EANS-Adhoc: Preliminary results: ElringKlinger sales up 27% in second
quarter of 2011 - Operating result down slightly due to
acquisitions
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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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Preliminary results second quarter 2011
26.07.2011
Dettingen/Erms, July 26, 2011 +++ Supported by buoyant demand
for cars and the rollout of new products, sales revenue
generated by the ElringKlinger Group in the first half of 2011
rose by 30.0% to EUR 498.9 (383.7) million according to
preliminary results. In the second quarter, the Group saw sales
revenue increase by 26.6% to EUR 254.4 (201.0) million. The flat
gaskets business acquired from the Freudenberg Group and the
first-time consolidation of Swiss-based exhaust treatment
specialist Hug Engineering AG contributed EUR 20.7 million to
sales revenue in the second quarter.
Operating result rose by 14.6% in the first six months, reaching
EUR 66.0 (57.6) million. At EUR 33.3 (34.3) million, the Group's
operating result in Q2 2011 declined by 2.9% compared to the
buoyant second quarter of 2010, primarily as a result of the
lower margins currently generated by the newly acquired
entities. ElringKlinger's net income after minority interests
stood at EUR 18.8 (20.6) million for the period under review.
Although global car production contracted slightly in the second
quarter compared to the first three months of 2011, the
ElringKlinger Group managed to generate further quarter-on-
quarter growth in sales revenue in the second quarter, driven by
the introduction of new products in the Original Equipment
segment. The surge in demand for parts was particularly
noticeable within the German market, as well as in Asia and
South America. Adjusted for the contribution made by
acquisitions, sales revenue increased by 16.3%. On this basis,
the percentage growth in sales revenue achieved by ElringKlinger
was again palpably higher than the rate of expansion in global
vehicle production.
First-time contribution by newly acquired Hug Engineering AG
Effective from May 1, 2011, Swiss-based exhaust treatment
specialist and manufacturer of diesel particulate filters Hug
Engineering AG, in which ElringKlinger holds a majority
interest, was included fully in the scope of consolidation of
the ElringKlinger Group for the first time. Hug contributed EUR
6.7 million to Group sales in the second quarter of 2011. Owing
to the purchase price allocation of EUR 0.3 million and negative
foreign exchange effects, its contribution to earnings before
taxes was minus EUR 0.8 million.
The former flat gaskets business of the Freudenberg Group
contributed EUR 14.0 million to sales revenue in the second
quarter of 2011 and minus EUR 0.6 million to earnings before
taxes. This figure includes the purchase price allocation of EUR
0.1 million as well as EUR 0.4 million attributable to non-
recurrent staff costs incurred as a result of the partial
relocation of production in Germany to the manufacturing site in
France, which is located in closer proximity to customers. In
order to bring the efficiency of the acquired businesses up to
Group level, ElringKlinger is undertaking comprehensive
integration measures. Especially with Hug there is substantial
cross selling potential to be realized.
Slight decline in operating result
The significantly lower gross margins currently generated by the
new acquisitions exerted downward pressure on the Group's gross
margin, equivalent to approx. 1.5 percentage points.
Furthermore, the substantial cost of materials, as well as the
introduction of special shifts in several areas of production,
prompted a year-on-year increase in costs. In parallel, the
lower proportion of revenue generated through aftermarket sales
had a dampening effect. Compared with the first quarter of 2011
(27.3%), however, the Group's gross margin rose to 27.9% in the
second quarter. Selling expenses as well as general and
administrative expenses increased at a faster rate than sales
revenue in the second quarter, partly as a result of the
acquisitions. Committed to expanding the area of E-Mobility,
the ElringKlinger Group increased the overall costs associated
with research and development by 16.2% to EUR 12.2 (10.5)
million. Government grants received by ElringKlinger in the
second quarter amounted to EUR 0.6 (1.4) million.
At EUR 33.3 (34.3) million, the Group's operating result in the
second quarter of 2011 was 2.9% down on last year's result for
the same period. The operating margin was 13.1% (17.0%).
Adjusted for the dilutive effect on earnings associated with the
acquisition of Freudenberg and Hug operations, the operating
margin of ElringKlinger's core business was 14.6%. Earnings
before interest and taxes (EBIT) - this includes foreign
exchange gains and losses - were adversely affected by negative
foreign exchange effects equivalent to EUR 3.8 million and thus
totaled EUR 29.6 (31.6) million. On this basis, the EBIT margin
for the second quarter of 2011 stood at 11.6%; adjusted for the
dilutive effects of the newly consolidated acquisitions, the
EBIT margin was 13.1%.
