Progress-Werk Oberkirch AG: PWO reports continued business strength in the 2016 nine-month period

Press Release

PWO reports continued business strength in the 2016 nine-month period

- All locations contribute to the Group's solid performance

- Net income for the period and earnings per share rise 36%

- 2016 forecast now considered to be conservative

Oberkirch, November 3, 2016 - PWO today published its quarterly statement for the third quarter and first nine months of 2016.

In the third quarter, we continued the positive performance of the first half-year. Meanwhile all of our locations are progressing well. A particular highlight is our successful ramp-up in China, where we doubled our total revenue and brought total output up by half in the nine-month period. The segment's EBIT before currency effects improved by EUR 3.6 million in the first nine months to a positive EUR 1.1 million.

In the third quarter, Group revenue increased to EUR 100.5 million (p/y: EUR 97.9 million) and total output rose to EUR 105.3 million (p/y: EUR 100.5 million). Because of risk provisions taken in the quarter, EBIT before currency effects remained close to the prior year's level and amounted to EUR 6.3 million (p/y: EUR 6.4 million). Net income for the period, including currency effects of EUR -0.3 million (p/y: EUR -1.8 million), more than doubled to EUR 3.6 million (p/y: EUR 1.5 million) as did earnings per share of
EUR 1.15 (p/y: EUR 0.49) and were supported by a declining tax rate.

Revenue in the nine-month period increased to EUR 309.2 million (p/y: EUR 298.7 million) and total output rose to EUR 315.2 million (p/y: EUR 310.0 million). EBIT before currency effects climbed significantly higher in percentage terms and reached EUR 17.8 million (p/y: EUR 16.7 million). Net income for the period, including currency effects of EUR -1.8 million (p/y: EUR -2.5 million), amounted to EUR 8.4 million (p/y: EUR 6.2 million) and earnings per share totaled EUR 2.70 (p/y: EUR 1.99), which represented more than a one-third year-on-year rise in both items.

We continue to be very pleased with our current operating performance. We do, however, see some risks to our earnings in the fourth quarter. Therefore, we will currently remain by our forecast for the 2016 fiscal year for slight revenue growth to around EUR 410 million and a rise in EBIT before currency effects to EUR 20 million.
This forecast is now considered to be conservative.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is one of the world's leading developers and manufacturers of advanced metal components and systems in lightweight construction for automobile safety and comfort. The Group has developed a unique knowledge in the forming and joining of metals over the course of its roughly 97-year history since it was founded in 1919. The German location at Oberkirch today employs around 1,500 staff members. PWO is globally represented with further sites in the Czech Republic, Canada, Mexico, and China. The Group employs a total of 3,100 staff members.

PW0 is a partner to the global automotive industry for the development and production of innovative products in the divisions of "Mechanical components for electrical and electronic applications", "Safety components for airbags, seats and steering" and "Components and subsystems for vehicle bodies and chassis".