EANS-News: ElringKlinger AGM approves dividend increase: solid start to fiscal 2010
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. --------------------------------------------------------------------------------
Annual & Special Corporate Meetings
Dettingen/Erms (euro adhoc) - Stuttgart, Dettingen/Erms, May 21, 2010 +++ MDAX-listed ElringKlinger AG declared a dividend payment of EUR 0.20 (prev. year: EUR 0.15) per share for fiscal 2009, a year still heavily affected by the economic and financial crisis. The actions of the Management Board and Supervisory Board were ratified by a large majority of the shareholders attending the Annual General Meeting. Pointing to a positive start to fiscal 2010, the Management Board expects to achieve significant growth in sales and earnings in the year as a whole.
Addressing an audience of 700 shareholders, shareholder representatives and guests at the Liederhalle Cultural and Congress Center in Stuttgart, CEO Dr. Stefan Wolf presented details of the company's business performance over the course of one of the most challenging financial years in the history of the automotive industry. "We used 2009 to set a course that will allow us to return to profitable growth as early as 2010," said Dr. Wolf. The ElringKlinger Group had swiftly responded to the dramatic market slump by initiating a comprehensive cost-reduction program targeted at non-personal and staff costs, the positive effects of which were seen over the course of the fiscal year just ended.
Against the backdrop of the severe slump in sales within the international vehicle industry, the ElringKlinger Group, too, was faced with a decline in sales, with revenue contracting by 11.9% to EUR 579.3 (657.8) million in 2009. Despite this downturn, the Group achieved earnings before interest and taxes (EBIT) of EUR 63.3 (71.5) million. Net income after minority interests fell by 16.6% to EUR 33.2 (39.8) million.
Broad approval of all items on the agenda 99.8% and 99.3% respectively voted in favour of ratifying the actions of the Management Board and Supervisory Board. Upon expiry of the term of office of the Supervisory Board members appointed by the company's shareholders, the company called new elections for these posts. There was strong approval from the Annual General Meeting for the reappointment of those candidates put forward as shareholder representatives.
PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft, Stuttgart, was appointed as the new independent auditor for the fiscal year 2010.
The company's shareholders approved a year-on-year increase in the dividend from EUR 0.15 to EUR 0.20 for the fiscal year 2009 just ended. Calculated on the basis of profit attributable to the shareholders of ElringKlinger AG, the dividend ratio was 54.6%.
Shareholders adopted a resolution authorizing the company for a period of five years to acquire treasury shares with a total value of up to 10% of the company's share capital existing at the date of this resolution. Furthermore, the company was granted the right to increase its share capital by up to EUR 28.8 million in the period up to 2015.
The attending shareholders also passed a resolution stating that the place at which a General Meeting of Shareholders is convened may also correspond to the location of the company's registered office.
CO2 reduction - path to growth Under the heading of "CO2 - Our Path to Growth", ElringKlinger showcased the latest products and technology developed by the respective business divisions of the parent company and the Group subsidiaries as part of an exhibition held in the foyer of the Cultural and Congress Center. Alongside the range of classic ElringKlinger products for the optimization of combustion engines, the main focus of those attending the event was on pioneering solutions within the New Business Areas segment. Demonstrating that they had fully embraced drive technology of the future, the company's apprentices unveiled a model car which they had designed themselves - equipped with a fuel-cell drive system.
Solid start to the year: strong sales and earnings growth in 2010 Based on the assumption that automobile markets would continue to recover and that economic conditions would remain stable, and in view of the positive performance of the first quarter of 2010, the ElringKlinger Group had recently revised upwards its revenue and earnings targets for the annual period as a whole. In the first quarter, the Group managed to propel consolidated sales by 40.9% to EUR 182.7 (129.7) million. At present, the company is targeting growth in full year sales revenue of 10 to 13% (previously 7 to 10%). EBIT is to be expanded by 20 to 25% (previously 12 to 15%), i.e. at a more pronounced rate than sales revenue.
Addressing the Annual General Meeting, CEO Dr. Stefan Wolf reaffirmed his confidence in the company's prospects for the future: "Our strong positioning with a range of products tailored to CO2 reduction as well as our high-potential technology pipeline within the area of fuel cell solutions and battery components provide a solid basis when it comes to building ElringKlinger's competitive advantage." In view of the extensive number of new product ramp-ups, the company's strong regional positioning in the future growth markets of Asia and South America as well as the recent improvement in market conditions, Wolf sees an opportunity for the company to match its pre-crisis sales performance by as early as 2011.
end of announcement euro adhoc --------------------------------------------------------------------------------
Further inquiry note:
For further information, please contact:
ElringKlinger AG
Corporate Communications / Investor Relations
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-631; +49 (0)170-9246264;
Fax: +49 (0)7123-724-641
E-mail: stephan.haas@elringklinger.de
Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: MDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Düsseldorf / free trade
München / free trade
Stuttgart / regulated dealing
Original content of: ElringKlinger AG, transmitted by news aktuell