DGAP-News: UNIWHEELS AG / Key word(s): Half Year Results
UNIWHEELS AG: Strong volume and earnings growth, new plant started -
UNIWHEELS AG presents H1 financial results
10.08.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
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Strong volume and earnings growth, new plant started- UNIWHEELS AG presents
H1 financial results
- Strong volume growth of 10% to 4.3 million wheels sold
- Revenue growth +2,8% to EUR 109.1 million
- EBITDA growth by 30% to EUR 36,2 million,
- Net profit grows by 50%
- Influences by both aluminium prices and capitalized deffered taxes
- New plant in Stalowa Wola started - additional capacity of 500 thousand
wheels available in 2016, full capacity by early 2017, now.
- Outlook for 2016 - EBITDA guidance raised to a grow of 13%-18%, wheels
sales growth of 8%-12% and revenues growth of 4%-6% yoy
Bad Dürkheim, 10th August, 2016: Germany-based alloy wheels manufacturer
UNIWHEELS AG, listed on the Warsaw Stock Exchange, presented its financial
results for the first half of 2016.
In the first half of 2016 UNIWHEELS Group sold 4.3 million wheels in both
segments: Automotive and Accessory (in total an increase of 9.9% yoy).
"Demand development from car producers remains healthy and is still
growing. In H1 we gained additional market shares with European premium
producers and also increased volume with growing newer customers Suzuki and
Hyundai. Also value-added sales increased by bigger diameters and more
complex wheels" - says Dr. Thomas Buchholz, UNIWHEELS AG CEO
"Performance increases in the existing plant system as well as first
production from the new plant in Stalowa Wola allowed for strong volume
growth in H1 2016 of almost 10% to 4.3 millon wheels". - says Dr.
Wolfgang Hiller, UNIWHEELS COO, appointed to the Management Board in April
2016. Dr. Hiller is responsible for Operations and Accessory division.
"Accessory business was also a strong contributor in H1 with above average
growth of high-value brands like ATS and RIAL, but on the other hand price
reductions in early 2016 have a visible effect on revenues in this
division" - adds Dr. Wolfgang Hiller.
In the first half of 2016, UNIWHEELS generated EUR 233 million in revenues,
an increase of 2.8%, mainly influenced by wheels sales increase, better
product mix and quarterly price adjustments, based on lower prices of
aluminum compared to previous year. EBITDA increased to EUR 36.2 million
(+30.2% yoy) and the EBITDA margin improved significantly yoy by 3.4 pp to
16.2%. One of the key reasons behind this is aluminum price impact in the
first half of the year - in total material costs dropped by 11% in 1H 2016.
In this period EBIT increased by 38.5% yoy to EUR 25.3 million (and EBIT
margin improved by 3.3p.p to 12.7%).
Net profit improved significantly to EUR 29.1 million (+50.8% yoy).
"Q2 2016 was characterized by ramp-up cost for our new plant in Stalowa
Wola. But operational costs grew moderately - thanks to very strong
aluminium impact in this quarter, reflecting lower market prices.
Consequently material costs in the whole half year period dropped by 11%,
which allowed for EBITDA to grow to EUR 36.2 million, an increase of 30%,
comparing to H12015" - says Dr. Karsten Obenaus, UNWHEELS AG CFO. "Net
profit level was positively affected by income from capitalized deferred
taxes in Q2, which amounted in total to EUR 4.5 million, both from German
(Loss carried forward) and Polish operations (tax holidays, resulting from
start of operations is special economic zone)" - he explains.
After just under one year's construction, the new UNIWHEELS plant in
Stalowa Wola started to produce first wheels in June 2016 - ahead of
schedule.
UNIWHEELS expects that the new plant output will reach approx. 500,000 of
wheels in 2016. The second phase which allows to reach full capacity of 2
million wheels annually is advanced by one year - to early 2017. Now that
the new plant has gone into operation, UNIWHEELS deepens analysis and
evaluation of potential locations for the construction of fifth plant to
produce up to another 2 million wheels annually:
Outlook for 2016/2017
"2016 should be influenced by ongoing strong demand from European car
manufacturers. After the commencement of production in the new plant in
June, we target to increase wheels sales by 8-12% yoy. Also we expect the
Group's revenues to grow between 4% and 6%, due to lower than expected
aluminum prices in 1H" - says Dr. Karsten Obenaus.
"Stringent cost management in order to compensate ramp up costs for new
plant in Stalowa Wola are expected to show effects. Due to good opex
development in 1H, we raised our EBITDA guidance to a growth of 13% - 18%
yoy in 2016" - adds Dr. Obenaus.
"For the following years, we expect that the automotive sector in Europe
will remain healthy. Additional 2 mln wheels from new plant in Stalowa Wola
should bring significant economies of scale, with projection of no ramp up
costs from 2017. As a result we expect substantial earnings increases in
the following years - assuming a constant aluminium price situation - with
revenues of at least EUR 520 million and an EBITDA margin of approx. 16%" -
summarizes Dr. Thomas Buchholz.
Key financial figures of UNIWHEELS Group for 1H 2016:
<pre>
(in EUR mln unless 1H 2016 1H 2015 +/-
otherwise stated)
Revenue 223.0 217.0 +2.8%
Sales volume (thousand 4,269 3,884 +9,9%
units)
EBITDA 36.2 27.8 +30.2%
EBITDA margin (% of 16.2% 12.8% +3.4PP
revenue)
EBIT 28.4 20.5 +38.5%
EBIT margin (% of 12.7% 9.4% +3.3PP
revenue)
Net profit 29.1 19.3 +50.8%
Capital expenditures and 52.6 13.1 x4
investments
Personnel (headcount) 2,794 2,499 +11.8%
</pre>
Financial highlights 1H2016:
- Revenues increased by 2,8%, driven by:
- wheels sales increase of 10%
- product mix with higher value added (more complex surfaces, and
bigger sizes)
- quarterly price adjustments based on lower prices for aluminum
- Material costs significantly dropped by 11% reflecting LME and Premium
- Personnel costs reflects recruitment for new plant in (ramp-up costs)
+7.4%
- Other operating expenses stable
- EBITDA increased by 30.2% yoy to EUR 36.2 mln
- EBIT increased by 38.5% to EUR 28.4 mln
- EBITDA and EBIT margins significantly improved (to 16.2% and 12.7%
respectively)
- Lower interest and hedge valuation effects
- Net profit +50% yoy (including EUR 4.5 mln income from capitalized
deferred taxes)
About UNIWHEELS:
The UNIWHEELS Group is one of the leading manufacturers of aluminum wheels
for cars in Europe and is one of the few technology leaders worldwide in
the aluminum wheel industry.
UNIWHEELS is the third largest European supplier of OEM wheels for the
automotive industry as well as the market-leading manufacturer of alloy
wheels for the accessories market (AM) in Europe. Well-known Group brands
include ATS, RIAL, ALUTEC and ANZIO. The Group currently has four
production plants, three of which are in Poland (Stalowa Wola) and one in
Germany (Werdohl).
UNIWHEELS sees itself as one of the leading partners of the automotive
industry for the optimum reduction of CO2 emissions by reducing the weight
of alloy wheels. As well as weight-optimized construction methods, the
following procedures are primarily used: Flow Forming, Lightforming,
undercutting and forging.
Since 2015, UNIWHEELS AG is publicly listed on Main Market of Warsaw Stock
Exchange. The UNIWHEELS stock is floated under security identification
number A13STW, ISIN DE000A13STW4 and ticker symbol UNW.
For more information please contact:
Oliver Madsen
Head of Investor Relations
Email: o.madsen@de.uniwheels.com
UNIWHEELS AG
Gustav-Kirchhoff-Str. 10
67098 Bad Dürkheim
Germany
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Language: English
Company: UNIWHEELS AG
Gustav-Kirchhoff-Straße 10
67098 Bad Dürkheim
Germany
Phone: +49 (0)6322 9899 - 6400
Fax: +49 (0)6322 9899 - 6401
Internet: www.uniwheels.com
ISIN: DE000A13STW4
WKN: A13STW
Listed: Regulated Unofficial Market in Berlin; Open Market in
Frankfurt
End of News DGAP News Service
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490919 10.08.2016
DGAP-News: UNIWHEELS AG: Strong volume and earnings growth, new plant started - UNIWHEELS AG presents H1 financial results
| Source: EQS Group AG