PWO: Provisions keep things in the red

Progress-Werk Oberkirch, or PWO for short, has presented figures for the third quarter of 2020. According to company information on Tuesday, sales fell from 108.5 million euros to 99.2 million euros. Provisions for personnel adjustments at the Oberkirch location in the amount of 10 million euros had a negative impact on earnings. Before interest and taxes, PWO reports a loss of 4 million euros for the third quarter of 2020, which means that the result has deteriorated by 7.5 million euros compared to the same period in the previous year.

“All foreign locations achieved a pleasingly positive EBIT before currency effects in the third quarter. Particularly noteworthy is the good profitability in China. At the Oberkirch location, EBIT before currency effects and provisions for personnel adjustments was at break-even, ”said PWO.

On a nine-month basis, the company reports an increase in free cash flow from 14.2 million euros to 22 million euros. Sales decreased from 345.3 million euros to 257.4 million euros, while EBIT fell by 17.2 million euros to a loss of 2.9 million euros.

For the current year 2020, PWO expects sales of 350 million euros and a loss before interest and taxes. The background to this is the “high provisions”. “The free cash flow will be significantly influenced by the specific design of the personnel adjustments,” says the company about the outlook.

At a glance – chart and news: PWO – Progress Oberkirch plant

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