DGAP-News: Progress-Werk Oberkirch AG: PWO reports results for the nine-month period and third quarter of 2019

 

- International locations secure satisfactory business development in a weak market environment
- Negative industry development increasingly affecting location in Germany
- Outlook for revenue and EBIT before currency effects for the 2019 fiscal year remains unchanged
- New business continues to be positive

Oberkirch, November 7, 2019 - For the nine-month period and the third quarter of 2019, the PWO Group continues to report satisfactory business development, secured by the international locations, in light of a challenging industry environment. In addition to our efforts to stabilize this development, we continue to focus on measures to structurally improve the situation at our home base in Oberkirch.

Stable revenue was greatly supported by tool invoicing, whereas the decline in total output reflected more clearly the performance of the series business and the industry's currently weak development. One-time extraordinary effects continued to have a positive impact on earnings.

Group revenue in the third quarter of 2019 amounted to EUR 107.0 million and remained at the previous year's level (p/y: EUR 108.0 million). Total output declined sharply to EUR 108.7 million (p/y: EUR 119.5 million). EBIT before currency effects amounted to EUR 3.5 million (p/y: EUR 4.2 million). EBIT including currency effects reached EUR 3.3 million (p/y: EUR 3.2 million). Net income for the period and earnings per share rose to EUR 1.3 million (p/y: EUR 0.6 million) and EUR 0.40 (p/y: EUR 0.21), respectively, based on a significantly lower tax rate.

Revenue in the first nine months of the 2019 fiscal year amounted to EUR 352.1 million and almost reached the prior-year's level (p/y: EUR 356.7 million). Total output was lower year-on-year and amounted to EUR 346.1 million (p/y: EUR 366.0 million). EBIT before currency effects totaled EUR 14.3 million (p/y: EUR 17.6 million). EBIT including currency effects declined to EUR 13.1 million (p/y: EUR 16.9 million). Net income for the period decreased to EUR 5.7 million (p/y: EUR 7.9 million). Earnings per share were also lower at EUR 1.83 (p/y: EUR 2.52).

Meanwhile, we expect our revenue to reach the lower end of the forecast range of EUR 480 to 490 million in the 2019 fiscal year. We are maintaining our forecast for EBIT before currency effects and confirm our forecast range of EUR 18 to 19 million.

New business continues to develop favorably and the acquired volume of around EUR 465 million in the first nine months demonstrates that we are well on our way to reaching our already revised higher full-year forecast of approximately EUR 500 million. We are seeing significant success, particularly with our seat components. In the third quarter, we acquired an order from a renowned manufacturer to supply these components to premium class vehicles. Production of components for this order is scheduled to begin at our Czech location in 2022. Based on these and other new orders, we are now increasing our attention on our medium-term business development.

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.