EANS-Adhoc: ElringKlinger sees expansion in sales and earnings for first quarter of 2012
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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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10.05.2012
Dettingen/Erms, May 10, 2012 +++ The ElringKlinger Group again
outpaced global car production in terms of percentage growth in
the first quarter of 2012. Benefiting from solid demand for
vehicles in the emerging markets and North America, as well as
new product ramp-ups, the ElringKlinger Group propelled sales
revenue by 16.1% to EUR 283.8 (244.5) million. Despite foreign
exchange losses, EBIT rose by 16.6% to EUR 37.3 (32.0) million
in the first quarter of 2012. ElringKlinger saw net income after
minority interests expand by 16.3% to EUR 24.2 (20.8) million.
Consolidation of acquired entities contributes EUR 9.2 million
to Group revenue
The largest proportion of revenue growth generated within the
Group during the first quarter of 2012 was again attributable to
the Original Equipment segment, which lifted sales by 18.1% to
EUR 225.8 (191.2) million.
The inclusion of the acquired Hug Group, the Hummel-Formen Group
as well as Hug supplier ThaWa GmbH in the scope of consolidation
of the ElringKlinger Group contributed a total of EUR 9.2
million in sales revenue during the first quarter of 2012. At
minus EUR 2.2 million, their overall contribution to Group
earnings before taxes was in negative territory in the first
quarter of 2012, primarily due to the financial performance of
the Hug Group. This figure included a negative component of EUR
0.6 million attributable to the purchase price allocations.
Adjusted for the contributions by the acquired entities, organic
revenue growth at Group level amounted to 12.3%.
The financial performance of the former Freudenberg companies,
which were acquired effective from January 1, 2011, and had thus
been included in the scope of consolidation in the first quarter
of 2011, showed signs of improvement. Having posted a loss in
the previous quarter, the former Freudenberg companies
contributed EUR 13.7 million in total to sales generated in the
first quarter of 2012 and EUR 0.2 million to earnings before
taxes.
Operating result up by 19.3%
The gross profit margin was up compared to the previous quarter
(29.0%), reaching 29.5% (27.3%). This improved figure was
attributable to Group-wide measures aimed at raising efficiency
levels, as well as the fact that material prices remained stable
to a large extent. The cost of sales increased at a less
pronounced rate than revenue, up by 12.5% to EUR 199.9 (177.7)
million. The staff profit-sharing bonus of EUR 1,150 per
employee for members of ElringKlinger AG, ElringKlinger
Kunststofftechnik GmbH and Elring Klinger Motortechnik GmbH
workforce, as agreed for the financial year 2011, has already
been accounted for as other liabilities, thus resulting in total
expenses of EUR 3.3 (2.5) million in the first quarter of 2012.
In the first quarter of 2012, research and development expenses
were EUR 3.0 million up on last year's first-quarter figure. R&D
cost rose to EUR 15.0 (12.0) million, pushing the R&D ratio up
to 5.3% (4.9%). Alongside development work on new applications
and products within the Group's core business, the focus was on
strengthening the E-Mobility division. At present around 60
specialists employed in this division are involved in various
development projects and prototyping contracts for cell contact
systems used in lithium-ion batteries. Recording substantial
preexpenses, this area generated revenue of EUR 2.1 million in
the first three months of 2012.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) totaled EUR 57.0 (53.3) million in the first quarter,
which corresponds to year-on-year growth of 6.9%. The purchase
price allocation relating to recent acquisitions had a negative
effect of EUR 0.6 million in total. Despite the negative earnings
contribution by the acquired entities and the outlays associated
with battery technology, the Group's operating result rose by
19.3% to EUR 39.0 (32.7)million in the first quarter of 2012.
Thus, the latter expanded at a more pronounced rate than sales
revenue. The Group's operating margin in the first quarter of
2012 stood at 13.7% (13.4%).
