Progress-Werk Oberkirch AG

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

31.07.2013 / 08:00


Press Release

PWO reports figures for the second quarter and
the first half year of 2013

- Strong second quarter of 2013: Disproportionate increase in net income for the period

- International locations support positive development

- Forecasts for 2013 confirmed: Growth in revenues and EBIT is expected

Oberkirch, July 31, 2013 - Today, Progress-Werk Oberkirch AG released its interim financial report for the second quarter and first half year of 2013.

The PWO Group's growth gained considerable momentum in the second quarter: Revenues, total output, and EBIT each demonstrated double-digit growth versus the prior year. Net income for the period climbed by one third. Presently, this positive development is being driven by the high performance quality of our locations in Canada and the Czech Republic. Hence, we are increasingly benefiting from our international positioning.

Revenues and total output in the reporting quarter rose considerably over the prior year with respective increases of 11.3 percent to EUR 97.5 million (p/y: EUR 87.6 million) and 10.8 percent to EUR 100.0 million (p/y: EUR 90.2 million). EBIT climbed 10.2 percent to EUR 5.2 million (p/y: EUR 4.7 million). As a result of declining financial expenses and a lower tax rate, net income from the period rose 31.9 percent to EUR 2.8 million (p/y: EUR 2.1 million). Earnings per share improved 18.7 percent to EUR 0.89 (p/y: EUR 0.75) despite the 11.7 percent increase in the average number of shares versus the prior year as a result of the capital increase in May 2012.

The strong second quarter more than compensated for the moderate performance at the start of the year. As a result, the Group saw an improvement in the first half of 2013 over the prior year. Revenues and total output rose 7.2 percent to EUR 191.6 million (p/y: EUR 178.7 million) and 8.6 percent to EUR 198.1 million (p/y: EUR 182.3 million) respectively. EBIT increased 2.2 percent to EUR 11.0 million (p/y: EUR 10.8 million). At EUR 6.0 million (p/y: EUR 5.3 million), net income for the period clearly exceeded the previous year's level by 13.5 percent. Earnings per share amounted to EUR 1.91 and remained slightly below last year's level of EUR 1.99 due to the higher number of shares.

The high level of tool inventories as of the end of the first half will be invoiced in the course of the second half of the year. Thus, only from that point the earning's contributions will be recognized.

This mainly concerns the German location which is also affected by the current weakness of the European automotive market and from the significant increase in energy and staff costs. Measures to counteract these strains have been implemented.

The Mexican location was stabilized and is currently working at the break-even level. The profitability of this location is successively being improved. We are also optimistic that we will reach the break-even point in China very soon, not only as a result of the high growth in the series business, but also due to the increased use of this location by the Group for tool production.

We remain confident that in the second half of the current fiscal year we will exceed the revenues and EBIT figures of the first half and consequently confirm our forecasts for 2013. We continue to expect an increase in revenues of 8 percent to approximately EUR 390 million. EBIT should be in the order of EUR 23 million. We particularly expect higher overall revenues and profits compared to the prior year from our international locations. These are expected to increase their EBIT to more than EUR 6 million (p/y: EUR 3.7 million).

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is one of the world's leading suppliers of advanced metal components for automobile 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 today employs over 1,500 staff members. The Group is globally represented with further sites in Canada, the Czech Republic, China and Mexico employs approximately 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 areas of '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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