Progress-Werk Oberkirch AG / Key word(s): Final Results/Dividend
PWO confirms preliminary figures for fiscal year 2013 and proposes an increase in the dividend
- Record revenues and earnings in fiscal year 2013
- Further growth in revenues and EBIT expected in 2014
- Management proposes an increased dividend of EUR 1.80 per share (p/y: EUR 1.60) to the Annual General Meeting
Oberkirch, March 26, 2014 - The Supervisory Board of Progress-Werk Oberkirch AG reviewed, discussed, and approved the financial statements and the consolidated financial statements for the 2013 fiscal year. The financial statements of Progress-Werk Oberkirch AG are thus adopted.
The preliminary figures for fiscal year 2013, which were already announced on February 17, 2014 have been confirmed. Group revenues grew 5.4 percent to EUR 377.4 million (p/y: EUR 358.1 million), total output increased 4.8 percent to EUR 384.2 million (p/y: EUR 366.6 million), and EBIT grew 5.0 percent to EUR 22.31 million (p/y: EUR 21.25 million). Net income for the period improved 26.0 percent to EUR 13.14 million (p/y: EUR 10.43 million).
Our German location was impacted by the weakness of the European automotive market as well as by higher staff and energy costs. While revenues increased moderately, EBIT declined compared to the prior year. In contrast, our locations in the Czech Republic and in Canada continued to develop very positively. We were able to further stabilize the processes in Mexico and the location is now operating at break-even. The Chinese site almost doubled its revenues and achieved a positive EBIT in the fourth quarter of 2013, which included some special effects. Excluding these special effects, the break-even level was achieved at the operating level, as expected. Thus, the previous start-up losses declined dramatically.
As announced earlier, the level of investment decreased to EUR 32.0 million in fiscal year 2013 (p/y: EUR 41.2 million). Nevertheless, we initiated significant capacity extensions at several locations to prepare for our planned growth. Thanks to the strong rise in the net income for the period and the lower level of investment, positive free cash flow of EUR 1.6 million was generated after interest paid and received. In the prior year, free cash flow had been negative at EUR 11.2 million. The equity ratio of 34 percent (p/y: 34 percent) and gearing (net debt, i.e., interest-bearing liabilities less cash and cash equivalents, as a percentage of equity) of 97 percent (p/y: 95 percent) remained largely unchanged.
We expect ongoing revenue and earnings growth at our international locations in the current fiscal year. For the German location, we expect moderate revenue growth and an improvement in earnings. As already communicated earlier, the Group expects revenue growth of about 6 percent to EUR 400 million and a disproportionate rise in the EBIT to EUR 25 million. We expect this positive development to continue in subsequent years. This will also be supported by the substantial rise in new business of 22 percent to EUR 456 million during the past fiscal year.
In view of the past fiscal year's favorable development and the strong outlook ahead, the Management Board and the Supervisory Board of Progress-Werk Oberkirch AG have decided to propose an increase in the dividend to EUR 1.80 per share (p/y: EUR 1.60) to the Annual General Meeting on May 21, 2014.
The PWO Group's 2013 Annual Report will be available on our homepage (www.progress-werk.de) as of March 31, 2014.
Progress-Werk Oberkirch AG
PWO company profile
PW0 is a partner to the global automotive industry for the development and production of innovative products in the divisions "Mechanical components for electrical and electronic applications", "Safety components for airbags, seats and steering" and "Components and sub-systems for vehicle bodies and chassis".
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|Company:||Progress-Werk Oberkirch AG|
|Phone:||+49 (0)7802 84-0|
|Fax:||+49 (0)7802 84-273|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, München|
|End of News||DGAP News-Service|