Progress-Werk Oberkirch AG: PWO restructures the Oberkirch location and gives an outlook for future business development

Progress-Werk Oberkirch AG

/ Key word(s): Change in Forecast


09.12.2014 14:45

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.

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Oberkirch, December 9, 2014 - In today's meeting, the Management andSupervisory Boards of Progress-Werk Oberkirch AG

discussed the mid-termoutlook for the Group's locations and adopted the business plan.The Boards have come to the conclusion that the Oberkirch location is inneed of measures to strengthen profitability since customers areincreasingly transferring portions of their vehicles production to foreignplants. This limits the German location's growth perspectives. Therefore,the Management Board has recently decided not to extend the existingsupplemental agreement, which excludes redundancies until the end of 2014,and runs until the end of 2016.A program for strengthening the profitability of this location is currentlybeing developed and will be promptly implemented. All processes will becritically reviewed. Furthermore, staff costs - particularly those in theindirect areas - will be significantly reduced. Provisions of EUR 4 millionwill still be recognized in the current fiscal year for socially compatiblepersonnel adjustments of around 100 employees.The aim is to stabilize the profitability of the Oberkirch location even inthe case of stable revenues and to compensate for the additional burdensincurred annually - particularly those from tariff increases and expensesrelated to the expiry of the supplemental agreement. The annual savings instaff and operating costs are expected to reach a total of at least EUR 4million. Due to the in some cases long notice periods, this volume ofsavings will become fully earnings-relevant starting in fiscal year 2016.For fiscal year 2014, the Group expects revenues of nearly EUR 380 millionand, especially as a result of extraordinary charges from personneladjustments, expects EBIT to be lower at EUR 15 million to EUR 16 million.Previously, an EBIT at the lower end of the target range of 20 to 21million EUR was forecasted. In fiscal year 2015, the savings effects willlargely compensate for the estimated rise in costs in the personnel area.With revenues of around EUR 400 million, we come to an EBIT of around EUR19 million. In subsequent years, the measures presented as well as theexpected rise in revenues should lead to significant gains in annualearnings.Progress-Werk Oberkirch AG

The Management Board End of announcement 09.12.2014 The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: EnglishCompany: Progress-Werk Oberkirch AG


Industriestraße 8
77704 Oberkirch GermanyPhone: +49 (0)7802 84-0
Fax: +49 (0)7802 84-273E-mail: info@progress-werk.de
Internet: www.progress-werk.de


ISIN: DE0006968001
WKN: 696800Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, München End of Announcement DGAP News-Service

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