euro adhoc: ElringKlinger AG
Financial Figures/Balance Sheet
ElringKlinger
records growth of 15 percent in revenue and 28 percent in adjusted net income
after minority interests in the first half of 2007
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
6-month report
09.08.2007
Dettingen/Erms, August 9, 2007 - - - The ElringKlinger Group recorded a further improvement in sales revenues and earnings in the first six months of 2007. Group sales revenues increased by 15.1% to EUR 310.0 (269.3) million. Revenue also developed favorably over the course of the second quarter of 2007. Despite lower vehicle production figures within the European and American markets, ElringKlinger was able to propel Group revenue 17.8% upwards to EUR 157.0 (133.3) million. The most substantial percentage increases were achieved in Asia, North America and the non-domestic European markets. Successful product launches, the growing proportion of diesel engines within the market for new automobiles as well as buoyant demand for specialty gaskets and heat shielding components used in the vehicle exhaust tract combined to produce visible forward momentum.
Within the Original Equipment segment, sales revenues rose by 14.9% to EUR 221.1 (192.3) million in the first six months of 2007. In the second quarter, ElringKlinger lifted OEM sales revenues by 18.3% to EUR 114.2 (96.5) million. More palpable demand for spare parts - particularly in Eastern Europe and the Middle East - in combination with an expanded product range produced 17.4% growth in sales revenues within the Aftermarket segment in the first half of 2007, taking this figure to EUR 49.6 (42.3) million. In the second quarter sales revenues amounted to EUR 23.7 (20.1) million, 18.0% up on the figure posted for the same period a year ago. Within the area of Engineered Plastics, which is focused on the development and manufacture of products made of high-performance PTFE, the ElringKlinger Group achieved revenue growth of 13.0% to EUR 33.2 (29.4) million in the first six months. The Engineered Plastics segment also recorded an expansion in sales revenues in the second quarter, up by 13.2% to EUR 16.0 (14.1) million.
Focusing mainly on the expansion of production capacity and on projects designed to enhance efficiency levels ElringKlinger Group in the first half-year of 2007 invested a total of EUR 35.1 (21.1) million in property, plant and equipment as well as in real estate.
Substantial energy costs and the additional surge in raw material prices over the first half of 2007, particularly for high-grade steel, had an impact. In the first six months of 2007 cost of sales climbed to EUR 203.9 (174.6) million. The gross margin stood at 34.2% (35.2%). In the second quarter it reached 34.6% (35.4%). Selling as well as general and administrative expenses rose at a slower rate than revenue. In the first half-year of 2007 the ElringKlinger Group expended EUR 15.2 (14.1) million on research and development, a year-on-year increase of EUR 1.1 million.
The damages caused by the fire in mid-April 2007 and the subsequent interruption of operations at the Group's Runkel plant, are covered by the insurance of the ElringKlinger Group. As the insurance proceeds were in excess of the residual amounts to be written off in connection with damaged plant, machinery and buildings, non-recurring extraordinary income amounted to EUR 4.7 million in the second quarter.
Benefiting from efficiency gains and higher capacity utilization as well as several new product start-ups, ElringKlinger lifted EBITDA - having accounted for negative foreign currency effects equivalent to EUR 0.5 million - by 24.8% to EUR 83.8 (67.1) million in the first six months, thereby outpacing revenue growth. Adjusted for extraordinary income from insurance proceeds, EBITDA growth stood at 17.9%. In the second quarter, foreign currency effects remained neutral. Adjusted for extraordinary income, EBITDA rose by 23.6% to EUR 41.7 (33.7) million.
In the first six months, EBIT rose by 35.6% to EUR 62.1 (45.8) million. Having deducted extraordinary income, EBIT growth amounted to 25.4%. In the second quarter, ElringKlinger increased EBIT by 51.9% to EUR 35.1 (23.1) million. Adjusted for extraordinary income, EBIT amounted to EUR 30.4 million, which corresponds to an increase of 31.8%. The adjusted EBIT margin stood at 19.4% (17.3%).
Earnings before taxes rose from EUR 43.5 million in the first six months of 2006 to EUR 59.7 million in the first half of 2007, a year-on-year rise of 37.2%. Net of extraordinary income the growth rate for the first six months of 2007 was 26.5%. In the second quarter earnings before taxes rose by 55.5% to EUR 33.9 (21.8) million and by 34.1% after deducting extraordinary income.
Due to the reduction in the tax rate to 34.7% (35.4%), consolidated net income for the first half rose by 38.8% - i.e. at a more pronounced rate than pre-tax profit - to EUR 39.0 (28.1) million. Adjusted for extraordinary income attributable to the insurance proceeds, amounting to EUR 2.9 million after taxes, the year-on-year increase in net income stood at 28.3%. Based on a tax rate of 34.2% (34.9%), net income for the second quarter rose by 57.0% to EUR 22.3 (14.2) million. Net income adjusted for extraordinary income rose by 36.4% to EUR 19.4 million. After deducting minority interests, consolidated net income for the first half amounted to EUR 36.4 (26.1) million. This equates to a year-on-year increase of 39.4%. ElringKlinger was able to lift net income after minority interests, adjusted for extraordinary income, by 28.1% to EUR 33.5 million. In the second quarter, net income after minority interests increased by 57.3% to EUR 21.0 (13.4) million. Having deducted extraordinary income associated with the proceeds from the above-mentioned insurance claim, net income after minority interests was EUR 18.1 million, 35.3% higher than in the same period a year ago.
Earnings per share accounted for on the basis of IFRS rose from EUR 1.36 to EUR 1.90 in the first six months. Adjusted for exceptional items, earnings per share stood at EUR 1.74, which corresponds to a 28.1% increase compared with the same period a year ago. In the second quarter, ElringKlinger increased its earnings per share from EUR 0.70 to EUR 1.10. Adjusted for extraordinary income, earnings per share amounted to EUR 0.94.
Both order intake and order backlog developed well. Order intake increased by 15.5% to EUR 325.8 (282.1) million in the first six months. The second quarter accounted for EUR 171.7 (137.6) million in incoming orders. Thus, order intake for the second quarter of 2007 was 24.8% higher than in the same quarter a year ago. At the end of the second quarter, order backlog amounted to EUR 224.0 (190.5) million, i.e. 17.6% up on the figure posted at June 30, 2006.
Buoyed by the solid result achieved in the first six months, ElringKlinger is well on the way to exceeding the targets it had originally set itself for 2007. On this basis, ElringKlinger has defined a new target of approx. 10% growth in sales revenues for the 2007 financial year as a whole. Adjusted for non-recurring items, such as the extraordinary income from insurance proceeds, consolidated net income after minority interests is forecast to be approx. 15% higher than previous year's consolidated net income after minority interests adjusted for an extraordinary corporation tax credit item of EUR 5.3 million.
end of announcement euro adhoc 09.08.2007 07:32:44
Further inquiry note:
Stephan Haas
Investor Relations Manager
Telefon: +49(0)7123 724-137
E-Mail: stephan.haas@elringklinger.de
Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Börse Stuttgart / official dealing
Original content of: ElringKlinger AG, transmitted by news aktuell