United Power Technology AG reported earnings results for the first six months of 2016. For the period, the company reported a significant decline in revenue and profitability for the first six months of 2016. The main driver of these results were the adverse-market conditions that have already burdened the demand for engine-driven power equipment for quite some time. In addition to that, a stronger Euro compared to the same period last year further impacted the company's results. Thus, in terms of United Power's functional currency RMB, revenue declined by 9.3%. Due to these circumstances revenue in the reporting period decreased by 14.6% to EUR 53.5 million against EUR 62.6 million a year ago. According to the overall lower demand, which was amplified by further price reductions for some of United Power's products, the EBIT for the first six months of 2016 decreased to EUR 3.4 million. Year-on-year this represents a decline of 56.0%, EUR 7.7 million first six months of 2015. Finally, the Group's profit for the period decreased by 61.4% to EUR 2.0 million as it was EUR 5.1 million in the first six months 2015.

The company revised its guidance for the full financial year 2016 and confirms this revised outlook. For the full financial year 2016 the Group thus expects revenue to fall between 20% and 30% with the gross profit margin to decrease between 2 to 4 percentage points and the EBIT margin to decline by up to 9 percentage points.