EANS-Adhoc: Group sales up 9.1% in 2012 - Adjusted EBIT below expectations
despite growth
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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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annual result/Preliminary Figures
08.03.2013
Dettingen/Erms, March 8, 2013 +++ The ElringKlinger Group
again grew significantly faster than the global vehicle markets
in 2012. Based on preliminary figures, the Group saw its sales
revenue expand by 9.1% to EUR 1,127.2 million (1,032.8) million,
slightly more than originally targeted. Preliminary earnings
before interest and taxes (EBIT) stood at EUR 136.0 (148.7)
million. Adjusted for the one-time gain recorded in the previous
year from the disposal of the Ludwigsburg industrial park (EUR
22.7 million), EBIT rose by 7.9%, thus falling short of the
original target corridor of EUR 145 to 150 million for 2012.
Foreign exchange losses of EUR 2.9 million exerted downward
pressure on EBIT, as did the purchase price allocations of EUR
2.3 million attributable to corporate acquisitions.
Earnings performance weaker in Q4
The significantly weaker sales and thus earnings contributions
made by the Aftermarket and Engineered Plastics segments
narrowed EBIT. Besides exceptional factors and non-recurring
items towards the end of the year, had a dilutive effect on
EBIT. Earnings were adversely affected by necessary adjustments
of EUR 2.0 million to investee inventories.
At EUR 277.6 (269.6) million, the fourth quarter was slightly
above target in terms of sales revenue, almost matching the
figure recorded for the preceding quarter (EUR 279.8 million).
However, both the Aftermarket and the Engineered Plastics
segment had to contend with particularly weak sales. As a
result, the pro-rata contribution made to Group sales by these
more profitable segments was extremely unfavorable in the fourth
quarter. At the same time, when compared to the third quarter,
sales included a significantly higher proportion of lower-margin
tooling revenue for serial production projects commencing in
2013.
Against the backdrop of an anemic vehicle market in Western
Europe and the reduction of stock levels by some customers, the
French subsidiary ElringKlinger Meillor SAS saw its fourth-
quarter earnings deteriorate by around EUR 1.1 million compared
to the preceding quarter. By contrast, exhaust specialist Hug
Engineering AG put in a more encouraging performance. Its
contribution to fourth-quarter earnings before taxes was just
within positive territory for the first time. What is more, it
managed to secure a number of contracts for the supply of
exhaust gas purification systems for power plants and ships.
The Group's operating result for the fourth quarter of 2012
stood at EUR 25.8 (27.2) million; before purchase price
allocation, it amounted to EUR 26.3 million. EBIT, which in
contrast to the operating result takes account of foreign
exchange gains and losses, was diluted by negative foreign
exchange effects of EUR 1.4 million and purchase price
allocations of EUR 0.5 million in the fourth quarter. As a
result, EBIT totaled EUR 24.4 (27.0) million, or EUR 24.9
million before purchase price allocation, in the fourth quarter.
Acquisitions contribute to sales revenue
Alongside market expansion and the rollout of new products,
revenue growth was also driven by acquisitions. The
consolidation of acquired companies that had not been included
in the Group financial statements in 2011 or had only been
accounted for on a pro-rata basis contributed an incremental EUR
19.3 million to Group sales in 2012. In 2011, the Swiss exhaust
gas purification specialist Hug Engineering AG had only been
included in the scope of consolidation for a period of eight
months, while the Hummel-Formen Group had only been accounted
for in the Group accounts for three months. The company formerly
trading as ThaWa GmbH was consolidated as from January 1, 2012.
For the full year 2012 these companies contributed EUR 48.2 mn
to Group sales. Including the former Freudenberg entities
acquired in early 2011 the acquisitions contributed EUR 98.0
million to Group sales in 2012. The contribution made by all
acquired companies to Group earnings before taxes had a dilutive
effect of minus EUR 4.2 million in total.
Adjusted operating result up 8.2% for full 2012 financial year
ElringKlinger posted an operating result of EUR 138.9 (151.1)
million for the 2012 financial year as a whole. In this
context, it should be noted that the previous year had included
one-off exceptional income of EUR 22.7 million from the sale of
an industrial park. Adjusted for this non-recurring item, the
Group managed to lift its operating result by 8.2%. Having
eliminated non-recurring items, the operating margin for 2012
remained largely unchanged year on year at 12.3% (12.4%).
EBIT adjusted for non-recurring items up 7.9%
Earnings before interest and taxes (EBIT) were adversely
affected by foreign exchange losses of EUR 2.9 million.
