Progress-Werk Oberkirch AG: PWO consistently presses forward with Group's expansion in the first half of 2018

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

31.07.2018 / 08:00
The issuer is solely responsible for the content of this announcement.


- Strong increase in revenue due to successive reduction in up-front investments in tools: currency-adjusted increase of 9.2 percent; reported increase of 6.7 percent
- Significant rise in EBIT and net income for the period in the first half-year
- Positive free cash flow despite higher investment
- Company confirms 2018 forecast, but trade policy concerns are increasing

Oberkirch, July 31, 2018 - In 2018, the focus is on the start-up of large and complex series productions at four locations. The previous up-front investments in tools necessary for these are now being gradually invoiced to the customers. This contributed to sharp growth in revenue in the first half of 2018. Absent any weakness in the euro against the US dollar, revenue growth would have been a currency-adjusted 9.2 percent in the first half-year. Including currency effects, revenue growth was 6.7 percent.

Series start-ups are progressing as scheduled, although profitability needs to be further improved, especially in Germany and China. At EUR 19.6 million (p/y: EUR 13.2 million), the Group's investments in the first half-year clearly exceeded the prior year's level. The Group generated positive free cash flow of EUR 2.1 million (p/y: EUR -5.4 million).

In the second quarter, Group revenue increased to EUR 125.9 million (p/y: EUR 116.0 million), with total output close to the prior year's level and amounting to EUR 121.8 million (p/y: EUR 122.1 million). EBIT before currency effects equaled EUR 6.0 million (p/y: EUR 6.7 million) and EUR 6.2 million (p/y: EUR 5.2 million) including currency effects. Net income for the period and earnings per share amounted to EUR 3.2 million (p/y: EUR 3.1 million) and EUR 1.02 (p/y: EUR 0.98), respectively. In the first half-year, revenue increased to EUR 248.7 million (p/y: EUR 233.1 million) while total output rose to EUR 246.4 million (p/y: EUR 244.1 million). EBIT before currency effects increased to EUR 13.5 million (p/y: EUR 12.3 million) and totaled EUR 13.7 million (p/y: EUR 10.4 million) including currency effects. Net income for the period improved to EUR 7.2 million (p/y: EUR 5.9 million) and earnings per share to EUR 2.31 (p/y: EUR 1.89).

Overall, we are on target for the first half-year and on course to reach our 2018 full-year targets but are becoming increasingly concerned about the currently rapidly deteriorating climate for trade policy. Assuming there is no serious weakening in the economic environment in the second half-year, we confirm our forecasts for revenue of EUR 500 million (p/y: EUR 461.0 million) and EBIT before currency effects of EUR 25 to 26 million (p/y: EUR 23.4 million) for the 2018 fiscal year.

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 almost 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 3,400 employees on three continents at five production sites and four assembly plants ensure the highest level of delivery reliability and quality.

31.07.2018 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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