EANS-News: Progress-Werk Oberkirch AG / PWO reports significant revenue and net income growth in first nine months of 2011

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

9-month report

Subtitle:
- High growth in revenue and total output
- Operating EBIT before currency effects improves further
- Net income and earnings per share up 44 percent
- 2011 revenue forecast to be exceeded; EBIT forecast confirmed

Oberkirch (euro adhoc) - Oberkirch, November 3, 2011 - Progress-Werk
Oberkirch AG has today published its interim financial report for the
third quarter and first nine months of 2011.

The Group continues to report high growth rates, and is not only
benefiting from the buoyancy of the car sector, but also, in
particular, from new series production runs that are currently
starting up, or are being ramped up. For the first time since we
launched our international expansion, all of our foreign sites are
also simultaneously reporting positive trends. As a consequence, we
have now passed the high point of our start-up and expansion costs on
the international markets.

Over the nine-month period of 2011, PWO grew its revenue by
25.6 percent to EUR 241.0 million (p/y: EUR 191.8 million), and its
total output by 23.3 percent to reach EUR 242.7 million (p/y:
EUR 196.9 million). The series production business continues to
report strong growth, and our tools business is running in line with
planning. Our reported growth also derived from the passing on of
materials price increases. By their nature, these revenue components
nevertheless generate no EBIT contributions, which affects the
respective margins.

EBIT for the first nine months of 2011 that was not impacted by
currency effects increased to EUR 13.0 million (p/y: EUR 11.4 million
for currency effects of EUR 0.1 million). Given unchanged financing
costs, and a marked reduction in the tax rate, net income and
earnings per share grew at a disproportionately rapid rate of
44 percent to reach EUR 5.2 million (p/y: EUR 3.6 million) and
EUR 2.09 respectively (p/y: EUR 1.45).

In the third quarter of 2011, revenue was up by 20.8 percent to
EUR 80.9 million (p/y: EUR 67.0 million), and total output grew by
23.8 percent to EUR 82.7 million (p/y: EUR 66.8 million). The
currency exchange rates that are relevant for us changed to our
benefit in the quarter under review, generating a positive effect of
EUR 1.4 million (p/y: minus EUR 1.5 million), which offset the
currency-related charges incurred during the first six months of the
year. These currency effects derive, in particular, from the
measurement as of the reporting date of intragroup loans whose
carrying amounts are unhedged against exchange rates. This
measurement effect contributed to the increase in third- quarter
reporting EBIT to EUR 5.2 million (p/y: EUR 2.8 million), and in net
income to EUR 2.7 million (p/y: EUR 0.0 million).

We registered positive trends before currency effects at all of our
foreign sites in the third quarter of 2011. In Canada and the Czech
Republic, sustainably positive EBIT results are meanwhile being
achieved. Series ramp-ups allowed Mexico to boost its revenue to
EUR 8.2 million in the third quarter of 2011, compared with EUR 4.5
million in the second quarter, and this site is operating on a
slightly profitable basis for the first time. Start-up and expansion
losses have been limited in China. As a consequence, the foreign
sites more than compensated for the weakening of EBIT at the
Oberkirch location over the course of the year, which is due to
start-up losses. This was reflected in the 9.2 percent increase in
consolidated operating EBIT before currency effects in the third
quarter compared with the second quarter.

With the business progress that we have reported to date in 2011, and
given the anticipated further course of business during the remainder
of this year, we will exceed our forecast revenue of approximately
EUR 300 million. Including the passing on of materials price
increases, we expect revenue of around EUR 330 million in the 2011
financial year. We confirm our forecast of operating EBIT of around
EUR 19 million before currency effects.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile PWO is one of the world's leading suppliers of
advanced metal components for automobile safety and comfort. The
company has developed unique knowledge in the forming and joining of
metals over the course of its over 90-year history since it was
founded in 1919. The German location at Oberkirch today employs
around 1,200 staff members. The Group is globally represented with
further sites in China, Canada, Mexico and the Czech Republic, and
employs around 2,300 staff around the world.

PWO is a partner to the global automotive industry for the
development and production of innovative products in the areas of
"Mechanical components for electrical and electronic applications",
"Safety components for airbags, seats and steering" and "Components
and systems for vehicle bodies and chassis".

Further inquiry note:
Bernd Bartmann (CFO)
Phone: +49 7802 / 84-347
Fax: +49 7802 / 84-789
e-Mail: bernd.bartmann@progress-werk.de

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: Progress-Werk Oberkirch AG
Industriestraße 8
D-77704 Oberkirch
phone: +49(0)7802 84-0
mail: info@progress-werk.de
WWW: http://www.progress-werk.de
sector: Automotive Equipment
ISIN: DE0006968001
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English