DGAP-News
SHW AG: Strategy 'SHW 2020': Returning to the path of profitable growth
DGAP-News: SHW AG / Key word(s): Results Forecast
SHW AG: Strategy 'SHW 2020': Returning to the path of profitable growth
01.12.2015 / 07:52
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
SHW AG: Strategy 'SHW 2020': Returning to the path of profitable growth
01.12.2015 / 07:52
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
PRESS RELEASE
Strategy "SHW 2020": Returning to the path of profitable growth
- Improving operational excellence, expanding international presence and
strengthening of the technological and innovative leadership have
priority
- Two-year period of consolidation and higher investments to be followed
by phase of sustainable and profitable growth starting in 2018
- Sales to rise to approx. EUR 630 to EUR 660 million by 2020 accompanied
by significantly higher profitability
Aalen, 1 December 2015. SHW AG, one of the leading automotive suppliers of
CO2-relevant pumps and engine components, as well as composite brake discs,
today presented its "SHW 2020" strategy. The company is targeting a return
to profitable growth by improving its operational excellence, expanding its
international presence and strengthening its technological and innovative
leadership. As indicated, fiscal years 2016 and 2017 will represent a phase
of sales consolidation and higher investments with sequentially better
profitability. The Company expects to report sharply growing sales and
earnings starting in 2018. The target is to increase sales to EUR 630 to
EUR 660 million by 2020. The EBITDA margin is expected to rise to at least
12 per cent during the same period.
Over the past several months, the Company's strategy underwent an extensive
examination by the Management Board given the market and industry trends
and changes in the Company's management. "We have identified the challenges
that need to be tackled and have developed the appropriate action plans and
solutions", said Dr. Frank Boshoff, Chief Executive Officer of SHW AG. "SHW
will be more efficient, more international and even more innovative in the
future. All prerequisites to achieve a lasting, profitable growth on our
own in the years to come have been created. I am thoroughly convinced that
from 2018 significantly increasing sales will give us the tailwind to 'take
off' ".
SHW profits from industry trends
SHW benefits from three important trends in the automotive industry:
- Global demand for mobility continues to grow. Forecasts predict that
global production of so-called light vehicles (vehicles < 6t) will rise
on average by 3 per cent per year until 2020 to roughly 103 million
units. The strongest growth is expected in China and Europe.
- In absolute terms, combustion engines will continue to power the vast
Strategy "SHW 2020": Returning to the path of profitable growth
- Improving operational excellence, expanding international presence and
strengthening of the technological and innovative leadership have
priority
- Two-year period of consolidation and higher investments to be followed
by phase of sustainable and profitable growth starting in 2018
- Sales to rise to approx. EUR 630 to EUR 660 million by 2020 accompanied
by significantly higher profitability
Aalen, 1 December 2015. SHW AG, one of the leading automotive suppliers of
CO2-relevant pumps and engine components, as well as composite brake discs,
today presented its "SHW 2020" strategy. The company is targeting a return
to profitable growth by improving its operational excellence, expanding its
international presence and strengthening its technological and innovative
leadership. As indicated, fiscal years 2016 and 2017 will represent a phase
of sales consolidation and higher investments with sequentially better
profitability. The Company expects to report sharply growing sales and
earnings starting in 2018. The target is to increase sales to EUR 630 to
EUR 660 million by 2020. The EBITDA margin is expected to rise to at least
12 per cent during the same period.
Over the past several months, the Company's strategy underwent an extensive
examination by the Management Board given the market and industry trends
and changes in the Company's management. "We have identified the challenges
that need to be tackled and have developed the appropriate action plans and
solutions", said Dr. Frank Boshoff, Chief Executive Officer of SHW AG. "SHW
will be more efficient, more international and even more innovative in the
future. All prerequisites to achieve a lasting, profitable growth on our
own in the years to come have been created. I am thoroughly convinced that
from 2018 significantly increasing sales will give us the tailwind to 'take
off' ".
SHW profits from industry trends
SHW benefits from three important trends in the automotive industry:
- Global demand for mobility continues to grow. Forecasts predict that
global production of so-called light vehicles (vehicles < 6t) will rise
on average by 3 per cent per year until 2020 to roughly 103 million
units. The strongest growth is expected in China and Europe.
- In absolute terms, combustion engines will continue to power the vast
Aktuelle Themen
Weitere Artikel des Autors
1 im Artikel enthaltener WertIm Artikel enthaltene Werte