ElringKlinger AG / Key word(s): Final Results
28.03.2014 07:30
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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After record performance in 2013, ElringKlinger anticipates further growth
in revenue and earnings: major order for new lightweight components
Dettingen/Erms (Germany), March 28, 2014 +++ Despite difficult market
conditions and unfavorable foreign exchange effects, the ElringKlinger
Group set a new record in revenue and earnings in the financial year 2013.
Sales rose by 4.3% to EUR 1,175.2 (1,127.2) million. At an organic level,
growth stood at 6.0%, which was almost twice as much as the expansion in
global vehicle production. Earnings before interest and taxes (EBIT)
reached EUR 160.4 (135.8) million. Adjusted for one-time effects, EBIT rose
by 6.6% to EUR 144.7 million and included foreign exchange losses of EUR
4.6 million. Net income after non-controlling interests amounted to EUR
105.4 (85.7) million.
Despite the protracted weakness of the European vehicle markets, the
noticeable downturn in car sales in the BRIC states of Brazil, Russia and
India as well as the negative effects of foreign currency translation
equivalent to EUR 24.7 million, the ElringKlinger Group managed to propel
its sales revenue to a new annual record in 2013. Growth was fueled by a
favorable performance in Asia, significant export-driven demand and a
number of new product rollouts within the Original Equipment segment.
Control obtained over Marusan joint venture as part of expansion in Asia
The assumption of control over the 50:50 Japanese joint venture
ElringKlinger Marusan Corporation effective from December 31, 2013,
produced a one-off gain of EUR 17.6 million (EUR 12.7 million after taxes)
for the ElringKlinger Group. By contrast, there was as yet no revenue
effect in 2013. Having previously been included in the Group's scope of
consolidation at a proportionate rate of 50%, the joint venture was fully
consolidated as from December 31, 2013. As a result, Group sales revenue
will increase by around EUR 25 million in 2014 compared to the preceding
financial year, while proportionate earnings before taxes will expand by
approx. EUR 1.5 million year on year. Amortization of intangible assets
resulting from purchase price allocation and amounting to an estimated
figure of EUR 2.2 million will have a contrary effect in 2014.
Improved earnings performance of acquired companies: successful turnaround
at Hug
The companies acquired in 2011 - the Swiss Hug Group and the former
Freudenberg enterprises - saw an improvement in their earnings performance
in 2013. Exhaust abatement specialist Hug, in particular, has been
benefiting from extremely buoyant demand for exhaust gas purification
systems within the US retrofit market for heavy trucks as well as within
the area of inland shipping. As a result, sales surged to EUR 57.6 (36.6)
million. Having been faced with a loss before taxes of EUR 3.5 million in
the preceding year, Hug generated earnings before taxes of EUR 12.9 million
in 2013. The former Freudenberg enterprises in total also made a larger
earnings contribution. Whereas the German and Italian sites achieved
earnings that were well within positive territory, the French subsidiary
was again under par with a loss of EUR 2.5 million due to restructuring
measures.
Adjusted operating result up 8% - EBIT impacted by foreign exchange losses
The ElringKlinger Group's operating result rose by 19.0% to EUR 164.9
(138.6) million in 2013. This included non-recurring restructuring expenses
for the French site in Nantiat (EUR 1.8 million) and one-time expenses in
relation to market penetration measures in the aftermarket business (EUR
1.5 million). By contrast, non-recurring income from the step acquisition
of the Korean joint venture ElringKlinger Korea Co., Ltd. (EUR 1.4 million)
and, as detailed above, income from the assumption of control of
ElringKlinger Marusan Corporation (EUR 17.6 million) had a positive impact.
The adjusted operating result increased by 7.6% to EUR 149.2 (138.6)
million, while the adjusted operating margin was up at 12.7% (12.3%). In
this context, the operating result was burdened by considerable up-front
costs still associated with the E-Mobility division and poor capacity
utilization at the new plant in Dettingen, Germany, which was built in
particular for plastic housing modules used in the truck industry. The
negative contribution made by the French subsidiary also had an adverse
effect.
