EANS-Adhoc: ElringKlinger with double-digit growth in sales and EBIT in Q2
2012
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
03.08.2012
Dettingen/Erms, August 3, 2012 +++ Unfazed by the anemic state
of western European car markets, the ElringKlinger Group managed
to propel sales and earnings forward significantly in the first
six months of 2012. The Group expanded its sales revenue
worldwide, up 14.2% to EUR 569.8 (498.9) million. In the second
quarter 2012 - operating from a higher comparative base than in
Q1 - ElringKlinger saw revenue increase by a solid 12.4% to EUR
286.0 (254.4) million. Despite the as yet tangibly weaker profit
margins recorded by its recently acquired entities, the
ElringKlinger Group posted a disproportionately large increase
in earnings before interest and taxes (EBIT) in the first half
of 2012, up 22.9% to EUR 75.6 (61.5) million. In the second
quarter EBIT rose by 29.4%, reaching EUR 38.3 (29.6) million.
Buoyed by solid demand for new vehicles in the emerging markets
and North America, together with product ramp-ups and the first-
time contributions made by acquisitions, sales in the Original
Equipment segment, which generates the largest share of revenue
for the Group, increased by 15.8% to EUR 458.0 (395.5) million.
Consolidation of acquired entities contributes EUR 16.9 million
to revenue
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 16.9
million (EUR 7.7 million in Q2) to Group sales in the first half
of 2012. These entities had not been included in the scope of
consolidation in the first half of 2011 or had only been
consolidated on a pro-rata basis. At minus EUR 2.9 million
(minus EUR 0.7 million in Q2), their contribution to earnings
before taxes was negative in the first half of 2012, which was
mainly due to the earnings performance of the Hug Group.
Adjusted for the contributions by the consolidated entities,
organic revenue growth at Group level amounted to 10.8%.
In the first six months of 2012, Hug diluted earnings before
taxes by minus EUR 2.9 million, despite a gradual improvement in
its performance. By contrast, the earnings situation of the
former Freudenberg companies improved visibly. They had been
acquired effective from January 1, 2011, and had thus been
included fully in the scope of consolidation in the first half
of 2011. Having recorded a loss in the fourth quarter of 2011,
the former Freudenberg companies contributed EUR 27.0 million
(EUR 13.3 million in Q2) to revenue and EUR 0.5 million (EUR 0.3
million in Q2) to earnings before taxes at Group level, despite
the difficult sales climate within the French automotive market.
EBIT up 22.9% in first half
Higher staff costs were offset to a large extent by Group-wide
measures currently being introduced for the purpose of raising
efficiency levels as well as by more favorable market prices in
some commodity categories. At +11.6%, the cost of sales
increased at a slower rate than revenue in the first half of
2012. Thus, the gross profit margin improved year on year,
rising to 29.3% (27.6%) in the first half. In the first six
months of 2012, the ElringKlinger Group spent EUR 6.2 million
more on research and development, taking the overall figure to
EUR 30.4 (24.2) million. As a result, the R&D ratio increased to
5.3% (4.9%). Alongside a number of development projects for new
applications and products within the Group's core business, the
focus was on strengthening the E-Mobility division in
particular. Within this area, the company secured several
development projects and prototype contracts for cell contact
systems used in lithium-ion batteries. Recording substantial
outlays, this area generated revenue of EUR 3.8 million in the
first six months of 2012.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) rose by EUR 10.0 million year on year, taking the total
to EUR 115.4 (105.4) million in the first half of 2012. In the
second quarter of 2012, EBITDA was up EUR 1.3 million on the
figure posted in the first quarter, reaching EUR 58.3 million.
