euro adhoc: ElringKlinger AG
Financial Figures/Balance Sheet
ElringKlinger
with double-digit sales revenues and earnings growth in 2006
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Results BY 2006
29.03.2007
> Consolidated net income after minority interests grows by 36% > EBIT growth of 21% > Proposed dividend of EUR 1.25 per share > Order intake improves by 13% year on year
Dettingen/Erms, March 29, 2007 - - - The ElringKlinger Group achieved double-digit growth in sales revenues and earnings in the 2006 financial year. Group sales revenues rose by 11.3% to EUR 528.4 (474.6) million.
Sales revenues growth was driven by all segments within the Group. The company benefited from a number of new product start-ups, as well as from stricter emission limits worldwide and the growing trend towards diesel engines, particularly in Europe. Sales revenues within the Original Equipment segment rose by 13.4% to EUR 374.0 (329.9) million. The Aftermarket segment generated growth of 3.3%, taking its sales revenues to EUR 83.9 (81.2) million. The most pronounced growth rate was recorded in Asia, where sales revenues increased by 28.1%. Within the Engineered Plastics segment, which is responsible for manufacturing products made of the high-performance plastic PTFE, sales revenues rose by 10.7% to EUR 58.8 (53.2) million.
2006 saw a further surge in raw-material and energy prices. Consequently, cost of sales rose by 6.5% to EUR 338.7 (318.0) million at Group level. Supported by further automation and efficiency increases within the area of production workflow at all Group locations, as well as a favorable product mix with a greater proportion of higher-margin products, the operating result rose by 28.1% to EUR 96.1 (75.0) million. Having accounted for negative exchange rate effects of EUR 2.6 million, earnings before interest and taxes (EBIT) grew faster than sales revenues in 2006, rising by 20.9% to EUR 93.3 (77.2) million. In the 2005 financial year, EBIT had been buoyed by positive exchange rate effects of EUR 2.2 million. The EBIT margin for 2006 was 17.7%, compared with 16.3% for the prior year.
In total, the financial result that comprises net interest and earnings from affiliated companies fell to EUR -8.4 (-4.1) million, mainly due to foreign exchange effects. Earnings before taxes rose by 23.6%, up from EUR 70.9 million in 2005 to EUR 87.6 million in 2006. At 29.4% (34.3%), the income tax rate within the Group was 4.9 percentage points lower than in the previous year. This was attributable to an amendment to the German Corporation Tax Act. ElringKlinger capitalized the existing entitlement at a discounted present value of EUR 5.3 million in the period under review and thus recorded one-time additional income in the same amount.
Consolidated net income for the year thus rose faster than earnings before taxes, increasing by 32.9% to EUR 61.9 million, compared with EUR 46.6 million in the prior financial year. After deducting minority interests of EUR 4.1 (4.2) million, ElringKlinger recorded a consolidated net income after minorities of EUR 57.8 (42.4) million, which represents a year-on-year increase of EUR 15.4 million or 36.3%. Consolidated net income after minority interests - excluding the one-time income from corporation tax credits - increased by 23.7% to EUR 52.5 (42.4) million. Earnings per share (IFRS) rose to EUR 3.01 (2.21).
Net cash from operating activities increased by 28.1% to EUR 89.9 (70.1) million, thus allowing the Group to finance planned growth fully from internal funds. This also provides the basis for a dividend increase of 25%. Thus, the Management Board of ElringKlinger AG, with the consent of the Supervisory Board, will propose to the Annual General Shareholder Meeting a dividend payment of EUR 1.25 (1.00) per share for the 2006 financial year.
ElringKlinger has begun the new financial year with full order books. Within the Original Equipment segment order backlog at the end of fiscal 2006 was 17.2% higher than in 2005, while order intake at Group level rose by 12.8%.
Operating from a significantly higher revenue base, ElringKlinger plans to lift Group sales revenues by 5 to 7% in 2007. The Group anticipates that both the cost of materials and energy prices are likely to remain at a relatively high level. Against the backdrop of current market conditions, ElringKlinger plans to increase consolidated net income after minority interests - excluding the exceptional item of one-time income from corporation tax credits in 2006 - by approx. 10% in the current 2007 financial year.
end of announcement euro adhoc 29.03.2007 07:37:21
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