Therefore, at EUR 136.0 (148.7) million, EBIT was weaker than
the Group's operating result. Compared to EBIT for the previous
year (EUR 126.0 million), adjusted for the one-time gain on
disposal of the industrial park, this corresponds to an
increase of 7.9%. The adjusted EBIT margin was 12.1% (12.2%).
Excluding the dilution of earnings attributable to the
acquisition of the Hug Group, the Hummel-Formen Group and
former ThaWa GmbH - the latter having already been integrated
into ElringKlinger AG - as well as to the Freudenberg
companies, which as yet generate lower margins in Group
comparison, the ElringKlinger Group recorded an EBIT margin of
around 13.5% in its core business in 2012.
Adjusted earnings before taxes grow faster than operating result
Group earnings before taxes amounted to EUR 123.8 (136.6)
million. Excluding the above-mentioned exceptional gain recorded
in the previous year, the ElringKlinger Group managed to
increase its earnings before taxes by 8.7%.
Adjusted net income after minority interests up 9.6% on previous
year
The tax rate fell to 27.8% (28.6%). On this basis, the
ElringKlinger Group recorded net income after minority interests
of EUR 85.9 (94.9) million in 2012. Adjusted for the one-time
gain of EUR 16.5 million (after taxes) in the previous year, the
Group saw net income after minority interests expand by 9.6%.
Order intake in positive territory for annual period
In 2012, order intake within the ElringKlinger Group rose by
4.2% in total to EUR 1,134.8 (1,089.0) million. At EUR 260.8
(272.6) million, order intake in the fourth quarter of 2012 was
down 4.3% on the figure recorded in the same quarter of the
previous year. As of December 31, 2012, order backlog stood at
EUR 456.0 (448.4) million, up 1.7% on the figure recorded a year
ago.
Further growth planned for sales and earnings in 2013
Based on the assumption of stagnating to slightly expanding
global vehicle production, the ElringKlinger Group will be
targeting organic revenue growth of 5 to 7% in 2013. Should
global car production merely stagnate, revenue growth is more
likely to be positioned at the lower end of this range. The
operating margin attributable to ElringKlinger's core business
will be adversely affected as a result of the as yet below Group
average aggregated profit margins of the acquired entities and
the associated purchase price allocations as well as the up-
front costs relating to the E-Mobility division. However, the
dilutive effects will be less pronounced in 2013. Overall,
ElringKlinger anticipates that earnings before interest and
taxes (EBIT), adjusted for one-time effects, will expand at a
more pronounced rate than sales revenue. Against this backdrop,
adjusted EBIT is expected to range from EUR 150 to 155 million
in 2013 (EUR 136.0 million in 2012).
The announcement of preliminary results for the business year
2012 will be accompanied by a conference call today, March 8,
2013, at 9.30 a.m. CET. The full announcement of the results for
fiscal 2012 is scheduled for March 28, 2013.
Preliminary and unaudited results for the financial year 2012
and the fourth quarter of 2012
in EUR million Q4 Q4 FY FY
2012 2011 Change 2012 2011 Change
Sales revenue 277.6 269.6 +3.0% 1,127.2 1,032.8 +9.1%
Gross profit 64.8 78.2 -17.1% 312.4 288.7 +8.2%
Operating
result 25.8 27.2 -5.1% 138.9 128.4* +8.2%
Net finance costs 4.2 2.9 +44.8% 15.1 14.5 +4.1%
Earnings before
taxes 21.6 24.3 -11.1% 123.8 113.9* +8.7%
Net income 14.4 14.6 -1.4% 89.4 81.1** +10.2%
Profit attributable
to shareholders of
ElringKlinger AG 13.2 14.3 -7.7% 85.9 78.4** +9.6%
Earnings per share
(in EUR) 0.21 0.23 -8.7% 1.36 1.24** +9.7%
EBITDA 43.3 58.0 -25.3% 215.4 222.8* -3.3%
Depreciation/
amortization 18.9 31.0 -39.0% 79.4 96.8 -18.0%
EBIT 24.4 27.0 -9.6% 136.0 126.0* +7.9%
*Excluding one-time income of EUR 22.7 million from sale of
Ludwigsburg industrial park
**Excluding one-time income of EUR 16.5 million (after taxes)
from sale of Ludwigsburg industrial park
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: free trade: Berlin, München, Düsseldorf, regulated dealing:
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English