SHW: E-mobility offers opportunities

SHW, the Schwäbische Hüttenwerke, is probably one of the oldest companies listed on a German stock exchange. A predecessor of the company was founded in Königsbronn in the 14th century.

The product range has changed significantly over time. Ores used to be processed in smelting works. Today the company listed in m: access is a supplier to the automotive industry with a focus on pumps, engine components and brake discs – with all the problems that the industry currently has to offer. Thomas Karazmann, SHW’s CFO, made this clear at an m: access conference organized by the Munich Stock Exchange.

SHW probably wants to quickly forget the second quarter of 2020, the word “catastrophic” would fit. The lockdown hit society hard. It has been running again since June, and a steady improvement can be seen. Nevertheless, Karazmann emphasized at the virtual conference that one continues to drive on sight. However, he is optimistic about developments in China. The company will continue to enjoy sales there in 2020. Apparently there are clear catch-up effects in China.

At SHW, there is little concern about the dynamics in the electrical sector. E-cars and hybrid vehicles also need pumps for the cooling circuit, and these cars also have to brake. So there will also be sales markets for the corresponding products from SHW in the future.

For the current year, SHW expects sales of EUR 370 million to EUR 390 million. That would be a minus of 10 percent to 15 percent. In 2019, the southern Germans generated 432.4 million euros. The CFO does not yet want to comment on EBITDA at the conference. He still lacks various indications for this. The pandemic could also have an impact here. After the first half of the year, EBITDA fell by 77 percent to 4.7 million euros.

SHW’s difficulties can be seen in the course of the course. Before the crisis, the SHW share was quoted around 20 euros, at the peak of the crisis the share halved to around 10 euros in mid-March. They still haven’t recovered from that. There has been a sideways trend in the course for months. The share currently stands at just over 14 euros.


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