United Power Technology AG Announces Earnings Results for the Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Full Year of 2014
The company reported a decrease in revenues of 8.6% to 77.1 million in the first nine months 2014 compared with 84.3 million for the same period a year ago. 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. EBIT fell by 19.8% to 10.9 million in the first nine months 2014 compared with 13.6 million for the same period a year ago. The groups profit declined by 30.6 per cent to 8.1 million or 0.66 per share compared with 11.6 million or 0.95 per share for the same period a year ago. Profit before tax was 10.57 million compared with 13.83 million for the same period a year ago. The revenue decline has to be seen in the context of a continued challenging industry environment which started to significantly affect its in the second half 2013. This weakness is due to a variety of factors including a period of intense price competition in its domestic market, which the company believes is temporary and related to continuous consolidation in its industry in China, the quiet hurricane season as well as weaker than expected global growth. Cash generated from operating activities was 14.87 million compared with 15.51 million for the same period a year ago. Profit for the period attributable to owners of the company was 8.08 million compared with 11.74 million for the same period a year ago. Payments for acquisition of property, plant and equipment was 16.50 million compared with 7.64 million for the same period a year ago.
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.