Ad hoc: Progress-Werk Oberkirch AG: PWO releases interim financial report for the first nine months 2009

Progress-Werk Oberkirch AG / Interim report / Ad hoc: PWO releases 
interim financial report for the first nine months 2009
 
Ad hoc announcement according to §15 WpHG processed and transmitted 
by Hugin. The issuer is solely responsible for the content of this 
announcement.     
 
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- Growth of revenue and output in 9M 2008 lower than in H1
- EBIT below last year's level
- Forecast Q4 2008 continues to be uncertain: Massive decline in
sales
   expected and EBIT at best at break even
- Thus forecast 2008: Revenue expected to at best reach the 2007
level, EBIT
   2008 at best on the level for the first nine months 2008
-  Solid, investor oriented dividend policy expected to be continued
 
Oberkirch, November 4, 2008 - Progress-Werk Oberkirch AG continued
its growth in the third quarter and subsequently during the first
nine month period of 2008, even though growth rates were
significantly below those of the first half-year. Group revenue for
the quarter under review rose 4.0 percent to EUR 65.6 million (p/y
63.1). Consolidated output was up by 1.4 percent to EUR 66.9 million
(p/y 66.0). In the first nine months revenue was increased by 7.0
percent to EUR 204.2 million (p/y 190.9). As a result of a rise in
inventories of finished and unfinished goods in the first quarter of
2008, output increased at a substantially higher rate of 9.7 percent
to EUR 212.0 million (p/y 193.3).
During the summer months we recorded some shifts in standby orders by
our customers at our German production site in particular. This is
not unusual for this period of the year as it is the holiday season.
But in the period under review this revenue was not made up for until
the end of the quarter, as is usually the case. Therefore, the EBIT
of the site remained below the previous year's level in the third
quarter. In our international markets the Czech plant continued to
grow strongly, but earnings remained unchanged compared to last year.
In the NAFTA region the Canadian plant remained profitable despite
low standby orders. Our Mexican site achieved further growth, however
considerable negative effects weighed on earnings. On top of
exceptionally high currency translation losses, expenses for further
process upgrades occurred again. On the upside, the site has
successfully passed the audit of its largest customer and has thus
gained acceptance to the planned high volume tenders. Both revenue
and output at our Chinese joint venture remained negligible in the
first nine months. We are continuing to establish our own subsidiary
as planned.
In total EBIT in the third quarter 2008 fell to EUR 2.8 million (p/y
3.8). As a result of a very strong EBIT result in the second and
third quarter of last year the first nine months of 2008 saw a more
pronounced decline to EUR 11.0 million (p/y 12.7).
After slightly increased net financial expenses and a significantly
improved tax ratio consolidated net profit for the third quarter
attributable to PWO shareholders stood at EUR 1.1 million (p/y 1.7).
Earnings per share amounted to EUR 0.44 (p/y 0.71). In the nine month
period consolidated net profit attributable to PWO shareholders
amounted to EUR 5.4 million (p/y 6.2). Earnings per share over the
same period were EUR 2.14 (p/y 2.48).
As a result of the significant fall in standby orders for the fourth
quarter, we reduced our forecast for the current financial year on
September 29, 2008. At that point we announced revenue above the
previous year level (2007: EUR 259.6 million) and a lower EBIT figure
(2007: EUR 16.8 million). However, since that forecast was made the
operating environment in the sector has further strongly deteriorated
and as a result standby orders have not yet stabilised.
Therefore, the forecast for the full year 2008 continues to carry a
high level of uncertainty. For the fourth quarter we foresee a sales
decline of more than 20 percent. Thus, sales for the full year 2008
is forecasted to at best reach the 2007 level, which stood at EUR
259.6m. Regarding EBIT the massive sales decline in the fourth
quarter translates in the best case into a breakeven result in that
period and thus an EBIT for the full year 2008 significantly below
the EUR 16.8m will be reached in the year 2007.
Concerning the dividend for 2008, we expect to continue our solid
investors oriented dividend policy. We also will continue
consequently with our international growth strategy, which is without
alternative for our long-term success. In doing so, we will of course
adjust to short-term market developments, reshape our structures were
necessary and reconsider investment projects.
Progress-Werk Oberkirch AG
The Management Board
 
Contact: Bernd Bartmann, Member of the Management
Board
Phone: +49 7802 /
84-347
Fax:     +49 7802 /
84-789
e-mail: bernd.bartmann@progress-werk.de
 
PWO Group profile: a global future in the automobile supplies
industry
PWO is one of the world's leading suppliers of high-precision metal
components for the automobile
industry, specialising in vehicle safety and comfort. Its unmatched
expertise in the fields of metalforming and joining technology has
been acquired over nearly ninety years since the company's
foundation in 1919. Today, PWO's German production site in Oberkirch
employs around 1,100
staff. With other sites in the Czech Republic, China, Mexico and
Canada, the Group has now
achieved a global presence with a total workforce of around 1,900.
 
PWO acts as a partner to the automobile industry in the development
and production of innovative
products. The Group manufactures millions of components on a
just-in-time and zero-defect basis.
In close collaboration with customers, PWO is expanding its
international production sites in order
to supply local markets. PWO has already achieved significant success
on its way of global expansion. The company has orders on hand which
will lead to strong growth of revenue and EBIT once the industry will
return to normalised sales figures.
 
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Progress-Werk Oberkirch AG
Industriestrasse 8 Oberkirch 
Germany
 
WKN: 696800; ISIN: DE0006968001; Index: CLASSIC All Share, Prime All 
Share, CDAX;
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Freiverkehr in Börse Düsseldorf, Amtlicher Markt in Börse Stuttgart, 
 
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