Progress-Werk Oberkirch AG

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

04.11.2013 / 08:00

Press Release

PWO reports results for the third quarter and the nine-month period of 2013

- Positive development in the third quarter

- EBIT improved, further appreciable increase in net income for the period

- Forecasts for 2013 confirmed

Oberkirch, November 4, 2013 - Today, Progress-Werk Oberkirch AG released its interim financial report for the third quarter and nine-month period of 2013.

At the start of the third quarter, our operating development was rather subdued. This is typical for the summer holiday months and made the operating development in September all the more pleasing. Our efforts at cost reduction and efficiency improvements are showing results. We are also making valuable progress in improving our balance sheet ratios: In the third quarter, a distinct positive free cash flow was achieved.

In the reporting quarter, revenues increased only 2.5 percent to EUR 93.0 million (p/y: EUR 90.7 million) and, at EUR 94.2 million (p/y: EUR 94.1 million), total output remained at the prior year's level. Nevertheless, EBIT increased a disproportional 8.2 percent to EUR 4.7 million (p/y: EUR 4.4 million) and the EBIT margin expanded to 5.0 percent (p/y: 4.6 percent). Due to a decline in financial expenses and a falling tax rate, the net income from the period climbed 48.7 percent to EUR 2.6 million (p/y: EUR 1.7 million). Earnings per share improved to EUR 0.82 (p/y: EUR 0.55).

In the nine-month period, revenues and total output climbed 5.6 percent to EUR 284.7 million (p/y: EUR 269.4 million) and 5.7 percent to EUR 292.3 million (p/y: EUR 276.5 million), respectively. EBIT increased 3.9 percent to EUR 15.8 million (p/y: EUR 15.2 million). At EUR 8.6 million (p/y: EUR 7.0 million), net income for the period exceeded the previous year's level by 22.2 percent. Earnings per share rose to EUR 2.74 (p/y: EUR 2.49).

Currently, the development at our individual locations is dominated by extremely diverse market factors. In Germany, we needed to compensate for the burdens arising from the weakness in the European automotive market as well as from the sharp rise in energy and staff costs. The Czech and Canadian locations continue with their very positive development. Mexico has stabilized and in China we are approaching a volume of revenues which will allow a marked improvement in the earnings situation. Here, we expect EBIT to break even in the fourth quarter of 2013 and are aiming to achieve a balanced EBIT on average for the upcoming fiscal year.

In addition, a marked improvement was shown in the Group's balance sheet ratios. In the third quarter, free cash flow after interest paid and received amounted to EUR 6.1 million (p/y: EUR -8.0 million) and thus made a visible improvement in the balance sheet ratios. Stringent management of current assets and a limitation on investment will also continue to be the focus in the future.

We reconfirm our forecasts for fiscal year 2013 and continue to expect an increase in revenues to approximately EUR 390 million. The EBIT should be in the order of EUR 23 million.

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 over 90-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 Canada, the Czech Republic, China, and Mexico and employs around 3,100 staff members around the world.

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 systems for vehicle bodies and chassis'.

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