DGAP-News

Progress-Werk Oberkirch AG: PWO with strong revenue and earnings growth in Q1 2017

DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Quarter Results Progress-Werk Oberkirch AG: PWO with strong revenue and earnings growth in Q1 2017 04.05.2017 / 08:00 The issuer is solely responsible for the content of this announcement. - Revenue: +13 percent - Total output: +22 percent - EBIT before currency effects: +16 percent - Disproportionate rise in net income for the period and earnings per share

Oberkirch, May 4, 2017 - PWO today published its quarterly statement for the first quarter of 2017. The Company is currently benefiting from a solid automotive market and the sales successes of recent years. These factors enabled PWO to grow significantly faster than the sector in the first quarter of 2017.

The rise in revenue was also attributed to the ability to pass on higher material prices and, above all, to a higher-than-expected volume of customer call orders. Most locations had sufficient capacity to accommodate the additional units and at the same time achieve satisfactory margins. In Germany and China, however, additional expenses were temporarily necessary to realize growth.

Overall, Group revenue rose to EUR 117.1 million (p/y: EUR 103.7 million), and total output increased to EUR 122.0 million (p/y: EUR 100.2 million). EBIT before currency effects grew to EUR 5.6 million (p/y: EUR 4.8 million), and EUR 5.2 million including currency effects (p/y: EUR 3.6 million). The net income for the period improved to EUR 2.9 million (p/y: EUR 1.3 million) and earnings per share to EUR 0.91 (p/y: EUR 0.42).

Revenue and earnings growth in the first quarter were well above the growth rates forecast for the entire 2017 fiscal year. We are very pleased with this performance, which gives us continued confidence. However, if capacity utilization remains high or climbs even higher, the capacity risks and, thereby, the cost of providing customers with timely delivery will likely increase. For this reason, we will be working together closely with our operations in China during their expansion.