Despite the negative earnings contribution made by the acquired
entities in aggregate as well as substantial outlays with regard
to battery technology, the ElringKlinger Group managed to expand
its operating result by 15.9% to EUR 76.5 (66.0) million in the
first half of 2012. Of this total, an amount of EUR 37.5 (33.3)
million was attributable to the second quarter. The contribution
made by the aforementioned acquisitions, including the former
Freudenberg companies, diluted the Group's operating result by
minus EUR 1.9 million in the first half of 2012 and by minus EUR
0.6 million in the second quarter. The purchase price
allocations gave rise to a negative effect in the first half of
2012, equivalent to minus EUR 1.2 million (minus EUR 0.6 million
in Q2). Earnings before interest and taxes (EBIT) - in contrast
to the operating result, this indicator includes foreign
exchange gains and losses - rose by 22.9% to EUR 75.6 (61.5)
million in the first six months of 2012. Whereas EBIT was
reduced by foreign exchange losses of EUR 1.7 million in the
first quarter of 2012, foreign exchange rates produced a
positive effect in the second quarter that was equivalent to EUR
0.8 million. At EUR 38.3 (29.6) million, EBIT generated in the
second quarter was up 29.4% on the previous year's figure. The
EBIT margin rose to 13.4% (11.6%). Excluding the dilutive
effects attributable to the acquisition of the Hug Group, the
Hummel-Formen Group and ThaWa GmbH, as well as the as yet lower
margins contributed by the former Freudenberg companies relative
to the Group, the EBIT margin stood at 14.9% within the core
business.
In the first half of 2012, net finance costs were scaled back
from EUR 10.8 million to EUR 7.3 million. In the second quarter,
net finance costs stood at EUR 2.3 (7.0) million, an improvement
on the figure posted for the first three months of 2012 when
they had totaled EUR 5.0 (3.8) million. This was attributable
largely to foreign exchange effects.
The ElringKlinger Group saw its earnings before taxes expand by
25.5% to EUR 69.3 (55.2) million. At +34.2%, the increase in
earnings before taxes generated in the second quarter was even
slightly higher. In this period, the Group recorded pre-tax
earnings of EUR 35.3 (26.3) million. As a result of the
disproportionately large increase in earnings contributed by
subsidiaries with particularly high tax rates, the Group saw its
tax rate rise to 27.0% (26.1%) in the first half. On this basis,
the ElringKlinger Group recorded net income after minority
interests of EUR 49.5 (39.5) million in the first half of 2012.
In the second quarter net income after minority interests rose
by 34.6% to EUR 25.3 (18.8) million. Earnings per share amounted
to EUR 0.78 (0.62) in the first half of 2012. In the second
quarter earnings per share stood at EUR 0.40 (0.30).
Further increase in order intake during second quarter
The ElringKlinger Group remains solid with regard to incoming
orders. Despite the high comparative base in 2011, order intake
continued to expand in the second quarter of 2012. It rose by
13.1% to EUR 337.1 (298.1) million. As at June 30, 2012, order
backlog for the ElringKlinger Group totaled EUR 485.1 (447.4)
million, thus exceeding the previous year's figure by 8.4%.
Expansion in sales and EBIT, before one-time effects, for full
fiscal year
Based on the assumption of continued economic stability and
moderate expansion within global vehicle production, the
ElringKlinger Group anticipates that it will be able to increase
sales revenue by 5 to 7% through organic growth in fiscal 2012
as a whole. An additional revenue contribution of approximately
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. In
2011, the Hug Group had been included in the scope of
consolidation of the ElringKlinger Group on a pro-rata basis as
from May 1, 2011, while the Hummel-Formen Group had been
included on a pro-rata basis as from October 1, 2011.
The EBIT margin of the Group's core business will be diluted in
2012 as a result of the as yet much weaker margins recorded by
the acquired entities and the purchase price allocations
associated with these acquisitions. This will be compounded by
substantial lead costs incurred in the field of E-Mobility,
although it should be noted that sales will gradually expand.
Despite these effects, ElringKlinger remains confident that
earnings before interest and taxes, adjusted for one-time
charges, can be expanded at a faster rate than sales revenue.
Adjusted EBIT for the Group (EUR 126.0 million in 2011) as a
whole is expected to be in the range of EUR 145 to 150 million.
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
--------------------------------------------------------------------------------
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