ElringKlinger setting a course for growth in North America
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Dettingen/Erms, November 02, 2006 +++ Automotive supplier ElringKlinger has registered a high level of growth on the North American market and the company has been able to substantially expand its customer base on the continent in the last few months. Today, besides Ford and GM, customers also include DaimlerChrysler, as well as vehicle and engine manufacturers like International, Cummins, Caterpillar, and Mack Truck.
ElringKlinger has booked order volumes of US-$ 41 million per annum just since the beginning of 2006, all for contracts that are set to go into production successively from the second half of 2007 until 2010.
Despite a difficult market situation in the USA, North America is, in addition to Asia, one of the most important growth regions for the automotive supplier. ElringKlinger increased sales revenue in the first half of the year by 23% in both markets.
Stricter US emissions legislation is reflected in an increased need for modern diesel technology especially for trucks and light trucks as well as increasing requirements for exhaust aftertreatment systems. Here, ElringKlinger is able to profit from a growing demand for advanced cylinder head gasketing, cam cover modules and specialty gasket systems for the exhaust tract. The company has registered solid growth in North America with their products for thermal shielding and further expanded its NAFTA site that produces heat shields in Toluca, Mexico.
ElringKlinger sees potential in the increasing importance of diesel engines for the US market. The sulfur-reduced Clean Diesel fuel that has been available in the US since mid October, as well as diesel engine development from various manufacturers, provide good opportunities for diesel in the USA over the next few years. Consistently high fuel prices are the reason why low-consumption diesel is growing in popularity with American vehicle buyers.
Dr. Wolf, CEO and Chairman of the Board of ElringKlinger AG, foresees lasting growth opportunities: "We want to do more than just acquire new customers in North America - we also want to expand with new product approaches dealing with reductions in emissions and consumption, as well as alternative drive technologies. The fact that we are able to do this in a difficult market situation pleases us all the more."
In the 2005 financial year, the ElringKlinger Group achieved worldwide sales revenues of EUR 474.6 million. In the 2006 financial year, the company projects sales revenues to grow by 5 to 7% and consolidated net income is expected to increase by 10 to 12%. In the event that the favorable economic climate continues, ElringKlinger expects to reach clearly the upper end of this range forecast. Start of production for new products in the classic markets and the expansion of business in new markets will be decisive factors for this planned growth.
end of announcement euro adhoc 02.11.2006 15:30:00
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
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