euro adhoc: ElringKlinger AG
Financial Figures/Balance Sheet
New product
ramp-ups contribute to double-digit growth in 2007
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annual report
27.03.2008
Dettingen/Erms (Germany), March 27, 2008 +++ The ElringKlinger Group again succeeded in generating double-digit growth in both sales and earnings over the course of the 2007 financial year. Sales rose by 15.0% to EUR 607.8 (528.4) million, while net income at Group level grew by 29.7% to EUR 80.3 (61.9) million. The automotive supplier plans to unlock further sales and earnings growth during the 2008 financial year.
Sales growth was driven by all segments within the Group. Despite the visible decline in vehicle sales in the US and stagnation within the European car market, the Original Equipment segment managed to propel sales by 16.5% to EUR 435.5 (374.0) million in 2007. Benefiting from a broader product range and buoyant demand from Eastern Europe as well as the Middle East and South East Asia, the Aftermarket segment expanded its sales by 13.0% to EUR 94.8 (83.9) million. Within the Engineered Plastics segment, which manufactures high-performance PTFE products for various industries, sales rose by 10.2% to EUR 64.8 (58.8) million. Recording growth of 18.6%, the Group's international markets assumed a more prominent position. In South America sales rose by 23.6%, while North America expanded by 16.7%. Business in China and Korea also developed at an encouraging level.
Expenditure on the development of new products and technologies rose to EUR 29.8 (26.0) million in 2007, the main focus being on investments aimed at expanding production capacity and initiating production ramp-ups for new products in the portfolio. In total the Group´s payments for investments in property, plant and equipment and investment properties and intangible assets amounted to EUR 95.0 (49.6) million.
Earnings performance was influenced to a large extent by spiraling prices for raw materials and high energy costs. The cost of sales at Group level increased by 18.1%. However, capital expenditure directed at further automation projects and process improvements at all Group sites, together with the high capacity utilization of machinery and the growing share of new products in the portfolio, helped to lift earnings before interest and taxes (EBIT), having accounted for negative foreign currency effects, by 29.6% to EUR 121.0 (93.3) million. After deducting one-time gains of EUR 5.0 million from insurance proceeds in connection with the fire at one of the company's German production facilities, year-on-year EBIT growth amounted to 24.3%. Earnings before taxes rose by 31.1%, up from EUR 87.6 million in 2006 to EUR 114.9 million in 2007.
The corporate tax reform enacted by the German government necessitated a revaluation of deferred tax assets and deferred tax liabilities. This led to tax income of EUR 5.5 million, which was offset with income tax expense. The Group's income tax rate thus amounted to 30.1% (29.4%). Within this context, it should be noted that - also as a result of the corporate tax reform - a corporation tax credit of EUR 5.3 million had already had a tax-reducing effect in 2006.
Consolidated net income rose by 29.7% to EUR 80.3 (61.9) million. Adjusted for the one-time gain of EUR 3.2 million after taxes from insurance proceeds as well as for non-recurring income of EUR 5.5 million from deferred tax items, consolidated net income increased to EUR 71.5 (56.6) million, thus exceeding the previous year's figure - also adjusted for one-time tax effects - by 26.3%. After deducting minority interests, profit attributable to the shareholders of ElringKlinger AG (consolidated net income after minority interests) stood at EUR 75.9 (57.8) million, i.e. 31.4% higher than a year ago. Adjusted for one-off items, profit attributable to shareholders of ElringKlinger AG rose by 28.0%. Earnings per share were up from EUR 3.01 to EUR 3.95.
Shareholders are to profit from the Group's solid performance by receiving a dividend in excess of that paid for the previous financial year. The Management Board and Supervisory Board of ElringKlinger AG will be proposing to the General Meeting of Shareholders a dividend of EUR 1.40 (1.25) per share for the 2007 financial year.
ElringKlinger has begun the new financial year with a solid order backlog. Within the Original Equipment segment order backlog at the end of the 2007 financial year exceeded that recorded a year earlier by 17.7% Order intake rose by 15.4%.
ElringKlinger plans to lift Group sales by 5 to 7% in 2008. ElringKlinger plans to complement its organic growth by company acquisitions if a favorable opportunity arises. The announced takeover deal for the SEVEX Group, a Swiss-based specialist within the field of thermal and acoustic shielding systems, is about to be closed. Raw material and energy prices are likely to remain at an elevated level. Within this context, ElringKlinger plans to grow earnings stronger than sales and achieve a pronounced increase in consolidated net income after minority interests - excluding non-recurring items - for the 2008 financial year by streamlining its costs and launching new products.
end of announcement euro adhoc
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: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Börse Stuttgart / regulated dealing