Progress-Werk Oberkirch AG: PWQ reports first half-year 2019 results

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

05.08.2019 / 08:00
The issuer is solely responsible for the content of this announcement.

- Business develops as planned amid a challenging environment
- Outlook for revenue and EBIT before currency effects confirmed
- Strong level of new business in Q2 and H1: forecast raised to an estimated roughly EUR 500 million

Oberkirch, August 5, 2019 - The global automotive industry continues to find itself in a very challenging environment. Consequently, the PWO Group is focusing its efforts, primarily at stabilizing its profitability. In the second quarter and first half-year of 2019, the Group succeeded in limiting the impact of market weakness on EBIT before currency effects, supported by cost reductions, process enhancements and one-off effects.

In the second quarter, Group revenue rose to EUR 127.1 million (p/y: EUR 125.9 million) largely as a result of the invoicing of tools. Total output of EUR 113.7 million (p/y: EUR 121.8 million) was significantly below the prior year's level, reflecting the development of the series business amid current market weakness. EBIT before currency effects declined to EUR 4.7 million (p/y: EUR 6.0 million) and to EUR 3.9 million (p/y: EUR 6.2 million) including currency effects. Net income for the period and earnings per share amounted to EUR 1.2 million (p/y: EUR 3.2 million) and EUR 0.40 (p/y: EUR 1.02), respectively.

In the first half-year, revenue of EUR 245.1 million (p/y: EUR 248.7 million) almost matched the prior year's level, whereas total output decreased to EUR 237.5 million (p/y: EUR 246.4 million). EBIT before currency effects amounted to EUR 10.8 million (p/y: EUR 13.5 million) and dropped to EUR 9.8 million (p/y: EUR 13.7 million) including currency effects. Net income for the period and earnings per share declined to EUR 4.5 million (p/y: EUR 7.2 million) and EUR 1.42 (p/y: EUR 2.31), respectively.

Based on the revenue and EBIT before currency effects generated in the first half-year, we are on course to achieve our forecasts for the current fiscal year. We continue to target a stabilization in revenue within the range of EUR 480 to 490 million and EBIT before currency effects of EUR 18 to 19 million.

Despite the market's current development, we are consistently focusing on the Group's medium-term prospects and are therefore very pleased with the strength in new business achieved in the first half of 2019. We won new orders with a volume of around EUR 340 million during the first six months, which includes related tool volumes of around EUR 25 million. As a result, we are now raising our forecast for new business volume in 2019 from EUR 400 million to an estimated roughly EUR 500 million.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is a partner to the global automotive industry for the development and production of advanced metal components and subsystems using lightweight construction. The Group has developed a unique knowledge in the forming and joining of metals over the course of its 100-year history since it was founded in 1919. With our expertise in cost-efficient lightweight construction, we contribute to environmentally friendly driving and greater distances.

All of the Group's more than 1,000 products contribute to automotive comfort and safety. More than 90 percent of revenue is independent of the vehicle's type of drivetrain. Approximately 3,300 employees on three continents at five production sites and four assembly plants ensure the highest level of delivery reliability and quality.

05.08.2019 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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