Progress-Werk Oberkirch AG: PWO reports on the first quarter of 2020

- Development according to plan until the outbreak of the corona crisis
- Improved key financial figures and continued strength in new business
- Further course of the pandemic still unclear

Oberkirch, May 11, 2020 - The PWO Group's business development in the first quarter of 2020 prior to the outbreak of the corona pandemic proceeded according to plan. After our Asian locations were initially impacted by the crisis in February, the first revenue shortfalls were recorded at the Group's other locations in March. Nevertheless, we can report improved overall key financial figures and a strong new business in the first three months of the new fiscal year.

Group revenue amounted to EUR 108.6 million (p/y: EUR 123.4 million) and total output equaled EUR 108.8 million (p/y: EUR 123.8 million). As described in the 2019 Annual Report, adjustments were made to revenue in the previous year due to accounting changes. EBIT before currency effects amounted to EUR 6.6 million (p/y: EUR 6.1 million); EBIT including currency effects totaled EUR 5.9 million (p/y: EUR 5.9 million). Net income for the period and earnings per share amounted to EUR 3.2 million (p/y: EUR 3.2 million) and EUR 1.04 (p/y: EUR 1.03) respectively.

Free cash flow increased to EUR 9.2 million (p/y: EUR 5.2 million) and net debt was reduced to EUR 124.6 million (December 31, 2019: EUR 132.5 million). The equity ratio rose to 30.6 percent (December 31, 2019: 30.1 percent). New business reached a level of roughly EUR 120 million (previous year: around EUR 130 million).

In April, the German and Czechia locations were operating at around a quarter of their capacity. The locations in China were operating at around three quarters of their capacity, and the sites in Canada and Mexico were completely closed. We are currently preparing for the slow ramp-up of automotive production during the month of May that was announced by our customers. Occupational health and safety remains a top priority.

The first easing of previously implemented restrictions is now becoming apparent worldwide. Despite this, it is not yet possible to foresee the future course of the corona pandemic or its further effect on consumer behavior and the economy. Still, with a high degree of flexibility and efficiency and by consistently taking advantage of the opportunities for financial stability, we are convinced that we can steer the Group safely through this severe economic crisis.

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.