04/30/2021 | Press release | Archived content
Affalterbach, 30 April 2020 - HWA AG was hit with full force by the Corona pandemic in 2020. Accordingly, turnover slumped significantly and the net income was negative. Overall, the company achieved consolidated sales of 65.6 million euros compared to 113.6 million euros in the previous year. The negative EBIT was 10.6 million euros, after minus 8.9 million euros in 2019. The former expectations before the pandemic, which foresaw a decline in turnover but a positive EBIT, were clearly missed in 2020. After taxes and interest, the loss in 2020 was 11.3 million euros after 8.2 million euros in the previous year. In the reporting period, the operating cash flow was negative at 2.5 million euros after minus 3.7 million euros in the previous year. Cash flow from investing activities was 0.8 million euros after 5.4 million euros in the previous year. At the end of 2020, HWA AG had equity capital of 18.1 million euros in the Group. The Group's equity ratio is accordingly over 26 percent.
In the vehicles/vehicle components business field, HWA AG initially got off to a promising start in 2020. The close partnership with Mercedes-AMG GmbH in its Customer Racing activities remains unchanged, but was very significantly burdened by the pandemic in 2020. Although the market launch of the M-AMG GT3 MY 2020 was successful, car deliveries ended abruptly from mid-March 2020. The After-Sales business, which is linked to the racing season, was also significantly weaker than expected in 2020. In addition, projects that had been firmly planned for the end of the year were postponed or delayed. HWA AG had already budgeted for a decline in sales in the business field of automobile racing due to the discontinuation of the DTM business in 2020. HWA AG's activities in the ABB FIA Formula E Championship, as well as in the FIA Formula 2 and FIA Formula 3, went largely according to plan.
HWA AG expects to return to profitability in 2021. This is also the top priority. Due to a significant reduction in the general cost structure, the Executive Board considers EBIT in the low single-digit million range to be achievable in 2021 from today's perspective. In the automobile racing segment, revenue will decrease significantly this year because the business in connection with the ABB FIA Formula-E will cease from the 2021/2022 season. The decline in sales cannot be compensated for at present. An increase in revenue is expected in the vehicles/vehicle components business segment. Overall, however HWA AG revenues will again decrease compared to the previous year.
HWA AG will publish the audited annual and consolidated financial statements for 2020 in mid-May.
Corporate Profile HWA AG:
HWA AG is an independent, 360° engineering specialist in the fields of automobile racing and high-performance cars. Formed in 1998 by Hans Werner Aufrecht, the company is based in Affalterbach (Germany) and employs roughly 300 highly-qualified members of staff HWA AG offers all its products and services under the motto ENGINEERING SPEED: The company's objective is to develop the best possible, high-quality solutions, in order to get its partners and customers to their destination quicker. The portfolio of services ranges from designing all vehicle components to assembling complete cars, together with the relevant logistics, after-sales and support services.