Progress-Werk Oberkirch AG

EANS-News: Progress-Werk Oberkirch AG
PWO reports significant revenue and net income growth in first nine months of 2011

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9-month report

- High growth in revenue and total output
- Operating EBIT before currency effects improves further
- Net income and earnings per share up 44 percent
- 2011 revenue forecast to be exceeded; EBIT forecast confirmed

Oberkirch (euro adhoc) - Oberkirch, November 3, 2011 - Progress-Werk Oberkirch
AG has today published its interim financial report for the third quarter and
first nine months of 2011.

The Group continues to report high growth rates, and is not only benefiting
from the buoyancy of the car sector, but also, in particular, from new series
production runs that are currently starting up, or are being ramped up. For the
first time since we launched our international expansion, all of our foreign
sites are also simultaneously reporting positive trends. As a consequence, we
have now passed the high point of our start-up and expansion costs on the
international markets.

Over the nine-month period of 2011, PWO grew its revenue by 25.6 percent to
EUR 241.0 million (p/y: EUR 191.8 million), and its total output by
23.3 percent to reach EUR 242.7 million (p/y: EUR 196.9 million). The series
production business continues to report strong growth, and our tools business
is running in line with planning. Our reported growth also derived from the
passing on of materials price increases. By their nature, these revenue
components nevertheless generate no EBIT contributions, which affects the
respective margins.

EBIT for the first nine months of 2011 that was not impacted by currency
effects increased to EUR 13.0 million (p/y: EUR 11.4 million for currency
effects of EUR 0.1 million). Given unchanged financing costs, and a marked
reduction in the tax rate, net income and earnings per share grew at a
disproportionately rapid rate of 44 percent to reach EUR 5.2 million (p/y:
EUR 3.6 million) and EUR 2.09 respectively (p/y: EUR 1.45).

In the third quarter of 2011, revenue was up by 20.8 percent to EUR 80.9
million (p/y: EUR 67.0 million), and total output grew by 23.8 percent to
EUR 82.7 million (p/y: EUR 66.8 million). The currency exchange rates that are
relevant for us changed to our benefit in the quarter under review, generating
a positive effect of EUR 1.4 million (p/y: minus EUR 1.5 million), which offset
the currency-related charges incurred during the first six months of the year.
These currency effects derive, in particular, from the measurement as of the
reporting date of intragroup loans whose carrying amounts are unhedged against
exchange rates. This measurement effect contributed to the increase in third-
quarter reporting EBIT to EUR 5.2 million (p/y: EUR 2.8 million), and in net
income to EUR 2.7 million (p/y: EUR 0.0 million).

We registered positive trends before currency effects at all of our foreign
sites in the third quarter of 2011. In Canada and the Czech Republic,
sustainably positive EBIT results are meanwhile being achieved. Series ramp-ups
allowed Mexico to boost its revenue to EUR 8.2 million in the third quarter of
2011, compared with EUR 4.5 million in the second quarter, and this site is
operating on a slightly profitable basis for the first time. Start-up and
expansion losses have been limited in China. As a consequence, the foreign
sites more than compensated for the weakening of EBIT at the Oberkirch location
over the course of the year, which is due to start-up losses. This was
reflected in the 9.2 percent increase in consolidated operating EBIT before
currency effects in the third quarter compared with the second quarter.

With the business progress that we have reported to date in 2011, and given the
anticipated further course of business during the remainder of this year, we
will exceed our forecast revenue of approximately EUR 300 million. Including
the passing on of materials price increases, we expect revenue of around
EUR 330 million in the 2011 financial year. We confirm our forecast of
operating EBIT of around EUR 19 million 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 2,300
staff around the world.

PWO 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

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