Progress-Werk Oberkirch AG

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

31.07.2014 / 08:00

Press Release

PWO confirms preliminary figures for the first half of 2014

- First half revenues and EBIT at previous year's level

- Measures to adjust capacity to have an effect in the second half of the year

Oberkirch, July 31, 2014 - Today, Progress-Werk Oberkirch AG published its interim financial report for the second quarter and first half of 2014. The preliminary figures announced on July 21 were confirmed.

As previously reported, our business performance was adversely impacted by slower start-ups and ramp-ups of new series productions. This concerned nearly all of the locations of the Group except for our location in the Czech Republic which exceeded revenue and EBIT expectations once again.

The Group's revenues, total output, and EBIT for the reporting half year were at the previous year's level: Revenues were EUR 194.7 million (p/y: EUR 191.6 million), total output amounted to EUR 198.9 million (p/y: EUR 198.1 million), and EBIT totaled EUR 10.8 million (p/y: EUR 11.0 million. Net income for the period amounted to EUR 5.5 million (p/y: EUR 6.0 million) and was lower than the comparable figure of the previous year due to a temporary rise in the tax rate. Accordingly, earnings per share fell to EUR 1.76 (p/y: EUR 1.91).

Since we had adjusted our capacity to meet the higher expected volumes, the missing contribution margin resulting from a delay in start-ups and ramp-ups became more apparent in the figures for the quarter. In the second quarter, revenues amounted to EUR 95.0 million (p/y: EUR 97.5 million), total output reached EUR 98.4 million (p/y: EUR 100.0 million, and EBIT was EUR 4.8 million (p/y: EUR 5.2 million). Net income for the period amounted to EUR 2.3 million (p/y: EUR 2.8 million), and earnings per share amounted to EUR 0.72 (p/y: EUR 0.89).

As previously announced, for fiscal year 2014, we expect revenues of EUR 385 million (p/y: EUR 377.4 million) and an EBIT in the range of EUR 20 million to EUR 21 million (p/y: EUR 22.3 million). In the past two years, we have received orders for new series productions, including the accompanying tool orders, amounting to a lifetime volume of over EUR 800 million. The majority of these orders will start-up and ramp-up in the next two years. Therefore, we are confident that by the year 2015 we will have returned to our long-term path of continual growth in revenues and earnings.

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 automotive 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 currently employs over 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 "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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