Progress-Werk Oberkirch AG: PWO announces strong second quarter and first half of 2016

Press Release

PWO announces strong second quarter and first half of 2016

- Continued high level of new business

- All locations recorded a favorable development in revenue and EBIT before currency effects

- Q2: EBIT before currency effects 25 percent higher year-on-year; net income for the period more than doubled

Oberkirch, August 4, 2016 - PWO today published its interim financial report for the second quarter and first half of 2016.

Developments were consistently positive: New business in the first half of 2016 is already close to the record volume achieved for the entire fiscal year 2015. Our locations in Mexico and China have confirmed their turnarounds. The Czech Republic location in the second quarter returned to the customary EBIT margins generated in prior years, once again emphatically underlining its performance capabilities. The Group's revenue and total output benefited from positive market developments but falling raw material prices dampened growth. This has only a minor effect on our EBIT.

Revenue in the second quarter increased to EUR 105.0 million (p/y: EUR 101.2 million), and total output rose to EUR 110.0 million (p/y: 106.3 million). EBIT before currency effects climbed 25 percent to EUR 6.6 million (p/y: EUR 5.3 million). Net income for the period including currency effects of EUR -0.2 million (p/y: EUR -1.4 million) and after financial expenses and income taxes increased to EUR 3.5 million (p/y: EUR 1.5 million) bringing earnings per share up to EUR 1.12 (p/y: EUR 0.49).

The performance of the first half of 2016 was still affected by the somewhat subdued start in the year. Revenue grew to EUR 208.7 million (p/y: EUR 200.8 million), and total output rose to EUR 209.9 million (p/y: 209.5 million). EBIT before currency effects climbed 12.0 percent to EUR 11.5 million (p/y: EUR 10.2 million). Net income for the period, including currency effects of EUR -1.5 million (p/y: EUR -0.7 million), increased to EUR 4.8 million (p/y: EUR 4.7 million) resulting in earnings per share of EUR 1.55 (p/y: EUR 1.50).

We are very pleased with our current operating development and are confirming our 2016 forecast of a slight improvement in revenue to around EUR 410 million and an increase in EBIT before currency effects to a total of EUR 20 million. Generally, we refrain from making forecasts with respect to future currency parities.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is one of the world's leading developers and manufacturers of advanced metal components and systems in lightweight construction for automobile safety and comfort. The Group has developed a unique knowledge in the forming and joining of metals over the course of its roughly 97-year history since it was founded in 1919. The German location at Oberkirch today employs around 1,500 staff members. PWO is globally represented with further sites in the Czech Republic, Canada, Mexico, and China. The Group employs a total of 3,100 staff members.

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