SHW AG, a supplier of engine components as well as composite brake discs, reported Q1 group sales of €106.6 million, a decrease from the Q1 2015 figure of €117.0 million.
‘Our measures to boost productivity are paying off,’ says Dr Frank Boshoff, CEO of SHW AG, commenting on the figures. ‘By consistently implementing productivity-boosting measures, we have eliminated the operational and logistical bottlenecks at our Aalen-Wasseralfingen plant. We have thereby established the basis for a continuous improvement in profitability in our pumps and engine components business segment.’
Over the last few years, to help safeguard the future, SHW AG has invested in capacity and productivity-boosting production facilities and the establishment and expansion of international plants in North America, South America and China. As a result, depreciation increased in comparison to the previous year. The quarterly profit declined accordingly by 19% to €3.3 million compared to €4.1 million in Q1 2015.
Boosting productivity
The powder metallurgy segment closed the first quarter of 2016 with consolidated sales of €7.3 million, down from €8.0 million in Q1 2015.The pumps and engine components business segment reported sales of € 85.9 million in the first three months of 2016 (2015: €92.5 million), while revenue in the passenger car segment declined from € 77.0 million to € 71.2 million. Despite the decline in sales, the pumps and engine components business segment recorded improved adjusted EBITDA of €9.5 million in the period under review (previous year: €9.3 million). Measures to boost productivity in powder metallurgy were implemented as scheduled at the AalenWasseralfingen plant at the end of the first quarter 2016.
Assuming a stable orders situation, SHW AG expects group sales of between €440 million and €460 million for 2016. It is forecasting sales of between €340 million and €360 million in its pumps and engine components business segment and sales close to the previous year’s level in its brake discs business segment, assuming similar scrap prices.
This story uses material from SHW AG, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
