Progress-Werk Oberkirch AG

EANS-News: Progress-Werk Oberkirch AG
PWO with sustained growth in first half of 2011

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
6-month report

Subtitle: - High growth in revenue and total output
- Operating EBIT margin before currency effects improves
- Revenue forecast prospectively set to be exceeded due to offsetting of     
materials prices
- EBIT forecast confirmed

Oberkirch (euro adhoc) - Oberkirch, August 2, 2011 - Progress-Werk Oberkirch AG
has today published its interim financial report for the second quarter and
first half of 2011. The Group reports continued high growth. A further
improvement was recorded in the first six months of the year in the EBIT margin
before currency effects. As announced, both sites in Canada and the Czech
Republic are in the process of stabilising their profitability in the series
business, and of expanding it gradually.

PWO's consolidated revenue and total output underwent sharp increases in the
second quarter: revenue was up by 30.9 percent to EUR 83.0 million (p/y:
EUR 63.4 million), and total output increased by 21.7 percent to EUR 79.5
million (p/y: EUR 65.3 million). As a consequence, PWO continues to benefit
from the persistently good sector economy, and from the start up of new series
production runs. Despite burdens arising from series start-ups, operating EBIT
before currency effects for the quarter increased to EUR 3.4 million (p/y:
EUR 3.2 million).

Accounting-based currency effects that result from higher volatilities on
currency markets, and do not reflect our sites' operating trends, amounted to
EUR -0.1 million in the quarter under review (p/y: EUR 1.3 million). The
Group's reported EBIT correspondingly amounted to EUR 3.3 million in the second
quarter (p/y: EUR 4.5 million). The below-average growth in operating EBIT in
the second quarter results are particularly from a high volume of tool revenues
due to the reporting date, and burdens arising from materials prices in the
three-month period. EBT for the quarter under review amounted to EUR 1.8
million (p/y: EUR 3.0 million), and net income for the quarter stood at EUR 0.9
million (p/y: EUR 2.0 million).

The trend in the first half of 2011 underscores the strength of PWO's current
business development, which is more than compensating for the burdens placed on
second-quarter EBIT. In the first six months of 2011, revenue increased by
28.2 percent to EUR 160.1 million (p/y: EUR 124.8 million), and total output
was up by 22.9 percent to EUR 160.0 million (p/y: EUR 130.1 million). Operating
EBIT before currency effects grew to EUR 9.3 million (p/y: EUR 7.1 million),
and the margin rose to 5.8 percent (p/y: 5.4 percent). After EUR -1.4 million
of currency effects (p/y: EUR 1.7 million), operating EBIT stood at EUR 7.8
million in the first half of 2011 (p/y: EUR 8.7 million).

With a look to the six-month period, we significantly limited the increase in
the materials expense ratio through passing on raw materials price increases.
Earnings before tax for the first half of 2011 amounted to EUR 4.7 million
(p/y: EUR 5.5 million), and net income for the first six months stood at
EUR 2.5 million (p/y: EUR 3.6 million).

First-half earnings were primarily generated by our high-performing home
location at Oberkirch. The Canadian site has already largely achieved stable
series ramp-up processes in the second quarter of 2011, however, and has
already visibly exceeded breakeven in terms of EBIT before currency effects.
The Czech location continued to be burdened by losses in its tools business in
the second quarter, while there was a pleasing development in its series
business. As communicated on several occasions, both of the sites in Mexico and
China will become profitable next year, and the year after.

With the earnings for the first half of 2011, we have created the basis for
achieving our forecast EBIT before currency effects of EUR 19 million for the
full 2011 year. We continue to budget revenue from the series business at
approximately EUR 300 million. In addition, however, we also anticipate
additional revenue effects arising from the offsetting of higher materials

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 2,300
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".

Further inquiry note:
Bernd Bartmann (CFO)
Phone: +49 7802 / 84-347
Fax: +49 7802 / 84-789

end of announcement                               euro adhoc 

company:     Progress-Werk Oberkirch AG
             Industriestraße 8
             D-77704 Oberkirch
phone:       +49(0)7802 84-0
sector:      Automotive Equipment
ISIN:        DE0006968001
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
             Hamburg, Stuttgart, Düsseldorf, München 
language:   English

Weitere Meldungen: Progress-Werk Oberkirch AG

Das könnte Sie auch interessieren: