euro adhoc: ElringKlinger AG
Earnings Forecast
ElringKlinger Anticipates
Additional Income in Q4 from Corporation Tax Credit and also Raises Profit
Forecast for 2006
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
18.12.2006
Dettingen/Erms, December 18, 2006 - - - As a result of the latest amendment to Germany's Corporation Tax Act, ElringKlinger expects additional income of around EUR 5 million in the fourth quarter for fiscal 2006 as a whole.
In accordance with the revised version of Section 37 (5) of the Corporation Tax Act, for the first time corporation tax credits attributable to preceding years will be capitalized as an entitlement to payout, i.e. a tax asset.
The tax asset has a tax-reducing effect for the period from 2008 to 2017 and will thus lead to a corresponding reduction in cash outflow distributed over this 10-year period. The full claim for refund becomes effective from as early as the end of December 31, 2006. In view of this, ElringKlinger will capitalize the existing entitlement on a discounted basis. The present value to be recognized as a tax asset corresponds to approximately EUR 5 million. The reported net income for the Group as a whole will increase in fiscal 2006 correspondingly. The amendment to the Tax Corporation Act will merely result in a change in the statement of the existing tax credits.
The Company anticipates that it will exceed its original annual revenue and earnings targets for fiscal 2006. Group sales revenue had been forecast to rise by 5 to 7%, while the growth target for consolidated net income after minorities had been set at 10 to 12%. ElringKlinger is now targeting an increase in Group sales revenue to approximately EUR 520 (474.6) million. Adjusted for the additional effect of the revised accounting policy for corporation tax credits amounting to approximately EUR 5 million, the Company anticipates that consolidated net income after minorities, which was EUR 42.4 million in 2005, will rise by approximately 20% compared with fiscal 2005.
end of announcement euro adhoc 18.12.2006 19:05:51
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