Progress-Werk Oberkirch AG

DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Incoming Orders/Expansion

2016-10-17 / 08:00
The issuer is solely responsible for the content of this announcement.


Press Release

PWO sets another record in new orders

- Orders in the first nine months of 2016 already exceed volume in the full 2015 fiscal year

- Forecast for new business in 2016 raised significantly

- New assembly location in Mexico enhancing presence in the NAFTA Area

- Medium-term 2020 revenue and margin targets confirmed

Oberkirch, October 17, 2016 - The PWO Group is extending its recent success in acquiring new contracts. At the end of September 2016, PWO achieved record new business volume once again with a total lifetime volume of EUR 630 million, EUR 47 million of which was attributed to related tool orders. New business volume for the first nine months 2016 has thus already surpassed the previous record reached in the full fiscal year 2015 of EUR 600 million. New business volume for the 2016 fiscal year is now expected to reach EUR 700 million.

The key drivers of this growth continue to be our lightweight, innovative instrument panel carriers (cross-members). Our Canadian location recently won a large follow-on order for these products. Overall, we are enjoying significant success across all of our product areas at all locations. As is customary in our business, the new series productions will start-up over the next years. The usual lifetime of these is 7 to 9 years.

A decision has also been made to set up an assembly location in San Luis Potosí in Central Mexico so that the PWO Group can continue its expansion. Many of the international auto industry's major manufacturers and suppliers are already present or are about to be soon in this fast-growing region. Around 8,000 m² of leased space will be tailored to our specific requirements over the next several quarters. We have also secured additional space for further expansion.

Dr. Volker Simon, CEO, is pleased with the Group's sales success: "We are rapidly expanding the product range and production volumes at our global locations, which is further strengthening our global position and our position in the local markets at the same time. This gives us confidence that we will continue growing strongly internationally, even beyond the year 2020."

For Bernd Bartmann, CFO, the focus is increasingly turning towards the Group's medium-term targets. "We announced our aim to grow revenues by the year 2020 to above EUR 500 million and achieve an EBIT margin before currency effects of roughly 7%. Our current level of new business underscores our ability to reach these targets. At the same time, we will continue to pay attention to maintaining well-balanced financing and stable balance sheet ratios."

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 Group has developed a unique knowledge in the forming and joining of metals over the course of its roughly 97-year history since it was founded in 1919. The German location at Oberkirch today employs around 1,500 staff members. PWO is globally represented with further sites in the Czech Republic, Canada, Mexico, and China. The Group employs a total of 3,100 staff members.

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".



2016-10-17 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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