DGAP-News: United Power Technology AG / Key word(s): Half Year Results United Power Technology AG further improves profitability 14.08.2013 / 08:00 --------------------------------------------------------------------- - Revenue growth by 9.0 per cent to 56.3 million Euros - EBIT margin improved to 17.4 per cent - Commercial generator segment continues to be strong - Outlook 2013 confirmed despite challenging economic environment Eschborn, Germany, August 14, 2013 - United Power Technology Group, one of the leading manufacturers of engine-driven power equipment in China, continued its profitable growth the first half of 2013: Revenues were driven by higher sales in the commercial generator segment and reached 56.3 million Euros, an increase of 9.0 per cent compared to the same period last year. The company recognized particularly strong growth in its domestic market China as well as other emerging markets. The growth in China was mainly due to government stimuli earlier in the year, which led to higher construction activity and therefore a higher demand for engine-driven power equipment. Gross profit grew by 12.7 per cent to 11.6 million Euros in the first half of 2013 and thus at a higher rate than revenues. Compared to the first half of 2012 United Power's gross profit margin increased by 0.7 percentage points to 20.7 per cent. This was mainly due to increased sales in the commercial segment where margins tend to be higher as well as greater capacity utilization compared to the same period last year. United Power's profit from operations (EBIT) grew by 14.6 per cent to 9.8 million Euros, reflecting the increase in gross profits. This resulted in an EBIT margin of 17.4 per cent for the first half of 2013, which compares to 16.5 per cent in the same period of 2012. United Power's profit for the period also grew by 13.4 per cent to 8.4 million Euros. Accordingly, earnings per share (EPS) in the first six months of 2013 were 0.68 Euros, an increase of 13.3 per cent year-on-year. The company's largest segment, commercial generators, again grew strongly in the first half 2013: Revenues increased by 27.7 per cent to 31.6 million Euros. This is in line with the Company's strategy of increasingly focusing on generators with higher output and larger engine sizes. Revenue from residential generators has decreased by around 9.2 per cent to 21.3 million Euros. The outdoor power equipment segment generated 2.9 million Euros compared to last year's revenue of 2.8 million Euros. Outlook: Challenging economic environment expected The overall economic environment remains more challenging than expected by the Company earlier in the year. The outlook for the domestic Chinese market was recently dampened due to the further deceleration in growth in the second quarter this year. Against this background, while United Power confirms its guidance - 8 per cent revenue growth and an EBIT margin in line with the year 2012 - the downside risk of achieving the company's targets has somewhat increased compared to earlier this year. However, the company's Management Board remains confident about its medium and long term growth and earnings prospects as the demand for its products is driven by a number of factors including general economic growth, changing consumer lifestyles and the accompanying demand for mobile and reliable sources of electricity. In addition, there are increasing supply uncertainties and disruptions due to ageing or failing grids and natural disasters. United Power strives to continue gaining competitive advantages vis-a-vis its competitors through innovation, process improvements and overall strengthening of the company. The full half-year report 2013 of United Power Technology AG is available under: http://www.unitedpower.de.com/en. 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 more than 60 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: Kirchhoff Consult AG Dr. Kay Baden T: +49 40 60 91 86 39 F: +49 40 60 91 86 60 E-Mail: [email protected] or visit www.unitedpower.de.com Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect United Power's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of United Power's forward-looking statements are proving to be incorrect, United Power's actual results may be materially different from those expressed or implied by such forward-looking statements. United Power does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. End of Corporate News --------------------------------------------------------------------- 14.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's 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: [email protected] 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 --------------------------------------------------------------------- 225715 14.08.2013