DGAP-News: United Power Technology AG / Key word(s): Final Results United Power Technology AG: Financial results 2014 impacted by adverse market conditions 29.04.2015 / 11:01 --------------------------------------------------------------------- Results 2014 United Power Technology AG: Financial results 2014 impacted by adverse market conditions - Revenues dropped by 7.8 per cent to 95.6 million Euros year-on-year - EBIT margin decreased by 3.9 percentage points to 9.5 per cent in 2014 - Cautious outlook for 2015 Eschborn, Germany, 29 April 2015 - United Power Technology AG (United Power), one of the leading manufacturers of engine-driven power equipment in China, weathered a challenging year 2014. The company generated revenues of 95.6 million Euros over the course of 2014, a decline of 7.8 per cent compared to 2013. The main reasons for the development were the on-going industry consolidation process and accompanying price competition in China, the conflicts in Ukraine and Syria as well as a relatively quiet hurricane season in the U.S.. On a segment level, United Power recorded a decline in revenues in the commercial generators segment of 9.0 per cent. However, the commercial generator segment continues to be the largest segment contributing more than half of total revenues (49.3 million Euros). Sales of residential generators fell slightly by 1.6 per cent to 42.7 million Euros. Year-on-year the outdoor power equipment segment decreased from 4.4 million Euros to 3.1 million Euros in 2014. The strategically less important component segment recorded a decrease in revenues from 1.7 million Euros to 0.5 million Euros in 2014. Despite the headwinds United Power was able to achieve an operating result (EBIT) of 9.1 million Euros (2013: 13.9 million Euros) representing an EBIT margin of 9.5 per cent after 13.4 per cent in the previous year. The net profit decreased from 10.0 million Euros in 2013 to 5.4 million Euros in 2014. Cash and cash equivalents amounted to 50.2 million Euros as at 31 December 2014 which represents an increase of 29.3 per cent (31 December 2013: 38.8 million Euros). This was mainly due to the cash generated from operations of 16.9 million Euros as well as new short-term borrowings of 30.9 million Euros which more than offset the cash used for investments amounting to 18.0 million Euros in the reporting period. The investments were mainly in connection with the expansion of the production capacity. "Despite the challenging business environment, we have been able to add four new four-story factory buildings with a total usable factory space of more than 45,000 square meters and one new dormitory to the current factory space. These investments will help to position us for the expected upswing in our industry and are important steps in relation to the implementation of our three-pronged growth strategy, consisting of scaling up the size of our products, broadening the range of engine-powered products and further geographic expansion and penetration", states Xu Wu, Chairman of the Management Board. During the reporting period the Group's total equity grew by 12.7 per cent to 123.4 million Euros by the end of 2014 (31 December 2013: 109.5 million Euros) mainly due to retained earnings and currency effects. This corresponds to an equity ratio of 76.5 per cent. Outlook The Management Board believes that the investments in the company's capacity expansion will start bearing fruit after the completion of our new production lines in 2015. In the meantime, the Management will focus on laying the foundation for further profitable growth through general strengthening of the company, in particular the sales, distribution and brand building as well as the research and development efforts. However, United Power guidance for 2015 is that the financial results for the full year 2015 will be weaker than in 2014. Although the company expects to halt the downward trend of group revenues in 2015, the Management foresees gross margin and EBIT margin to drop by about 2 - 5 percentage points. On the basis of the financial results and the current business environment, the Management Board and the Supervisory Board of United Power, have decided not to propose a dividend payment for the year 2014 to the Annual General Meeting. The annual report 2014 of United Power Technology AG will be published a few days later due to procedural issues. 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 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: Kirchhoff Consult AG Andreas Friedemann T: +49 40 60 91 86 50 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. --------------------------------------------------------------------- 29.04.2015 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: [email protected] Internet: www.unitedpower.de.com ISIN: DE000A1EMAK2 WKN: A1EMAK Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 350417 29.04.2015