Earnings before interest and taxes (EBIT), which in contrast to
the operating result includes foreign exchange gains and losses,
rose by 16.6% to EUR 37.3 (32.0) million. Foreign exchange
losses of EUR 1.7 (0.7) million had a negative impact on the
Group's earnings before interest and taxes in the first quarter
of 2012. The EBIT margin was 13.1% (13.1%). Adjusted for the
dilutive effects attributable to the acquisitions of the Hug
Group, the Hummel-Formen Group and ThaWa GmbH, as well as the as
yet significantly lower margins contributed by the former
Freudenberg companies relative to the Group, the EBIT margin
stood at 14.8% within the core business.
As a result of higher interest expenses, together with foreign
exchange losses, net finance costs rose to EUR 5.0 (3.8) million
in the first quarter of 2012. Against this backdrop, the
ElringKlinger Group saw its earnings before taxes expand by
17.6% to EUR 34.0 (28.9) million.
The tax rate rose to 27.6% (25.6%), which was attributable
mainly to the more substantial earnings contributions by Group
companies with a particularly high tax rate. ElringKlinger AG
scaled back minority interests over the course of 2011 in line
with corporate planning by acquiring additional ownership
interests. As a result, profit attributable to non-controlling
interests was down to just EUR 0.4 (0.7) million in the first
quarter of 2012. The ElringKlinger Group recorded net income
after minority interests of EUR 24.2 (20.8) million, which
corresponds to a year-on-year increase of 16.3%. Thus, basic and
diluted earnings per share stood at EUR 0.38 (0.33) in the first
quarter of 2012.
Sustained growth in order intake
The Group's situation in terms of orders placed by customers
remained solid as at March 31, 2012. On the back of very solid
order intake in the first quarter of the previous year, incoming
orders continued to trend higher in the first three months of
2012, up 3.4% to EUR 269.4 (260.5) million. Compared with the
previous three months (EUR 272.6 million), order intake dipped
slightly in a quarter-on-quarter comparison, but nevertheless
remained at a high level. Order backlog for the ElringKlinger
Group totaled EUR 434.0 (369.0) million as at March 31, 2012.
This represents an increase of 17.6% on the same quarter a year
ago.
Expansion in sales and EBIT before one-time effects planned for
full fiscal year
The ElringKlinger Group anticipates that global vehicle
production as a whole will expand slightly in 2012. Against this
backdrop, the Group plans to raise sales revenue by 5 to 7% in
2012 in terms of organic growth. An additional revenue
contribution of around EUR 20 million is expected from the
consolidation of recently acquired Hug Engineering AG, the
Hummel-Formen Group and ThaWa GmbH, which in 2012 will be
included in the scope of consolidation for a full annual period
for the first time. The consolidated entities acquired will see
an improvement in their overall earnings situation in 2012,
having as yet contributed negative aggregate earnings. However,
the EBIT margin of the Group's core business will nevertheless
be diluted to some extent as a result of the as yet weaker
margins recorded by the acquired entities, the purchase price
allocations associated with these acquisitions and the
substantial outlays attributable to the E-Mobility division.
Despite these effects, ElringKlinger anticipates that EBIT,
adjusted for non-recurring items, will grow faster than sales
revenue in percentage terms. Group EBIT adjusted for non-
recurring items is expected to be in a range of EUR 145 to 150
million (EUR 126.0 million in fiscal 2011).
Further inquiry note:
ElringKlinger AG
Investor Relations / Corporate Communications
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-137
E-Mail:stephan.haas@elringklinger.com
end of announcement euro adhoc
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issuer: ElringKlinger AG
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
phone: +49(0)7123 724-0
FAX: +49(0)7123-7249000
mail: info@elringklinger.com
WWW: http://www.elringklinger.com
sector: Automotive Equipment
ISIN: DE0007856023
indexes: MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Berlin, München, Düsseldorf, regulated dealing:
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English
Original content of: ElringKlinger AG, transmitted by news aktuell