• Slightly positive EBIT before currency effects in the first half of 2020
• Balance sheet structure essentially unchanged compared to December 31, 2019
• Outlook for second half-year not yet reasonably quantifiable

Oberkirch, July 23, 2020 - Due to the effects of the corona pandemic, PWO's business performance in the second quarter and the first half of 2020, based on preliminary figures, was predictably significantly weaker than in the previous year. 

Revenue in the second quarter declined sharply and EBIT before currency effects was negative. Revenue for the first half-year amounted to EUR 158.2 million (p/y: EUR 236.9 million), and EBIT before currency effects equaled EUR 1.0 million (p/y: EUR 10.8 million). The Czechia and especially the China locations contributed positively to this performance, while the other locations reported losses.

The balance sheet structure was essentially unchanged compared with the end of the previous fiscal year. The equity ratio of 30.3 percent as of June 30, 2020, was at the same level as of December 31, 2019 (30.1 percent). Net debt was reduced to EUR 122.5 million, compared with EUR 132.5 million at the end of the prior fiscal year. Our financial liabilities are linked to key financial indicators (financial covenants), which we met as of the June 30, 2020 reporting date. The credit lines committed at the end of the 2019 fiscal year are still available in full, and we continue to have access to extensive unused credit lines.

The future development of the automotive industry is still too uncertain to be used as a foundation for reliable corporate planning. Moreover, the discussions have not yet been concluded with our social partners regarding new supplementary wage agreements in order to reduce staff costs at the Oberkirch site. Only when these discussions have been concluded will we be able to determine the total amount of savings that can be achieved. For this reason, we cannot yet issue a new forecast for the current fiscal year.  

Disclaimer: EBIT before currency effects is not a performance measure pursuant to IFRS. Information on the calculation of this figure can be found on page 19 of the Annual Report 2019, which is available on the Company's website at https://www.progress-werk.de/en/investors-press/news-publications/reports/annual-report-2019/.

Progress-Werk Oberkirch AG
The Management Board