EANS-News: Progress-Werk Oberkirch AG / PWO records an improvement in earnings in the second quarter of 2009

- Increase in the number of standby orders from series production in
the second quarter
- Significant savings result from cost-cutting
measures
- Operating profit recorded again on a monthly basis
-
Further growth in revenues expected in the third quarter

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finances

Oberkirch (euro adhoc) - Oberkirch, 5 August 2009 - Revenues from
series production increased significantly in the second quarter of
2009 compared with the first three months of the year. At the same
time, the cost-cutting measures implemented are taking effect,
allowing the com-pany to once again record a positive EBIT in June
and only a moderate net loss. Our largest plant in Oberkirch even
achieved an operating profit again in May. However, we are still a
long way from normality, as a comparison with the previous year´s
figures shows.

Overall, the company achieved revenues of EUR 49.1 million (2008: EUR
71.7 million), a total output of EUR 51.2 million (2008: EUR 72.1
million) and an EBIT of EUR -2.2 million (2008: EUR 4.6 million).
This includes non cash exchange rate losses of EUR 1.1 million. Loss
for the period amounted to EUR 3.1 million (2008: a profit of EUR 2.4
million) and earnings per share were EUR -1.27 (2008: EUR 0.96).
Compared with the first quarter of 2009, revenues and total output
increased by 19%. We were also able to more than half the negative
EBIT.

In the first half of 2009, revenues of EUR 90.5 million were achieved
(2008: EUR 138.6 million), total output amounted to EUR 94.2 million
(2008: EUR 145.1 million) and EBIT was EUR -7.2 million (2008: EUR
8.4 million). This includes non cash exchange rate losses of EUR 1.4
million. Loss for the period amounted to EUR 7.7 million (2008: a
profit of EUR 4.4 million) and earnings per share totalled EUR -3.09
(2008: EUR 1.75).

The individual production plants, led by Oberkirch as the technology
and competence centre of the company, have adapted flexibly to the
changed market conditions. The plant in the Czech Republic has found
its stride and is performing positively - supported by sustained
substantial growth in revenues. Both of our plants in the NAFTA
region are still negatively affected by the decline in market volume,
which is especially severe in that part of the world. While our
established plant in Canada has for the most part been able to adapt
so far, additional measures are required in Mexico and are currently
being implemented. The developments in China are progressing
according to plan.

Cash flow from operating activities was positive in the second
quarter at EUR 0.5 million. For the first half of 2009, it was EUR
-7.7 million (2008: EUR 11.7 million). This clearly negative figure
was mainly due to the repayment of current liabilities in the first
quarter (without financial credit) amounting to EUR 8.9 million,
which resulted in particular from the reduction in trade payables.
Without this reduction in current liabilities, the cash flow in the
first half of 2009 would have been balanced out, despite the loss for
the period. Investments were reduced from EUR 5.2 million in the
first quarter of 2009 to EUR 2.0 million in the second quarter.

Our financing partners supported the necessary increase in
liabilities to banks. In the first half of 2009, we were able to
finalise various additional financing agreements for our expansion
abroad as well as for new investments. This is enough to cover not
only the bor-rowing requirements for 2009 but also partly for 2010.

The current materials scheduling of our customers points to further
stabilisation in the third quarter of 2009. The number of anticipated
serial release orders is still fluctuating considerably, meaning that
a sound forecast on how business will develop is not yet possible.
Overall, we are confident that we will be able to reduce the loss
from the first half of the year over the next six months; however a
net profit for the year is not likely.

Progress-Werk Oberkirch AG
Executive Board

PWO company profile: PWO is one of the world´s leading suppliers of
superior metal parts in the area of car safety and comfort. Since the
company was founded in 1919, it has developed a unique know-how in
the shaping and joining of metals. The German plant in Oberkirch
currently has around 1,100 employees. The company is represented
globally, with sites in the Czech Republic, China, Mexico and Canada,
and employs around 1,900 people.

PWO is a partner in the automobile industry for the development and
production of innovative products: by the millions, just-in-time and
of excellent quality. In close cooperation with our customers, PWO´s
international production sites are being expanded to supply foreign
markets. This means that considerable successes have already been
achieved, which means that PWO has con-tracts that will once again
lead to growth in the coming years - regardless of whether the market
fully recovers or not.

end of announcement euro adhoc
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ots Originaltext: Progress-Werk Oberkirch AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Bernd Bartmann (CFO)

Phone: +49 7802 / 84-347

Fax: +49 7802 / 84-789

Branche: Automotive Equipment
ISIN: DE0006968001
WKN: 696800
Börsen: Frankfurt / regulated dealing/prime standard
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