United Power Technology AG Announces Earnings Results for the Year 2013; Provides Earnings Guidance for 2014
The company's guidance for the full year 2014 is that the financial results will be somewhat weaker than 2013. The group revenues are likely to face a slight decline resulting from lower revenues from the commercial and residential generator segments. However the Management Board anticipates a growth in the outdoor power segment. The company expects gross profit and EBIT margins to be somewhat lower compared to 2013 due to expected further Renminbi (RMB) appreciation against the US-Dollar, higher fixed asset depreciation as well as a larger research and development budget.Planned investments in capacity expansion for 2014 amount up to EUR 36 million: 90% is designated for property, plant and equipment, mainly for the third and newest factory Gaoqi Industrial Park and up to eight new production lines depending on market developments. The remaining funds shall be invested in R&D in order to accelerate new product developments as well as modifications in order to meet the new technical requirements as well as sales and distribution.