Progress-Werk Oberkirch AG / Key word(s): Interim Report/9-month figures
- Business performance in line with expectations that were revised in July
- Macroeconomic and geopolitical risks have increased
- Revenues and EBIT expected at lower end of expectations
- Construction of assembly plant in China to reinforce international business
Oberkirch, November 4, 2014 - Today, Progress-Werk Oberkirch AG published its interim financial report for the third quarter and nine-month period of 2014. As in the previous quarter, the Group's business performance continued to be affected by slower-than-expected start-ups and ramp-ups of new series productions. Measures to adapt to current capacity utilization are being implemented, but will still need time to achieve their full effect.
In the first nine months, Group revenues amounted to EUR 286.7 million (p/y: EUR 284.7 million), total output was EUR 295.6 million (p/y: EUR 292.3 million) and EBIT reached EUR 14.7 million (p/y: EUR 15.8 million). At EUR 6.7 million (p/y: EUR 8.6 million), net income for the period was also below the previous year's level due to a temporarily higher tax rate. Accordingly, earnings per share fell to EUR 2.16 (p/y: EUR 2.74). In the reporting quarter, revenues reached EUR 92.0 million (p/y: EUR 93.0 million).
The present business development confirms our fiscal year 2014 forecast for revenue of approximately EUR 385 million and an EBIT in the range of EUR 20 to 21 million. How-ever, given the growing overall market risk and the continued high fluctuation in customer call orders, the risks to our forecast have increased. Therefore, we expect that revenues may be lower rather than higher than this forecast and EBIT to be at the lower end of the target range.
To reinforce our international business, we are currently building a new Chinese assembly plant in Shenyang. We expect to assemble the first cross-members at this location in the third quarter of 2015. In addition, in the months to come there will be contract awards for numerous larger projects involving engine housings, seats, and cross-members which offer further attractive growth opportunities for the Group.
Progress-Werk Oberkirch AG
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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|