PWO reports significant revenue and net income growth in first nine months of 2011

• High growth in revenue and total output
• Operating EBIT before currency effects improves further
• Net income and earnings per share up 44 percent
• 2011 revenue forecast to be exceeded; EBIT forecast confirmed

Oberkirch, November 3, 2011 - Progress-Werk Oberkirch AG has today published its interim financial report for the third quarter and first nine months of 2011.

The Group continues to report high growth rates, and is not only benefiting from the buoyancy of the car sector, but also, in particular, from new series production runs that are currently starting up, or are being ramped up. For the first time since we launched our international expansion, all of our foreign sites are also simultaneously reporting positive trends. As a consequence, we have now passed the high point of our start-up and expansion costs on the international markets.

Over the nine-month period of 2011, PWO grew its revenue by 25.6 percent to EUR 241.0 million (p/y: EUR 191.8 million), and its total output by 23.3 percent to reach EUR 242.7 million (p/y: EUR 196.9 million). The series production business continues to report strong growth, and our tools business is running in line with planning. Our reported growth also derived from the passing on of materials price increases. By their nature, these revenue components nevertheless generate no EBIT contributions, which affects the respective margins.

EBIT for the first nine months of 2011 that was not impacted by currency effects increased to EUR 13.0 million (p/y: EUR 11.4 million for currency effects of EUR 0.1 million). Given unchanged financing costs, and a marked reduction in the tax rate, net income and earnings per share grew at a disproportionately rapid rate of 44 percent to reach EUR 5.2 million (p/y: EUR 3.6 million) and EUR 2.09 respectively (p/y: EUR 1.45).

In the third quarter of 2011, revenue was up by 20.8 percent to EUR 80.9 million (p/y: EUR 67.0 million), and total output grew by 23.8 percent to EUR 82.7 million (p/y: EUR 66.8 million). The currency exchange rates that are relevant for us changed to our benefit in the quarter under review, generating a positive effect of EUR 1.4 million (p/y: minus EUR 1.5 million), which offset the currency-related charges incurred during the first six months of the year. These currency effects derive, in particular, from the measurement as of the reporting date of intragroup loans whose carrying amounts are unhedged against exchange rates. This measurement effect contributed to the increase in third-quarter reporting EBIT to EUR 5.2 million (p/y: EUR 2.8 million), and in net income to EUR 2.7 million (p/y: EUR 0.0 million).

We registered positive trends before currency effects at all of our foreign sites in the third quarter of 2011. In Canada and the Czech Republic, sustainably positive EBIT results are meanwhile being achieved. Series ramp-ups allowed Mexico to boost its revenue to EUR 8.2 million in the third quarter of 2011, compared with EUR 4.5 million in the second quarter, and this site is operating on a slightly profitable basis for the first time. Start-up and expansion losses have been limited in China. As a consequence, the foreign sites more than compensated for the weakening of EBIT at the Oberkirch location over the course of the year, which is due to start-up losses. This was reflected in the 9.2 percent increase in consolidated operating EBIT before currency effects in the third quarter compared with the second quarter.

With the business progress that we have reported to date in 2011, and given the anticipated further course of business during the remainder of this year, we will exceed our forecast revenue of approximately EUR 300 million. Including the passing on of materials price increases, we expect revenue of around EUR 330 million in the 2011 financial year. We confirm our forecast of operating EBIT of around EUR 19 million before currency effects.

Progress-Werk Oberkirch AG

The Management Board