Progress-Werk Oberkirch AG

DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Annual Results
25.02.2020 / 08:00
The issuer is solely responsible for the content of this announcement.

 

- Positive Group earnings development in 2019 due to international locations and extraordinary effects
- Profitability of the German location still insufficient
- Further cost reductions being implemented
- Market environment expected to remain weak in 2020

Oberkirch, February 25, 2020 - PWO today presents its preliminary results for the 2019 fiscal year. The past year's development was affected by the weak sales figures in the automotive industry, which led to a noticeable decline in revenue. The international locations and one-time extraordinary effects, by comparison, had a positive influence on the earnings situation.

The comparability of the Group's revenue to the previous year and to the forecast for the 2019 financial year is limited due to adjustments in IFRS accounting. EBIT before currency effects exceeded the expectations as a result of non-recurring extraordinary items and would have been at the upper end of the forecast range in operating terms.

Our international locations have developed well, as expected, while the profitability of the German location has not yet reached a viable level. As previously reported, further cost reductions are being implemented at this location, particularly to reduce the high level of staff costs.

In 2019, Group revenues declined to EUR 458.6 million (p/y: EUR 476.3 million, adjusted), and total output fell to EUR 459.9 million (p/y: EUR 478.0 million). EBIT before currency effects amounted to EUR 22.2 million (p/y: EUR 19.6 million) and exceeded the forecast range of EUR 18 to 19 million. EBIT, including currency effects, was EUR 19.9 million (p/y: EUR 18.4 million). Net income for the period was EUR 9.1 million (p/y: EUR 6.6 million, adjusted) and earnings per share amounted to EUR 2.91 (p/y: EUR 2.12, adjusted). Free cash flow was positive as planned, and the equity ratio and the dynamic leverage ratio improved slightly as expected.

For 2020, we expect the sector to remain weak. However, series production start-ups and ramp-ups should help us to generate revenue of approximately EUR 450 million. Extensive cost savings will not be able to fully compensate for the absence of the positive extraordinary effects recorded during the 2019 fiscal year, the slightly declining revenues and the price pressure in the automotive industry. As a result, we expect EBIT before currency effects to range from EUR 19 to 20 million. Continued strong positive free cash flow should contribute to a further improvement in the equity ratio and dynamic leverage ratio compared to 2019.

PWO's final results for the 2019 fiscal year will be published on March 26, 2020. The 2019 Annual Report will be available as of March 30, 2020 on the Company's homepage at www.progress-werk.de/en.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is a partner to the global automotive industry for the development and production of advanced metal components and subsystems using lightweight construction. The Group has developed a unique knowledge in the forming and joining of metals over the course of its more than 100-year history since it was founded in 1919. With our expertise in cost-efficient lightweight construction, we contribute to environmentally friendly driving and greater distances.

All of the Group's more than 1,000 products contribute to automotive comfort and safety. More than 90 percent of revenue is independent of the vehicle's type of drivetrain. Approximately 3,200 employees on three continents at five production sites and four assembly plants ensure the highest level of delivery reliability and quality.



25.02.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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