Progress-Werk Oberkirch AG

EANS-News: Progress-Werk Oberkirch AG
PWO reports good business trends in the third quarter of 2010

- Third-quarter operating EBIT before currency effects reaches highest level of current financial year - Accounting currency effects burden quarterly results - 2010 revenue and EBIT forecast confirmed

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9-month report

Subtitle: - Third-quarter operating EBIT before currency effects reaches highest level of current financial year - Accounting currency effects burden quarterly results - 2010 revenue and EBIT forecast confirmed

Oberkirch (euro adhoc) - Oberkirch, November 2, 2010 - Today, Progress-Werk Oberkirch AG presents its interim financial report for the third quarter and first nine months of 2010. In the quarter under review, the Group has further augmented the strong operating trend of the first two quarters of 2010.

Given stable series revenues, total revenue including tools amounted to EUR 67.0 million in the quarter under review (Q2/2010: EUR 63.4 million). Operating EBIT before currency effects improved to EUR 4.3 million (Q2/2010: EUR 3.2 million). Negative currency effects burdened third-quarter results to the tune of EUR 1.5 million. These are nevertheless accounting effects resulting from higher volatilities on currency markets, and do not reflect our sites' operating trends.

We are, in any case, assuming that we will achieve our forecast revenue growth in ex-cess of 20 percent in 2010 to more than EUR 250 million, and EBIT of around EUR 15 million, also excluding currency gains. For this reason, this forecast remains valid.

In overall terms, revenue amounted to EUR 67.0 million in the quarter under review (p/y: EUR 54.3 million), total output to EUR 66.8 million (p/y: EUR 55.6 million), and EBIT to EUR 2.8 million (p/y: EUR 0.0 million). Despite the strongly negative currency effects, breakeven was achieved at the net income level (p/y: EUR -1.5 million). Over the nine-month period, revenue amounted to EUR 191.8 million (p/y: EUR 144.8 million), total output to EUR 196.9 million (p/y: EUR 149.9 million), EBIT to EUR 11.5 million (p/y: EUR -7.2 million), and net income for the period to EUR 3.6 million (p/y: net loss of EUR -9.3 million).

The marked enhancement of Group operating profitability was achieved particularly at the German site. The foreign sites reported stable operating trends. The fact that the Czech site reported significant growth in the third quarter compared with the second quarter is a particularly pleasing aspect, and the location is meanwhile well on its way to achieving a clearly positive EBIT result for the first time in 2010. The site in Canada developed within the scope of budgets, and is preparing for the start-up of new major pro-duction of cross-members. As expected, the locations in Mexico and China continue to report figures in the red.

We have stringently restricted the tying up of capital in the balance sheet over the course of 2010. Total assets expanded only moderately, despite high growth. As a consequence, the key balance sheet ratios remained stable over the course of the third quarter, and also unchanged compared with the 2009 financial year. The equity ratio amounted to 30.4 percent as of the September 30, 2010 balance sheet date (December 31, 2009: 30.0 percent), and net debt fell slightly to EUR 77.7 million (December 31, 2009: EUR 79.1 million). Gearing (net debt expressed as a percentage of equity) has meanwhile improved to 118.1 percent (end-2009: 128.7 percent). We will continue with this positive trend over the coming years.

Cash flow from operating activities amounted to EUR 17.4 million during the nine-month period. As a consequence, we are well on the way to achieving our objective of free cash flow breakeven in the 2010 financial year (after investments and interest paid), although we are still budgeting a marked increase investments for the fourth quarter to around EUR 20 million, and despite the fact that third-quarter free cash flow was still negative. Cash outflows for investments totalled EUR 11.6 million over the first nine months of 2010, and EUR 3.6 million of interest payments were disbursed. Free cash flow correspondingly amounted to EUR 2.2 million.

Progress-Werk Oberkirch AG The Management Board

PWO company profile PWO is one of the world's leading suppliers of advanced metal components for automobile safety and comfort. The company has developed unique knowledge in the forming and joining of metals over the course of its over 90-year history since it was founded in 1919. The German location at Oberkirch today employs around 1,200 staff members. The Group is globally represented with fur-ther sites in China, Canada, Mexico and the Czech Republic, and employs around 2,000 staff around the world.

PW0 is a partner to the global automotive industry for the development and production of innova-tive products in the areas of "Mechanical components for electrical and electronic applications", "Safety components for airbags, seats and steering" and "Components and systems for vehicle bodies and chassis".

Series orders currently on hand will result in significant growth at all sites over the next two years, irrespective of full market recovery.

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ots Originaltext: Progress-Werk Oberkirch AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Bernd Bartmann (CFO)
Phone: +49 7802 / 84-347
Fax: +49 7802 / 84-789
e-Mail: bernd.bartmann@progress-werk.de

Branche: Automotive Equipment
ISIN:      DE0006968001
WKN:        696800
Börsen:  Frankfurt / regulated dealing/prime standard
              Berlin / free trade
              Hamburg / free trade
              Stuttgart / free trade
              Düsseldorf / free trade
              München / free trade



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