United Power Technology AG
United Power Technology AG: On-going adverse market conditions continue to affect United Power’s business
United Power Technology AG / Key word(s): 9-month figures Financial results 9M 2014 United Power Technology AG: On-going adverse market conditions continue to affect United Power’s business – Revenues drop by 8.6 per cent to 77.1 million Euros – Decrease in gross profit margin triggers decline in profitability – Outlook for the full year 2014 confirmed Eschborn, Germany, November 13, 2014 – United Power Technology AG (United Power), one of the leading manufacturers of engine-driven power equipment in China, reports a decrease in revenues of 8.6 per cent to 77.1 million Euros in the first nine months 2014 (9M 2013: 84.3 million Euros). The result was expected due to the on-going industry consolidation process in China and accompanying price competition in the domestic market and is in line with the previous given guidance of the company. The difficult market environment has affected the business of United Power since the second half of 2013 and is expected to continue to prevail throughout 2014. Simultaneously, political conflicts especially in Russia, Syria and Iraq and related economic uncertainties have impacted United Power’s key markets in Europe, which also negatively affected the group’s revenues. Furthermore, with respect to the U.S. market, the decline in revenues is due to a relatively quiet hurricane season. The profitability of the group has been impacted by RMB price adjustment due to longer term appreciation of the RMB against the US-Dollar as well as higher fixed asset depreciation. Therefore, the group realized a gross profit for the reporting period of 13.7 million Euros, a decline of 19.9 per cent compared to the previous year (9M 2013: 17.2 million Euros). The gross profit margin amounted to 17.8 per cent (9M 2013: 20.3 per cent). At the same time the EBIT fell by 19.8 per cent to 10.9 million Euros in the first nine months 2014 (9M 2013: 13.6 million Euros), representing an EBIT margin of 14.2 per cent (9M 2013: 16.2 per cent). The groups profit declined by 30.6 per cent to 8.1 million Euros (9M 2013: 11.6 million Euros) resulting in a net profit margin of 10.5 per cent (9M 2013: 13.8 per cent). On the segment level United Power recorded a decline in revenues for the residential generators segment of 9.4 per cent to 31.1 million Euros year-on-year (9M 2013: 34.4 million Euros). A similar decrease was recorded in the commercial generator segment, which fell by 8.5 per cent to 41.1 million Euros (9M 2013: 44.9 million Euros). The outdoor power equipment segment remained relatively stable with a slight decrease of 1.27 per cent to 4.1 million Euros (9M 2013: 4.2 million Euros). In order to prepare for an upswing in the industry United Power has taken important steps in the third quarter 2014 for the further implementation of its three-pronged strategy for future growth. In October the group reached the final stage of completing the buildings of the production site in Gaoqi Industrial Park. Overall it adds four new four-story factory buildings with a total usable factory space of more than 45,000 sqm and one new dormitory to the current factory space. The total investment is expected to be around 20 million Euros this year – less than originally planned – as United Power carefully monitors the market environment to decide on the timing for investments into the new production lines. However, in the meantime, given the prime location of the production facilities in Gaoqi Industrial Park, not utilized factory space may be rented to third-party companies providing an attractive additional income stream. The completion of the additional factory space is expected for the end of November 2014. The first production lines are expected to commence operations during the year of 2015. In addition to that, the Management Board has also devised regional sales strategies and implemented different measures to support its sales forces. United Power also continued to update its product portfolio in order to maintain the breadth of its product range. Furthermore, the group continued to focus on expanding its outdoor power equipment segment. Altogether, United Power confirms the previously given guidance for 2014. United Power expects a decline in revenues possibly exceeding the decrease of 5.5 percentage points recorded in the first half of 2014. As far as profitability is concerned United Power expects a decline in gross profit and of the EBIT margin of a similar magnitude as in the first half-year of 2014. Please use the following link to read the complete 9 months report 2014 of United Power Technology AG: http://www.unitedpower.de.com/en/ip_node/4 About United Power Technology Group United Power Technology Group designs, develops, manufactures and sells engines and an extensive range of engine-driven power equipment, including generators, outdoor power equipment, as well as components. Its major products comprise residential as well as commercial generators, which are currently delivered to end users in around 70 countries around the world. The operational companies of United Power Technology Group are incorporated under the laws of the People’s Republic of China and located in Fuzhou and Shanghai, China. For further requests please contact: Disclaimer concerning prognoses Contact: Kirchhoff Consult AG Dr. Kay Baden Herrengraben 1 D-20459 Hamburg T +49 40 60 91 86 39 F +49 40 60 91 86 16 baden@kirchhoff.de 13.11.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | United Power Technology AG | |
Mergenthalerallee 10-12 | ||
65760 Eschborn | ||
Germany | ||
Phone: | +49 6196 400804 | |
Fax: | +49 6196 400910 | |
E-mail: | oliver.kuan@unitedpower.cn | |
Internet: | www.unitedpower.de.com | |
ISIN: | DE000A1EMAK2 | |
WKN: | A1EMAK | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart | |
End of News | DGAP News-Service |
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