DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Incoming Orders/Expansion
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
PWO company profile
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".
|Company:||Progress-Werk Oberkirch AG|
|Phone:||+49 (0)7802 84-347|
|Fax:||+49 (0)7802 84-789|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange|
|End of News||DGAP News Service|