Progress-Werk Oberkirch AG

Progress-Werk Oberkirch AG / Key word(s): Final Results

2015-03-25 / 08:00

Press Release

PWO confirms preliminary figures for 2014 and resolves dividend proposal

- Revenue stable, net income for the period declines due to structural measures taken, among others

- Management proposes a corresponding dividend adjustment

- Further strong international growth planned

- 2015 forecast unchanged

Oberkirch, March 25, 2015 - In yesterday's meeting, the Supervisory Board of Progress-Werk Oberkirch AG reviewed, discussed, and approved the financial statements and the consolidated financial statements for the 2014 fiscal year. The financial statements of Progress-Werk Oberkirch AG are thus adopted.

The preliminary figures for the 2014 fiscal year that were announced on February 16, 2015, have been confirmed. Revenues amounted to EUR 381.1 million (p/y: EUR 377.4 million), total output reached EUR 390.7 million (p/y: EUR 384.2 million) and EBIT totaled EUR 16.7 million (p/y: EUR 22.3 million). Net income for the period amounted to EUR 7.3 million (p/y: EUR 13.1 million). Expenses related to personnel adjustments carried out at the Oberkirch location reduced EBIT by EUR 4.0 million.

Investments grew to EUR 37.4 million (p/y: EUR 32.0 million) as a result of the accelerated expansion of our highly profitable Czech location. Our other locations were also strengthened through further investments. Free cash flow declined to EUR -14.7 million (p/y: EUR 1.6 million) due to the lower net income for the period and higher investments. The equity ratio and gearing (net debt as a percentage of equity) totaled 28.1 percent (p/y: 34.2 percent) and 130 percent (p/y: 97 percent), respectively. Both of these key ratios were affected by valuation adjustments made to the pension plans due to the renewed decline in interest rates and the corresponding decline in the discount rates.

The Management Board and Supervisory Board of Progress-Werk Oberkirch AG will propose a dividend of EUR 1.45 per share (p/y: EUR 1.80) to the Annual General Meeting on May 19, 2015. This proposal reflects not only the business development in 2014, but also our steady dividend policy.

For the current fiscal year, we expect further revenue and earnings growth at our foreign locations. Our Czech location, in particular, is on the verge of a surge in growth. In China, the Group's first assembly location will commence operations. The earnings at our German location are expected to decline while revenues are expected to remain stable. The positive effects generated by our efficiency improvement program will be fully reflected in profit and loss in 2016 at the earliest and contribute to a rise in earnings. As already announced, the Group is expected to have revenues of approximately EUR 400 million and an EBIT of roughly EUR 19 million in the 2015 reporting year.

The 2014 annual report of the PWO Group will be available on our homepage as of March 31, 2015.

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 company has
developed a unique knowledge in the forming and joining of metals over the course of its 95-year history since it was founded in 1919. The German location at Oberkirch today employs more than 1,500 staff members. The Group is globally represented with further sites in China, Canada,
Mexico, and the Czech Republic. It employs around 3,100 staff members worldwide.

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".

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