Progress-Werk Oberkirch AG / Key word(s): Profit Warning
- Economically and structurally negative developments in the automotive industry are affecting PWO
Oberkirch, October 19, 2018 - The automotive industry is currently exposed to significant pressures from various sources (including diesel issues, trade conflicts, transition to the WLTP test cycle), which have eliminated the typical and expected seasonal recovery in the industry after the end of the summer break this year. This affects PWO's business development at all of its locations, even when specific issues do not have a direct effect on our product range.
According to the initial preliminary calculations for the nine-month period, revenues (which benefited from tool invoicing) amounted to EUR 356.7 million (p/y: EUR 346.0 million), and total output increased to EUR 366.0 million (p/y: EUR 363.0 million). EBIT before currency effects totaled EUR 17.6 million (p/y: EUR 18.7 million).
Revenue is expected to grow somewhere in the range of EUR 475 million to EUR 480 million in 2018 (previous expectation: EUR 500 million versus EUR 461 million in the prior-year period) due to the sharp decline in customer call orders in recent weeks scheduled for the months ahead - both in terms of current production and current start-ups and ramp-ups. Cost reductions already initiated will only have a partial effect in the current fiscal year. As a result, the weaker revenue growth now expected will affect the EBIT, meaning that it will not be possible to reach our previous forecast of EUR 25 - 26 million before currency effects and the EBIT will fall significantly short of the previous year's figure of EUR 23.4 million. Shifts in investment, however, will limit the impact of this on the balance sheet ratios.
Based on the new assessment of current business development, the Company will presumably not achieve its previous forecast for 2020 (revenues: > EUR 530 million; EBIT before currency effects: > EUR 33 million).
The new 2018 forecasts will be specified with the announcement of the third quarter and nine-month financial results on October 30, 2018. The new mid-term plan will be updated as part of the new budget planning process.
The key figure, EBIT before currency effects, corresponds to the definition in the 2017 Annual Report on p. 21, which is available at https://www.progress-werk.de/en/investors-press/news-publications/reports/annual-report-2017/.
Progress-Werk Oberkirch AG
End of the ad hoc announcement
|Company:||Progress-Werk Oberkirch AG|
|Phone:||+49 (0)7802 84-347|
|Fax:||+49 (0)7802 84-789|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange|
|End of Announcement||DGAP News Service|