PWO AG / Key word(s): Change in Forecast/Half Year Results
Ad hoc disclosure in accordance with Article 17 MAR
PWO more confident for fiscal 2023 and raises latest forecasts
Oberkirch, July 26, 2023 – The PWO Group is currently preparing its half-year financial report for fiscal 2023.
Indications are emerging that the previous risk assessments of possible losses due to current cost increases in various ongoing orders and production start-ups have improved. First agreements with our customers and our additional measures to reduce costs across the global location portfolio are starting to take effect and processes in new production start-ups are becoming more routine, with the result that the intended savings will presumably largely be achieved.
We are therefore raising our forecast for EBIT before currency effects in fiscal 2023 to between EUR 23 million and EUR 26 million (previously: EUR 20 million to EUR 23 million; fiscal 2022: EUR 27.5 million).
According to provisional figures, we have generated revenue of EUR 280.5 million (previous year: EUR 258.1 million) and EBIT before currency effects of EUR 14.9 million (previous year: EUR 16.9 million) in the first half of 2023. The decline is mainly due to still ongoing negotiations with customers regarding the massive cost increases on a broad scale. We feel that these discussions are progressing well, and we are confident that they will be concluded with a fair outcome for all parties.
In the first 6 months of 2023, we generated a significantly higher lifetime new business volume than expected of around EUR 415 million (previous year: around EUR 465 million) and have therefore already achieved the lower end of our current forecast range for fiscal 2023. We are optimistic for the further contract awards coming up in the second half of 2023 and are therefore raising our new business forecast to between EUR 700 million and EUR 800 million (previously: EUR 400 million to EUR 500 million).
All our locations are benefiting from new orders received in the first half of 2023. The larger volumes for the locations in Mexico and China are a particular highlight. Our innovative solutions for climate-friendly lightweight components at the very frontiers of what is technologically possible are sought after the world over. Customers put their faith in our high capacity for innovation and the reputation for the utmost delivery reliability and quality that we have built up over decades. This forms a strong foundation for the continued systematic and successful implementation of the profitable growth strategy of the PWO Group in the years ahead.
Our outlook is still based on the assumptions that there will be no major disruptions to supply chains in 2023, for example due to pandemic-related restrictions or economic sanctions, that energy will be available in sufficient quantities and that there will be no significant deviations from the anticipated price developments.
EBIT before currency effects and the life-time volume of new business are not IFRS indicators. Information on how these figures are determined can be found on pages 38 and 33 of the 2022 annual report.
The publication of the half-year financial report is scheduled for August 8, 2023.
All reports of the PWO Group are published on its website at https://www.pwo-group.com/en/investors-press/news-publications/reports/.
Progress-Werk Oberkirch AG
The Executive Board
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Investor Relations & Corporate Communications
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