EANS-News: Progress-Werk Oberkirch AG / PWO - recession impacts on first quarter of 2009

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Finanzen

Oberkirch (euro adhoc) - Oberkirch, May 5, 2009 - The international
automotive industry experienced a further dramatic global downturn at
the beginning of 2009. The unprecedented slump seen already in the
fourth quarter of 2008 worsened at the beginning of 2009. Compared to
the first quarter of 2008, where we achieved record sales, the PWO
Group´s revenue fell by 38.2% to EUR 41.4 million (p/y 66.9) in the
first three months of 2009. Sales from series production decreased
even more sharply as revenue from tooling operations climbed to EUR
4.9 million (p/y 2.7). Change of inventories was significantly lower
than in the previous year, too. Thus total output declined more
sharply than revenue by 41.1% to EUR 43.0 million (2008: EUR 73.0
million).

After the severe downturn at the beginning of 2009, an increase in
revenue of over 20% compared to the average of the first two months
was achieved in series production in March. This signifies a slight
improvement, but does not yet represent a return to break-even
capacity utilisation. Material input was adjusted to the development
of total output. The material expense ratio stood at 55.6% (p/y
55.8%). However, the other expense ratios rose in part sharply,
despite short-time working at the Oberkirch site as from February, a
slight fall in depreciation and amortisation and a significant
decline in other operating expenses. Overall, EBIT came in at EUR
-5.0 million (p/y 3.8).

Interest expenses increased to EUR 1.3 million (p/y 1.1), with EBT
standing at EUR -6.3 million (p/y 2.7). Net profit for the period was
EUR -4.6 million (p/y 2.0) after tax credit of EUR 1.7 million (2008:
a tax burden of EUR 0.8 million) owing to losses before taxes.
Earnings per share of EUR -1.82 (p/y 0.79) were posted for the first
quarter of 2009.

None of our production sites were able to avoid exposure to the
downturn. There were higher-than-average declines in revenue and
total output at the German site Oberkirch falling by 40.5% to EUR
32.7 million (p/y 55.0) and 43% to EUR 34.1 million (p/y 59.8)
respectively. In contrast, our Czech production site continued to
grow as indicated earlier with revenue increasing to EUR 3.9 million
(p/y 2.3) and total output climbing to EUR 4.6 million (p/y 3.4). The
second large press started production here at the beginning of the
year as planned. The site in Kitchener, Canada, posted a very weak
development of revenue and total output compared to the group average
following the sharp downturn in the North American market. The
decline at the Puebla site, Mexico, was somewhat less acute. We did
not achieve any revenue in Asia in the first quarter of 2009 since we
withdrew from our joint venture, as explained in the 2008 Annual
Report, and our own subsidiary only began production after the end of
the reporting quarter.

We were able to increase our credit liabilities in cooperation with
our financial partners who continue to support us through the current
crisis. Moreover, an agreement on the financing of international
activities was concluded with an additional banking partner. Cashflow
from operating activities stood at EUR -8.2 million (p/y 3.6) in the
first quarter of 2009. Without the repayment of current liabilities
of EUR 7.9 million, the cashflow would have been almost beak-even.

Planning for future models is being continued in the automotive
industry despite the difficult economic climate. This represents new
opportunities for PWO towards which we are working intensively and
with total commitment. We achieved further success in the quarter
under review thanks to high levels of technical expertise and
globally competitive cost structures. After a leading international
automotive group selected us to develop and manufacture the European
order volume of the module carrier for a new global vehicle
production platform in 2007, we have now also won the order volume
for North America. We also won an order from a German premium
manufacturer for the development and production of module carriers
for its high-volume production platform. In total, both major orders
represent a sales volume of around EUR 180 million and will ensure
the return to a high level of capacity utilisation at both the
European and North American PWO production sites. The series ramp-up
is scheduled for 2010/2011.

To cushion the impact of the current fall in revenue, business
management focuses on extensive cost limitation in the current
financial year. However, future-oriented projects and development
activities will be pursued without restriction. Moreover, top
priority is ensuring the group´s liquidity. We also anticipate
significant declines in the second quarter compared to the previous
year, albeit not quite as high as in the first quarter. As our
customers currently do not offer reliable forecasts for 2009
continued uncertainty surrounding future trends means it is currently
not possible to make well-founded projections about future
performance of the business. In view of the decline in standby orders
from our customers so far, we cannot rule out the possibility of
posting a loss for the full 2009 financial year. Due to the high
volume of new orders, we can, however, be optimistic for the future.

Progress-Werk Oberkirch AG
The Management Board

Please note: The complete quarterly report is available at the
Progress-Werk Oberkirch AG website (www.progress-werk.de / Investor
Relations / Reports)

Ende der Mitteilung euro adhoc
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ots Originaltext: Progress-Werk Oberkirch AG
Im Internet recherchierbar: http://www.presseportal.de

Rückfragehinweis:

Bernd Bartmann, Member of the Board

Phone: +49 7802 / 84-347

Fax: +49 7802 / 84-789

e-Mail: bernd.bartmann@progress-werk.de

Branche: Auto
ISIN: DE0006968001
WKN: 696800
Börsen: Börse Frankfurt / Regulierter Markt/Prime Standard
Börse Berlin / Freiverkehr
Börse Hamburg / Freiverkehr
Börse Stuttgart / Freiverkehr
Börse Düsseldorf / Freiverkehr
Börse München / Freiverkehr