Progress-Werk Oberkirch AG

Progress-Werk Oberkirch AG / Key word(s): Interim Report/9-month figures

04.11.2014 / 08:00

- 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).
Total output rose to EUR 96.7 million (p/y: EUR 94.2 million) as a result of a higher level in finished goods and work-in-progress compared to the prior year. EBIT declined to EUR 4.0 million (p/y: EUR 4.7 million). Net income for the period amounted to EUR 1.2 million (p/y: EUR 2.6 million) and earnings per share totaled EUR 0.40 (p/y: EUR 0.82).

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
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 1,600 staff members. The Group is globally represented with further sites in China, Canada, Mexico, and the Czech Republic. It employs around 3,200 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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