DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Annual Results
- 2018 adjusted forecast for revenue and EBIT slightly exceeded
Oberkirch, February 25, 2019 - PWO is today announcing its preliminary figures for the 2018 fiscal year. After growing strongly early in the year, an unexpected, sudden decline in sales volumes for the car manufacturers in the autumn brought significant pressure and caused us to make an adjustment to our forecast. In the final few weeks of 2018, however, business performance exceeded our adjusted forecast. Overall, revenue at the end of the year surpassed our expectations. This was, however, exclusively a result of an increase in our invoicing of upfront investments in tools in the fourth quarter, whereas the higher-margin series revenues remained below the previous year's level.
Group revenue rose to EUR 485.0 million in 2018 (p/y: EUR 461.0 million), while total output of EUR 478.0 million (p/y: EUR 483.1 million) remained below the prior year's level. EBIT before currency effects amounted to EUR 19.6 million (p/y: EUR 23.4 million) and EUR 18.5 million including currency effects (p/y: EUR 20.5 million). This slightly exceeded the upper end of our adjusted forecasts for revenue and EBIT before currency effects. Net income for the period was EUR 6.7 million (p/y: EUR 10.1 million), earnings per share amounted to EUR 2.13 (p/y: EUR 3.22), and free cash flow reached EUR 8.1 million (p/y: EUR 4.3 million). The equity ratio (28.1 percent; p/y: 28.7 percent) and the dynamic leverage ratio (3.1 years; p/y: 2.8 years) were not as planned, coming in somewhat below the previous year's level.
We currently expect the overall restrained market development seen in the second half of 2018 to continue in 2019. We do however expect various new start-ups and ramp-ups to contribute to stable revenue and EBIT at the PWO Group. As a result, we are forecasting revenue of EUR 480 - 490 million and EBIT before currency effects of EUR 18 - 19 million for the 2019 fiscal year. Renewed positive free cash flow is expected to contribute to a slight improvement in the equity ratio and dynamic leverage ratio compared to 2018.
PWO's final figures for the 2018 fiscal year will be published on March 28, 2019. The 2018 Annual Report will be available on March 29, 2019 at www.progress-werk.de/en/.
Progress-Werk Oberkirch AG
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 3,400 employees on three continents at five production sites and four assembly plants ensure the highest level of delivery reliability and quality.
|Company:||Progress-Werk Oberkirch AG|
|Phone:||+49 (0)7802 84-347|
|Fax:||+49 (0)7802 84-789|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange|
|End of News||DGAP News Service|