euro adhoc: ElringKlinger AG
quarterly or semiannual financial statement /
ElringKlinger generates growth in sales revenues of 12 percent and earnings
growth of 23 percent in the first half of the year
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
10.08.2006
> Consolidated net income after minorities increases 23% > Operating result 21% higher > Operating cash flow increases 58% > Order backlog 16% higher
Dettingen/Erms, August 10, 2006 - - - The ElringKlinger Group increased its sales revenues in the first half of 2006 by 12.2% to EUR 269.3 (240.0) million. Sales revenues also developed positively in the second quarter of 2006. Despite declining vehicle production figures in the triad markets and three fewer working days in the quarter when compared to the second quarter a year ago, ElringKlinger increased Group sales revenues to EUR 133.3 (123.0) million. The company generated the strongest growth in Asia, the NAFTA region and in South America. New product ramp-ups, growing demand for diesel engines and increasingly stricter emissions limits worldwide supported this trend.
The OEM segment generated disproportionately high growth in sales revenues. In the first six months of 2006, sales revenues in this segment increased by 15.3% to EUR 192.3 (166.8) million. In the second quarter, ElringKlinger increased sales revenues in the OEM segment by 12.5% to EUR 96.5 (85.8) million. The Shielding Technology division witnessed particularly strong growth. Additional product ramp-ups with the new, higher-performance stopper technology occurred in the Cylinder-Head Gaskets division.
In the first half of the year, sales revenues in the Aftermarket segment increased by 1.0% to EUR 42.3 (41.9) million. In the second quarter, revenues here amounted to EUR 20.1 (21.6) million due to three fewer working days and weaker demand in several Western European markets. In the second half of the year 2006, ElringKlinger expects sales revenues in the Aftermarket segment to increase once again.
The Engineered Plastics segment remained on a growth course. In the first half of the year, sales revenues in this segment increased by 11.0% to EUR 29.4 (26.5) million, with sales revenues in the second quarter amounting to EUR 14.1 (13.2) million. ElringKlinger is driving the internationalization of the engineered plastics business and the expansion of its product portfolio by enlarging its sales and R&D activities in this field.
The cost of sales in the first half of 2006 and also in the second quarter increased at a slower rate than sales revenues expansion. In the first six months 2006 cost of sales were 10.8% higher totalling EUR 174.6 (157.6) million. In the second quarter cost of sales amounted to EUR 86.1 (80.9) million. A further increase in energy and materials prices burdened the business. However, ongoing rationalization measures and continued increases in productivity allowed for an improvement in the gross margin. In the second quarter, the gross margin increased to 35.4% (34.2%). The number of employees grew at a slower pace than sales revenues. As of June 30, 2006, the number of employees at ElringKlinger Group reached 3,160 following 3,034 one year ago.
Due to higher capacity utilization and an increasing share of new products, ElringKlinger was able to increase operating earnings in the first half of the year from EUR 39.7 million to EUR 48.0 million. Growth of 20.9% was higher than the increase in sales revenues. In the second quarter of 2006, ElringKlinger generated an operating result of EUR 23.6 (20.6) million. The operating margin in the second quarter reached 17.7% following 16.7% in the prior year. EBITDA increased by 11.1% to reach EUR 67.1 (60.4) million in the first half of the year, which includes a negative exchange rate effect of EUR 2.2 million. In the second quarter, EBITDA amounted to EUR 33.7 (30.9) million with negative exchange rate effects of EUR 0.5 million. In the first six months of 2006, EBIT including negative exchange rate effects increased by 11.7% to EUR 45.8 (41.0) million. In the second quarter, ElringKlinger increased its EBIT to EUR 23.1 (21.0) million, which corresponds to an EBIT margin of 17.3% (17.1%).
Earnings before taxes in the first six months of 2006 increased 14.5% from EUR 38.0 million to EUR 43.5 million. Earnings before taxes in the second quarter were up 11.8% reaching EUR 21.8 (19.5) million. The decrease in the tax rate to 35.4% (38.2%) resulted in a disproportionately high increase in consolidated net income in the first half of 2006, which grew by 19.6% to EUR 28.1 (23.5) million. The increase was comparable in the second quarter. In this period, ElringKlinger increased its consolidated net income by 19.3% to EUR 14.2 (11.9) million. In the first half of 2006, consolidated net income after minority interests amounted to EUR 26.1 (21.3) million, which corresponds to an increase of 22.9% compared to the first half of 2005. In the second quarter, consolidated net income after minority interests increased by 23.0% to EUR 13.4 (10.9) million. Earnings per share in the first half of the year in accordance with IFRS increased by 22.9%, from EUR 1.11 to EUR 1.36. In the second quarter, ElringKlingers earnings per share were up 23.0% from EUR 0.57 to EUR 0.70.
Investments in tangible and intangible assets and in real estate held as a financial investment amounted to EUR 22.1 (22.3) million in the first six months of 2006. Once again, this investment was fully financed from net cash from operating activities, which increased from EUR 28.7 million in the first six months of 2005 to EUR 45.3 million in the first half of 2006.
The order intake and order backlog both developed positively in the first half of the year and in the second quarter. Order intake increased by 16.9% to EUR 282.1 (241.3) million in the first six months, and the order backlog was 16.1% higher at the end of the second quarter reaching EUR 190.5 (164.1) million. For the 2006 financial year, the company is confident that it will achieve the upper-end of its forecast range, which calls for an increase in sales revenues between 5 and 7% and an increase in earnings after taxes by 10 to 12%. Series production ramp-ups of new products contribute significantly to the companys anticipated growth.
end of announcement euro adhoc 10.08.2006 07:25:54
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: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade
Baden-Württembergische Wertpapierbörse / official dealing
Original content of: ElringKlinger AG, transmitted by news aktuell