the good business development in 2018. In sporting terms, the company enjoyed a major success in the DTM, winning the drivers’, team and manufacturers’ championship in 2018. After more than 30 years of highly successful collaboration with Daimler AG in the DTM, Mercedes-Benz’s DTM era with HWA AG came to an end at the close of the financial year. In December 2018, HWA AG made its motor racing debut in Formula E. The vehicles and vehicle components segment continued to grow, driven by ongoing collaboration with Mercedes-AMG GmbH in its customer sports activities and the delivery of the Mercedes-AMG GT4. This race car is directed at a larger target group of amateur and professional drivers and teams. The project is continuing to develop successfully.

HWA AG is confident that it will maintain 2018’s positive trend. One challenge the company will face in 2019 is making up for the loss of significant revenues in motorsports activity in the DTM racing series. The Management Board is currently confident that this can be comfortably offset by new sources of revenues. For example, significant sales are expected to arise from participation in the Formula E racing series. HWA AG is also taking part in the Formula 3 racing series with its own team and in Formula 2 with a cooperation partner. In 2019, the company will also participate in the DTM via the joint venture Vynamic GmbH. A further upturn in sales is expected this year in vehicles/vehicle components.

The current motor racing environment remains good. The company has not yet been affected by negative developments in the automotive industry as a whole. HWA AG expects consolidated sales to continue to improve in 2019, impressive considering the loss of all sales with Daimler AG in the DTM. EBIT is set to improve further this year in HWA AG’s separate financial statements. In terms of operating activities, however, the partial consolidation of Vynamic GmbH will have an adverse effect on consolidated EBIT in 2019. The joint venture will still post an operational loss in its first year. Profit contributions are expected by 2020, which should have a positive impact on consolidated EBIT next year.

HWA has boosted its total sales by almost 60% over 10 years, although the motor racing segment did not see any growth in this period. As part of this growth and in order to strengthen equity, in December 2018 the Management Board made the decision to increase capital by up to 10% of share capital. This is the first corporate action since the company was listed on the Frankfurt Stock Exchange in April 2007. There was no capital increase associated with the stock market flotation at the time. This capital increase was completed in April. A total of 511,500 new shares were placed at a price of EUR 13.87 per share. The offering generated gross income of almost EUR 7.1 million, which passed almost entirely to HWA AG thanks to the low costs incurred in connection with this corporate action. The capital increase was taken up by Aufrecht GmbH and Dörflinger Management & Beteiligungs GmbH (“DMB”). Aufrecht GmbH is represented by Hans Werner Aufrecht and DMB by Willibald Dörflinger. Both men are already major shareholders at HWA AG and are also members of the company’s Supervisory Board.

On the basis of previous company dividend policy which states that up to 50% of net profit for the year is to be paid out to shareholders, the Management Board and the Supervisory Board of the company will propose a 2018 dividend of 37 cents per share to the Annual General Meeting.

HWA AG will publish its annual and consolidated financial statements for 2018 in May 2019.


Investor Relations/Presse
Volker Glaser
Benzstraße 8
71563 Affalterbach
Phone: + 49/ (0) 7144/ 8717- 279
Fax: + 49/ (0) 7144/ 8718- 111

About HWA AG

HWA AG is an independent, 360 engineering specialist in the fields of automobile racing and high-performance cars. Formed in 1998 by Hans Werner Aufrecht, the company is based in Affalterbach (Germany) and employs around 300 highly-qualified members of staff. HWA AG offers all its products and services under the corporate slogan ENGINEERING SPEED: The company's objective is to develop the best possible high-quality solutions, in order to get its partners and customers to their destination quicker. The portfolio of services ranges from designing all vehicle components to assembling complete cars, together with the relevant logistics, after-sales and support services.