Negative foreign currency effects were a key factor in driving
up net finance costs to EUR 7.0 (5.6) million in the second
quarter. Earnings before taxes thus amounted to EUR 26.3 (28.6)
million in the period under review. After taxes and minority
interests of EUR 0.6 (1.0) million, net income for the second
quarter of 2011 totaled EUR 18.8 (20.6) million. Earnings per
share stood at EUR 0.30 (0.36).
Order intake remains dynamic
Order intake continued to show signs of dynamic growth and again
came in noticeably higher than revenue in the second quarter of
2011, up 22.1% to EUR 298.1 (244.1) million. As at June 30,
2011, order backlog (excluding Hug) stood at EUR 412.7 (303.1)
million, which was 36.2% up on the same quarter last year.
Based on the record levels achieved in order intake, the
continued stability in terms of economic performance and the
rate of expansion predicted within the automotive markets, the
ElringKlinger Group currently expects to generate organic
revenue growth of 12 to 14% (previously 5 to 7%) in 2011. This
will be complemented by a revenue contribution of around EUR 50
million from the consolidation of the metal flat gaskets
business acquired from the Freudenberg Group as well as a
revenue contribution of approx. EUR 30 million from the Swiss-
based Hug Group. As a result, Group sales revenue for fiscal
2011 is expected to reach EUR 970 to 985 million.
The Group's operating margin in 2011 will be diluted
temporarily. This is due primarily to the operating margins
generated by the recent acquisitions, which are as yet
considerably lower than the Group average, and the purchase
price allocation. Despite the temporary dilutive effects
attributable to the acquisitions, start-up costs for the
expanding E-Mobility unit and higher commodity prices,
Group EBIT is expected to rise by 15 to 25% (previously 15 to 25%).
The announcement of the preliminary results for the first half
and second quarter of 2011 will be accompanied by a conference
call on July 26, at 10:00 a.m. (CEST). The detailed results and
financial report for the second quarter of 2011 will be
published on August 4, 2011.
Results 2nd Quarter 2011 and 1st Half 2011
|in EUR millions |Q2 |H1 |
| |2011 |2010 |Change |2011 |2010 |Change |
| | | |in % | | |in % |
| | | | | | | |
|Sales revenue |254.4 |201.0 |26.6 |498.9 |383.7 |30.0 |
| | | | | | | |
|Gross profit |71.1 |62.6 |13.6 |137.9 |116.4 |18.5 |
| | | | | | | |
|Selling expenses |16.7 |12.9 |29.5 |31.5 |26.2 |20.2 |
| | | | | | | |
|General and |9.5 |6.9 |37.7 |17.9 |13.8 |29.7 |
|administrative | | | | | | |
|expenses | | | | | | |
| | | | | | | |
|Research and |12.2 |10.5 |16.2 |24.2 |21.4 |13.1 |
|development costs| | | | | | |
| | | | | | | |
|Other operating |1.6 |4.1 |-61.0 |3.5 |5.5 |-36.4 |
|income | | | | | | |
| | | | | | | |
|Other operating |0.9 |2.1 |-57.1 |1.7 |2.9 |-41.4 |
|expenses | | | | | | |
| | | | | | | |
|Operating result |33.3 |34.3 |-2.9 |66.0 |57.6 |14.6 |
| | | | | | | |
|Net finance costs|-7.0 |-5.6 |25.0 |-10.8 |-10.1 |6.9 |
| | | | | | | |
|Earnings before |26.3 |28.6 |-8.0 |55.2 |47.6 |16.0 |
|taxes | | | | | | |
| | | | | | | |
|Net income |19.4 |21.6 |-10.2 |40.8 |35.7 |14.3 |
| | | | | | | |
|Profit |18.8 |20.6 |-8.7 |39.5 |34.2 |15.5 |
|attributable to | | | | | | |
|shareholders of | | | | | | |
|ElringKlinger AG | | | | | | |
| | | | | | | |
|Earnings per |0.30 |0.36 |-16.7 |0.62 |0.59 |5.1 |
|share | | | | | | |
|(in EUR) | | | | | | |
| | | | | | | |
|EBITDA |52.1 |52.6 |-1.0 |105.4 |94.3 |11.8 |
|EBIT |29.6 |31.6 |-6.3 |61.5 |53.9 |14.1 |
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: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Düsseldorf, München, regulated dealing: Stuttgart
language: English