HWA AG LOSES MAJOR MOTORSPORT PROGRAM
Jul 24, 2017
At present, the Management Board is unable to provide a statement regarding the impact on earnings in the 2019 financial year. This is due to the fact that HWA AG intends to implement corresponding measures on the cost side to mitigate the effects.
The revenue and operating earnings (EBIT) forecast for the 2017 financial year is initially unaffected by the termination of the DTM activities from 2019 onwards.
However, potential balance sheet effects and the resulting impacts on earnings in connection with the discontinuation of the DTM program cannot be entirely ruled out. At present, these effects cannot yet be quantified. The balance sheet effects are expected to be non-cash in nature.
In principle, the Management Board is intensifying its efforts to pursue other motorsport projects in order to at least partially compensate for the expected decline in revenue from 2019 onwards.
Contact:
Investor Relations / Press
HWA AG
Volker Glaser
Benzstraße 8
71563 Affalterbach
Germany
Phone: +49 (0) 7144 8717-279
Fax: +49 (0) 7144 8718-111
E-mail: ir@hwaag.com
Company Profile of HWA AG
Outstanding performance and an uncompromising will to win – this is the philosophy of HWA AG. For almost five decades, the team has been active in international motorsport and is regarded as one of the most successful organizations in the industry. As a highly sought-after development partner, HWA AG combines its expertise to achieve further success on racetracks around the world.
HWA AG has existed in its current form since 1998. Hans Werner Aufrecht founded AMG, the performance 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 transaction, the motorsport activities, today’s Mercedes-AMG DTM Team, and parts of the Vehicles/Vehicle Components division were separated and transferred to HWA AG. At the end of 2006, the company was converted from a limited liability company into a stock corporation and was listed on the stock exchange in April 2007.
Today, HWA AG is responsible for Mercedes-Benz’s activities in the DTM touring car championship within the Motorsport segment. Acting as a full-service provider on behalf of Mercedes-Benz Motorsport, HWA AG manages all aspects of the program, including the development and construction of Mercedes-Benz DTM race cars as well as operation of the racing team.
The Vehicles/Vehicle Components division focuses on the development and production of vehicles and components for premium automotive manufacturers. For example, the GT3 racing version of the Mercedes-Benz SLS AMG was developed and produced by HWA AG in close cooperation with Mercedes-AMG. Its successor project, the Mercedes-AMG GT3, has been delivered to customer teams around the world since December 2015.
HWA AG also possesses extensive expertise in the development, production and support of Formula 3 racing engines.