Adjusted EBIT rises to EUR 144.7 million
Earnings before interest and taxes (EBIT) includes the effects of
substantial foreign exchange losses of EUR 4.6 (2.9) million, which were
attributable primarily to the appreciation of the euro against the
Brazilian real and a number of Asian currencies. As a result, EBIT lagged
behind the operating result at EUR 160.4 (135.8) million. Adjusted EBIT
before non-recurring items stood at EUR 144.7 (135.8) million and therefore
grew at a faster rate than sales in percentage terms.
New record for net income
The Group managed to expand earnings before taxes to EUR 149.2 (123.6)
million. Eliminating the effects associated with the assumption of control
over ElringKlinger Marsuan Corporation, earnings before taxes still rose by
6.5% to EUR 131.6 million. Overall, the ElringKlinger Group's tax rate fell
slightly to 25.5% (27.8%) in 2013. On this basis, the ElringKlinger Group's
net income after non-controlling interests climbed to EUR 105.4 (85.7)
million. After adjusting for the non-recurring contribution to earnings
from the assumption of control at ElringKlinger Marusan Corporation, net
income for the period, after non-controlling interests, was up 8.2% at EUR
92.7 (85.7) million. Thus, earnings per share stood at EUR 1.66 (1.35) per
share, adjusted for the assumption of control at ElringKlinger Marusan at
EUR 1.46.
Strong growth in order intake
Order intake for the ElringKlinger Group rose by a significant 15.4% to EUR
1,309.8 (1,134.8) million in the financial year just ended. On this basis,
the increase in incoming orders was well above revenue growth.
Correspondingly, order backlog as of December 31, 2013, was up by 30.6% to
EUR 595.4 (456.0) million.
Embracing lightweight design for vehicle body and chassis parts with new
hydroforming hybrid technology
In addition, ElringKlinger announced that it had secured a contract from a
German vehicle producer for the supply of innovative lightweight components
made from metal-plastic materials. For the first time, the company will
combine the method of metal hydroforming with injection-molding for the
purpose of achieving significant weight savings. This will give
ElringKlinger a foothold in the rapidly growing and technologically
advanced market for lightweight body and chassis components. In this
context, the company has benefited from the expertise of the Hummel Group,
an acknowledged tooling specialist in the field of lightweight plastic
construction and now fully integrated within the ElringKlinger Group.
Serial production is scheduled to commence in 2015, and projected sales
over a six-year period are expected to be EUR 120 to 130 million in total.
Further revenue and earnings growth expected for 2014
Based on the assumption that global car production will expand by 2 to 3%,
the ElringKlinger Group anticipates that its revenue will grow by 5 to 7%
organically, thus outpacing the market as a whole. Full consolidation of
ElringKlinger Marusan Corporation will additionally contribute around EUR
25 million to revenue in 2014. Adjusted for non-recurring items, EBIT for
2014 is expected to reach a level of EUR 160 to 165 (144.7) million. For
the purpose of improved comparability, the financial indicator EBIT will in
future no longer be reported inclusive of foreign exchange effects, which
are almost fully attributable to financing activities. Thus, as is
standard, EBIT will correspond to the operating result reported in the
Group income statement. In total, the Group's EBIT margin is expected to
improve slightly compared to 2013.
For further information, please contact:
ElringKlinger AG - Investor Relations/Corporate PR
Stephan Haas
Max-Eyth-StraÃe 2
72581 Dettingen/Erms
Tel.: +49 (0)7123-724-137
E-Mail: stephan.haas@elringklinger.com
28.03.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: ElringKlinger AG
Max-Eyth-StraÃe 2
72581 Dettingen/Erms
Germany
Phone: 071 23 / 724-0
Fax: 071 23 / 724-9006
E-mail: stephan.haas@elringklinger.de
Internet: www.elringklinger.de
ISIN: DE0007856023
WKN: 785602
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München
End of Announcement DGAP News-Service
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DGAP-Adhoc: ElringKlinger AG: After record performance in 2013, ElringKlinger anticipates further growth in revenue and earnings: major order for new lightweight components
| Source: EQS Group AG