Progress-Werk Oberkirch AG: PWO fully meets 2016 forecasts and plans to continue strong growth in 2017

Press Release

PWO fully meets 2016 forecasts and plans to continue strong growth in 2017

• Achieves turnaround in China and Mexico
• Earnings per share increases by 27 percent
• Strong outlook for 2017

Oberkirch, February 22, 2017 - PWO today published the preliminary figures for a very satisfactory 2016 fiscal year. In the past year, we significantly increased the Group's performance in several areas including development, production and administration at both our domestic and international locations. Above all, we managed to achieve a distinctly positive EBIT before currency effects in both China and Mexico.

The Group's revenue and total output increased only moderately to EUR 409.6 million (p/y: EUR 404.6 million) and EUR 423.5 million (p/y: EUR 413.3 million), respectively, due to declining material prices. EBIT before currency effects increased to EUR 21.6 million (p/y: EUR 17.1 million). EBIT including currency effects totaled EUR 19.7 million (p/y: EUR 18.1 million). Based on these results, we fully achieved our revenue forecast of roughly EUR 410 million and our EBIT before currency effects forecast of EUR 21 to 22 million. The previous year's figures were adjusted due to a reclassification of currency effects introduced at the beginning of 2016. Currency effects are generally not included in our forecasts.

Net income for the period reached EUR 9.5 million (p/y: EUR 7.5 million), earnings per share equaled EUR 3.05 (p/y: EUR 2.41), and free cash flow amounted to EUR 13.0 million (p/y: EUR -1.8 million). The equity ratio remained at the prior year's level of around 30 percent.

The year 2017 is expected to be another successful year. We expect revenue excluding material price effects to grow to roughly EUR 430 million. Rising material prices will have an added positive impact on revenue but only a negligible effect on EBIT. We anticipate a disproportionate rise in EBIT before currency effects to EUR 23 to 24 million. Net income for the period should increase even more due to the expected continued decline in burdens from the financial result and tax rate.

We will publish our final figures for the 2016 fiscal year on March 30, 2017. The 2016 annual report will be available on our homepage www.progress-werk.de/en/ as of March 31, 2017.

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 more than 95-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 China, Canada, Mexico, and Czechia. The Group employs a total of 3,200 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".