Progress-Werk Oberkirch AG: PWO reports good business performance in first half of 2022

Dr. Cornelia Ballwießer (CFO): “We are continuing to navigate the PWO Group safely through the current general economic and geopolitical challenges. This underscores our positive business performance in the first six months.”
 

• All locations are contributing to the positive performance
• New business grows for the fourth quarter in a row
• General economic risks have increased substantially, especially for the gas supply in Europe
• Forecasts for fiscal 2022 therefore unchanged
   

Oberkirch / Valašské Meziříčí / Kitchener / Puebla / Suzhou / August 9, 2022 – The PWO Group had a successful first half of fiscal 2022. This was thanks to the start-up and ramp-up of new series production combined with cost reductions. We also reached amicable solutions with our customers on price adjustments due to increased costs of materials. A weaker euro also had a positive effect.

Almost all locations improved their contributions to earnings. The locations in China, like the nation’s economy in general, were affected by the strict local measures ordered by the Chinese government to curb the coronavirus pandemic.

New orders performed particularly well: The lifetime volume of new business rose for 4 quarters in a row. In the second quarter of 2022, we achieved almost double the volume of the second quarter of 2021. Our business model, which is entirely independent of internal combustion engines, combined with a global sales approach and the focus on our development capabilities, remains a key factor in our success. On this basis, we are also increasingly tapping new market opportunities beyond our conventional product solutions and sales markets.

The PWO Group’s key performance indicators for the first half of 2022 are as follows:

• Revenue: EUR 258.1 million (PY: EUR 213.7 million)
• EBIT before currency effects^*: EUR 16.9 million (PY: EUR 13.3 million)
• EBIT including currency effects: EUR 17.0 million (PY: EUR 13.2 million) 
• Net income for the period: EUR 10.7 million (PY: EUR 8.8 million)
• Capital expenditure: EUR 10.4 million (PY: EUR 6.1 million)
• Free cash flow: EUR -8.1 million (PY: EUR -1.4 million)
• Equity ratio: 35.7% (December 31, 2021: 33.6%)
• Lifetime new business volume: Around EUR 465 million (PY: around EUR 265 million)

^* Translation effects occur when converting the financial statements of our subsidiaries prepared in foreign currencies. These are not included in adjusted EBIT.

The risks of global economic development increased in the first half of 2022. Similarly, conditions for the automotive industry have deteriorated. There are ever-mounting concerns over the future of Europe’s gas imports. It is impossible to predict at this time whether the supply of gas from Russia will be cut off partially or in full in the second half of 2022.

While we require virtually no gas for our production or can switch to alternative energy sources, in light of these factors we rate the risks for future economic development in Germany and Europe and thus, indirectly, for our business performance in H2 2022 as high and are retaining our previous forecasts with no changes. We constantly monitor the situation closely and will refine in particular our discussion of the impact of gas supply on our business performance and prospects and, where necessary, update our forecast as soon as possible.

The half-year report has been published on PWO’s website at https://www.pwo-group.com/en/investors-press/news-publications/reports/.

Progress-Werk Oberkirch AG

The Executive Board

Contact:
Charlotte Frenzel
Investor Relations & Corporate Communications
T. +49 179 / 6904 237
M. charlotte.frenzel.ext.ma@progress-werk.de

Corporate profile of the PWO Group