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Progress-Werk Oberkirch AG: PWO confirms preliminary figures for the third quarter and first nine months of 2020

·5-min read

DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Quarterly / Interim Statement
09.11.2020 / 08:00
The issuer is solely responsible for the content of this announcement.

- Visible upturn in business in the third quarter; revenue decline significantly lower compared to the nine-month period
- EBIT before currency effects and provisions for personnel adjustments clearly positive in the third quarter
- Robust new business strongly underscores market position
- Forecast for the full year still characterized by considerable uncertainties due to the corona pandemic

Oberkirch, November 9, 2020 - PWO today presents its nine-month report for the 2020 fiscal year and confirms the preliminary figures announced in its ad hoc statement on October 27, 2020.

The situation in the international automotive industry eased significantly in the third quarter. Some PWO locations were already able to match the revenue levels of the previous year. This positive development coincided with the significant reduction in costs during the crisis, so that overall, the results (EBIT before currency effects) achieved were satisfactory.

All international locations delivered positive results. The good profitability at the China location was particularly noteworthy. As already reported, the cost-cutting program at the German site in Oberkirch was extended to include personnel measures. Provisions of EUR 10.0 million were recognized in the reporting quarter for the expenses expected to be incurred for these measures. Without these charges, the location's result would have been break-even.

Revenue in the third quarter decreased to EUR 99.2 million (p/y: EUR 108.5 million) and total output to EUR 99.4 million (p/y: EUR 108.7 million). EBIT before currency effects fell to EUR -4.0 million (p/y: EUR 3.5 million) as a result of recognizing provisions. Including currency effects, EBIT decreased to EUR -4.2 million (p/y: EUR 3.3 million). Net income for the period and earnings per share were EUR -3.9 million (p/y: EUR 1.3 million) and EUR -1.24 (p/y: EUR 0.40), respectively.

In the nine-month period, revenue amounted to EUR 257.4 million (p/y: EUR 345.3 million) and total output to EUR 257.9 million (p/y: EUR 346.1 million). EBIT before currency effects amounted to EUR -2.9 million (p/y: EUR 14.3 million) and, including currency effects, decreased to EUR -4.3 million (p/y: EUR 13.1 million). Net income for the period declined to EUR -6.8 million (p/y: EUR 5.7 million), and earnings per share fell to EUR -2.17 (p/y: EUR 1.83).

Free cash flow was positive in both reporting periods and, at EUR 22.0 million in the nine-month period, was significantly higher than in the prior year (p/y: EUR 14.2 million). Net debt also developed positively, falling from EUR 132.5 million at the end of the previous fiscal year to EUR 111.2 million as of September 30, 2020. The equity ratio decreased to 28.2 percent as of September 30, 2020, compared to 30.1 percent as of December 31, 2019. This decrease resulted from the loss for the period as well as from a higher allocation to pension provisions due to the change in capital market interest rates.

We strongly underscored our market position in the third quarter with a robust lifetime volume of new business of around EUR 190 million. In total, we generated new business of around EUR 350 million in the nine-month period. The Czech site, in particular, was successful in the seating segment and, among others, will begin indirectly supplying a new German plant of an American pioneer in electromobility. In the future, PWO will also manufacture air spring components for the premium electric vehicle platform of a renowned German manufacturer. PWO also won an instrument panel carrier order for the platform of a German premium car manufacturer, who PWO will be supplying in this area for the first time.

The new forecast for the 2020 fiscal year was communicated on October 27, 2020, when there were already concerns of a further tightening of corona restrictions. The present lockdown differs from that in the spring of 2020 and is also more differentiated internationally. This leaves us confident that the economic interventions and consequences will be less severe than they were in the spring.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is a partner to the global automotive industry for the development and production of advanced metal components and subsystems using lightweight construction. The Group has developed a unique knowledge in the forming and joining of metals over the course of its more than 100-year history since it was founded in 1919. With our expertise in cost-efficient lightweight construction, we contribute to environmentally friendly driving and greater distances.

All of the Group's more than 1,000 products contribute to automotive comfort and safety. More than 90 percent of revenue is independent of the vehicle's type of drivetrain. Approximately 3,000 employees on three continents at five production sites and four assembly plants ensure the highest level of delivery reliability and quality.


09.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Progress-Werk Oberkirch AG

Industriestraße 8

77704 Oberkirch

Germany

Phone:

+49 (0)7802 84-347

Fax:

+49 (0)7802 84-789

E-mail:

ir@progress-werk.de

Internet:

www.progress-werk.de

ISIN:

DE0006968001

WKN:

696800

Listed:

Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange

EQS News ID:

1146066


 

End of News

DGAP News Service

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