Progress-Werk Oberkirch AG

EANS-News: Progress-Werk Oberkirch AG
PWO reports strong first quarter of 2011

- High growth in revenue and total output - Operating EBIT margin rises significantly before currency effects - 2011 forecast confirmed

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3-month report

Subtitle: - High growth in revenue and total output - Operating EBIT margin rises significantly before currency effects - 2011 forecast confirmed

Oberkirch (euro adhoc) - Oberkirch, May 2, 2011 - Progress-Werk Oberkirch AG today published its interim financial report for the first quarter of 2011, and reports strong growth accompanied by high operating profitability.

The revenue and total output of the PWO Group registered strong first-quarter growth of 25.6 percent to EUR 77.1 million (previous year: EUR 61.4 million) and of 24.2 percent to EUR 80.5 million (previous year: EUR 64.8 million). This is mainly the result of the continued positive sector economy, and the start-up of new series production runs, whose ramp-up will intensify even further over the continued course of the year.

Operating EBIT in the quarter under review increased to EUR 5.8 million before currency effects (previous year: EUR 3.8 million). The operating EBIT margin consequently underwent a significant improvement to 7.2 percent (previous year: 6.0 percent). Currency losses nevertheless placed a EUR 1.3 million burden on EBIT (previous year: EUR 0.4 million gain). These are nevertheless prospectively temporary accounting effects resulting from higher volatilities on currency markets, and do not reflect our sites' operating trends. Total consolidated EBIT amounted to EUR 4.5 million in the first quarter of 2011 (previous year: EUR 4.2 million), and EBT totalled EUR 2.9 million (previous year: EUR 2.5 million). Due to a temporarily high tax rate, quarterly net income remained at the previous year's level of EUR 1.6 million, and earnings per share stood at EUR 0.64 (previous year: EUR 0.63). The Group tax rate should reduce over the course of the year.

The marked enhancement of Group operating profitability was achieved particularly at the German site. Our Czech site continued to report pleasing trends. The Canadian location is about to start major series start-ups and ramp- ups. At the Mexico site, where we are gradually replacing our production program with new projects, approximately 60 percent of current series production runs have been exchanged to date, and this figure will amount to more than 80 percent by the end of the year. In this context, major challenges have yet to be successfully mastered in connection with the current growth management.

The strong first quarter of 2011 has allowed us to exceed our budgets for this three-month period. We nevertheless retain a cautious stance regarding sector trends over the further course of the year, and anticipate a slight weakening in the second half of the year. Moreover, there are risks on the materials prices side, and also regarding whether customers' new series start-ups will commence and ramp up as planned. We are confirming our current forecast, however, and anticipate revenue of approximately EUR 300 million for the 2011 financial year, and an EBIT margin of around 6.5 percent before currency effects.

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 further sites in China, Canada, Mexico and the Czech Republic, and employs around 2,200 staff around the world.

PW0 is a partner to the global automotive industry for the development and production of innovative 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".

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Contact:

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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