EANS-News: Progress-Werk Oberkirch AG / PWO reports good business trends in the third quarter of 2010

- Third-quarter operating EBIT before currency effects reaches
highest level of current financial year
- Accounting currency
effects burden quarterly results
- 2010 revenue and EBIT forecast
confirmed

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9-month report

Subtitle: - Third-quarter operating EBIT before currency effects
reaches highest level of current financial year - Accounting currency
effects burden quarterly results - 2010 revenue and EBIT forecast
confirmed

Oberkirch (euro adhoc) - Oberkirch, November 2, 2010 - Today,
Progress-Werk Oberkirch AG presents its interim financial report for
the third quarter and first nine months of 2010. In the quarter under
review, the Group has further augmented the strong operating trend of
the first two quarters of 2010.

Given stable series revenues, total revenue including tools amounted
to EUR 67.0 million in the quarter under review (Q2/2010: EUR 63.4
million). Operating EBIT before currency effects improved to EUR 4.3
million (Q2/2010: EUR 3.2 million). Negative currency effects
burdened third-quarter results to the tune of EUR 1.5 million. These
are nevertheless accounting effects resulting from higher
volatilities on currency markets, and do not reflect our sites'
operating trends.

We are, in any case, assuming that we will achieve our forecast
revenue growth in ex-cess of 20 percent in 2010 to more than EUR 250
million, and EBIT of around EUR 15 million, also excluding currency
gains. For this reason, this forecast remains valid.

In overall terms, revenue amounted to EUR 67.0 million in the quarter
under review (p/y: EUR 54.3 million), total output to EUR 66.8
million (p/y: EUR 55.6 million), and EBIT to EUR 2.8 million (p/y:
EUR 0.0 million). Despite the strongly negative currency effects,
breakeven was achieved at the net income level (p/y: EUR -1.5
million). Over the nine-month period, revenue amounted to EUR 191.8
million (p/y: EUR 144.8 million), total output to EUR 196.9 million
(p/y: EUR 149.9 million), EBIT to EUR 11.5 million (p/y: EUR -7.2
million), and net income for the period to EUR 3.6 million (p/y: net
loss of EUR -9.3 million).

The marked enhancement of Group operating profitability was achieved
particularly at the German site. The foreign sites reported stable
operating trends. The fact that the Czech site reported significant
growth in the third quarter compared with the second quarter is a
particularly pleasing aspect, and the location is meanwhile well on
its way to achieving a clearly positive EBIT result for the first
time in 2010. The site in Canada developed within the scope of
budgets, and is preparing for the start-up of new major pro-duction
of cross-members. As expected, the locations in Mexico and China
continue to report figures in the red.

We have stringently restricted the tying up of capital in the balance
sheet over the course of 2010. Total assets expanded only moderately,
despite high growth. As a consequence, the key balance sheet ratios
remained stable over the course of the third quarter, and also
unchanged compared with the 2009 financial year. The equity ratio
amounted to 30.4 percent as of the September 30, 2010 balance sheet
date (December 31, 2009: 30.0 percent), and net debt fell slightly to
EUR 77.7 million (December 31, 2009: EUR 79.1 million). Gearing (net
debt expressed as a percentage of equity) has meanwhile improved to
118.1 percent (end-2009: 128.7 percent). We will continue with this
positive trend over the coming years.

Cash flow from operating activities amounted to EUR 17.4 million
during the nine-month period. As a consequence, we are well on the
way to achieving our objective of free cash flow breakeven in the
2010 financial year (after investments and interest paid), although
we are still budgeting a marked increase investments for the fourth
quarter to around EUR 20 million, and despite the fact that
third-quarter free cash flow was still negative. Cash outflows for
investments totalled EUR 11.6 million over the first nine months of
2010, and EUR 3.6 million of interest payments were disbursed. Free
cash flow correspondingly amounted to EUR 2.2 million.

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
fur-ther sites in China, Canada, Mexico and the Czech Republic, and
employs around 2,000 staff around the world.

PW0 is a partner to the global automotive industry for the
development and production of innova-tive 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".

Series orders currently on hand will result in significant growth at
all sites over the next two years, irrespective of full market
recovery.

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

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

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