Progress-Werk Oberkirch AG

DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Quarter Results

2015-11-04 / 08:00

Press Release

PWO continues encouraging revenue and EBIT growth in the third quarter of 2015

- Positive operating business development in the third quarter

- Sector risks have recently risen

- Forecast for 2015 confirmed

Oberkirch, November 4, 2015 - Today, Progress-Werk Oberkirch AG released its interim financial report for the third quarter and nine-month period of 2015. The Group continued to grow in the third quarter, significantly strengthening its profitability and further improving its balance sheet ratios. The locations in Germany and Mexico are seeing the benefits from the measures implemented, but the Chinese activities are still loss making. We also remained successful in generating new business: By mid-October, we had reached a total lifetime volume of roughly EUR 430 million for new series contracts, including tool volumes. New business for the whole of the 2014 fiscal year had amounted to EUR 280 million.

Revenues in the third quarter rose 6.5 percent to EUR 97.9 million (p/y: EUR 92.0 million), and total output increased 3.9 percent to EUR 100.5 million (p/y: EUR 96.7 million). EBIT saw an even stronger improvement to EUR 4.6 million (p/y: EUR 4.0 million) despite currency effects of EUR -1.8 million (p/y: EUR 1.4 million). Net income for the period after financial expenses and income taxes amounted to EUR 1.5 million (p/y: EUR 1.2 million) and earnings per share equaled EUR 0.49 (p/y: EUR 0.40).

The performance in the 2015 nine-month period was still impacted by the somewhat subdued first quarter. Consequently, revenue in the first nine months grew 4.2 percent to EUR 298.7 million (p/y: EUR 286.7 million), and total output increased 4.9 percent to EUR 310.0 million (p/y: EUR 295.6 million). Currency effects put a EUR -2.5 million burden on EBIT (p/y: EUR 1.4 million). Nevertheless, the decline in EBIT could be halted to a level of EUR 14.2 million (p/y: EUR 14.7 million). This resulted in a decline that was substantially lower than in the first half of 2015. Net income for the period amounted to EUR 6.2 million (p/y: EUR 6.7 million) and earnings per share totaled EUR 1.99 (p/y: EUR 2.16).

Our current operating business development is satisfactory. We are on track to reach our 2015 targets for revenue and EBIT before currency effects that were published in our 2014 Annual Report. Recently, the news flow from our sector has been bleak and, consequently, the risks for the PWO Group have increased. This is particularly the case with regard to the change in growth prospects for the Chinese economy. Generally, we also refrain from making projections on future exchange rates.

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 around 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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