United Power Technology AG reported consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company was able to improve results despite continued challenging market conditions. The company generated revenues of EUR 26.9 million against EUR 23.7 million in the first quarter 2014. To a large extent this development was due to currency effects as a result of a weaker Euro compared to the same period last year as the revenues are denominated in RMB and USD. Furthermore positive sales developments, in North America as well as new growth markets where revenues not only increased in Euro but also in RMB terms contributed to the improved results. Despite the headwinds in the market environment the company was able to maintain its profitability. Year-on-year the operating result (EBIT) increased by 40.7% to EUR 4.0 million against EUR 2.9 million a year ago. The net profit increased from EUR 2.3 million in the reporting period 2014 to EUR 3.1 million in 2015.

The Management Board of the company confirms its outlook for 2015 as published in the annual report 2014. The company expects the overall financial results in the full year 2015 again to be weaker than in 2014. Concerning the group revenues expects to halt the downward trend in 2015 assuming a stable RMB: EUR exchange rate of 6.7:1. Although the company predicts to halt the downward trend of group revenues in 2015, the Management foresees gross margin and EBIT margin to drop by about 2 to 5 percentage points. The latter is mainly due to further price adjustments, higher fixed asset depreciation as well as a significant step up in sales, brand building and distribution as well as research and development budget.