EANS-News: ElringKlinger sales exceed one billion euro mark for the first time
in 2011
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Financial Figures/Balance Sheet
Dettingen/Erms (euro adhoc) - Dettingen/Erms (Germany), March 29, 2012 +++
In 2011, the ElringKlinger Group yet again outpaced global vehicle production in
terms of percentage growth. The Group saw its sales revenue expand by 29.8% to
EUR 1,032.8 (795.7) million. Earnings before interest and taxes exceeded the
previous year's
figure by 39.4%, rising to EUR 148.7 (106.7) million. Net income after minority
interests increased at a more pronounced rate, up 44.7% to EUR 94.9 (65.6)
million.
Strongest growth in Original Equipment segment
Benefiting from the rise in global car production by around 4% in 2011 and the
introduction of a number of new products, the Original Equipment segment
recorded revenue growth of 36.3%, taking sales to EUR 827.2 (606.9) million. The
buoyant growth in sales was also fueled by acquisitions transacted in 2011,
whose business activities were almost entirely attributable to the Original
Equipment segment. The Aftermarket segment generated forward momentum mainly
within the international markets, thereby lifting sales revenue by 5.4% to EUR
112.9 (107.1) million.
Financial year dominated by acquisitions and sale of industrial park
In total, first-time inclusion of the metal flat gaskets business acquired from
the Freudenberg Group, the Swiss exhaust treatment specialist Hug Engineering AG
and the Hummel-Formen Group contributed EUR 83.7 million to Group revenue. At
minus EUR 5.0 million, earnings before taxes contributed by the acquired
entities were as yet in negative territory. This figure included EUR 2.2 million
relating to purchase price allocations. The non-recurring negative purchase
price allocation attributable to Hummel in the fourth quarter amounted to EUR
0.5 million.
In August 2011, ElringKlinger AG disposed of its Ludwigsburg industrial park, as
it no longer formed an integral part of the automotive supplier's core business.
The sale resulted in a one-time gain of EUR 22.7 million for the Group, which
was accounted for in other operating income.
Significant R&D costs for new products in core business and E-Mobility
ElringKlinger expended EUR 49.9 (40.6) million on research and development, a
significant increase compared to the previous financial year. Within this
context, the E-Mobility division, newly established in 2010, underwent
considerable expansion. Over the course of the year ElringKlinger secured a
number of additional development contracts from several vehicle and battery
manufacturers for the company's cell contact systems used in lithium-ion
batteries. The first systems for hybrid vehicles went into serial production in
mid-2011.
Whereas general and administrative expenses as well as selling expenses rose at
a slower rate, other operating expenses surged by 107.1% to EUR 11.6 (5.6)
million. Of this total, an amount of EUR 9.1 million alone was attributable to
the fourth quarter.
One-time write-downs in fourth quarter
Driven in particular by significant investments within the Group, depreciation,
amortization and write-downs rose to EUR 96.8 (82.2) million. Additionally,
depreciation and write-downs of property, plant and equipment included a
one-time impairment loss of EUR 1.5 million recognized in the fourth quarter in
respect of merger surpluses. This was attributable to the first-time inclusion
of Elring Klinger GmbH in the consolidated financial statements of the former
parent company ZWL Grundbesitz- und Beteiligungs-AG completed back in the year
1998. Additionally, losses on the disposal of assets and write-downs
attributable to receivables accounted for a total of EUR 4.1 million in the
fourth quarter.
As part of the extension of Management Board contracts finalized in December
2011, pension provisions were adjusted in the fourth quarter. As a result,
general and administrative expenses increased by a one-time amount of EUR 0.8
million. More extensive flexitime accounts as a result of higher capacity
utilization necessitated an increase in provisions in the fourth quarter.
The Group's operating result for the full year rose by EUR 35.1 million year on
year to EUR 151.1 (116.0) million, despite the effects of noticeably higher
commodity prices. This figure included the above-mentioned income from the sale
of the industrial park. Without this item, the operating result would have been
EUR 128.4 million. This figure includes a charge of EUR 2.2 million relating to
the purchase price allocation for the acquisitions.
Adjusted EBIT at EUR 126.0 million
Earnings before interest and taxes (EBIT), which in contrast to the operating
result takes account of foreign exchange gains and losses, were adversely
affected by net foreign exchange losses of EUR 2.4 million in 2011. Thus, EBIT
rose by 39.4% to EUR 148.7 (106.7) million. Adjusted for the one-time gain,
Group EBIT rose by 18.1% to EUR 126.0 million. Adjusted EBIT before purchase
price allocation stood at EUR 128.2 million.
Despite net foreign exchange losses of EUR 2.4 million, net finance costs fell
to EUR 14.5 (22.1) million. As a result, earnings before taxes for the
ElringKlinger Group amounted to EUR 136.6 (94.0) million. Compared to the
previous financial year, this represents an increase of 45.3%. The tax rate rose
to 28.6% (27.0%).
Net income after minority interests grows by 44.7%
Net income rose by 42.3% year on year to EUR 97.6 (68.6) million. As a result of
the purchase of minority interests by ElringKlinger AG in 2011, profit
attributable to non-controlling interests was scaled back. Therefore, net income
after minority interests (i.e. profit attributable to the shareholders of
ElringKlinger AG) increased by a slightly more pronounced rate, rising by 44.7%
to EUR 94.9 (65.6) million. Correspondingly, earnings per share stood at EUR
1.50 (1.11) in 2011; this was based on a figure of 63,359,990 shares
outstanding, which was higher than in the previous year as a result of the
seasoned equity offering of October 2010.
Dividend with special bonus
As a result of the one-time gain from the sale of the Ludwigsburg industrial
park in August 2011, net income for the ElringKlinger Group as a whole was
boosted by an additional EUR 16.5 million in 2011, having accounted for deferred
taxes. Beyond the proposed regular dividend of EUR 0.40 (0.35) per share for the
financial year 2011, shareholders are also to benefit from the aforementioned
one-time gain. This is to be implemented in the form of an additional special
bonus of EUR 0.18 per share. On this basis, the Management Board and the
Supervisory Board will propose to the Annual General Meeting
resolving on the 2011 financial year a total dividend of EUR 0.58 (0.35) per
share, which represents a year-on-year increase of 65.7%. Compared with the
previous year, the total dividend to be distributed will rise by EUR 14.5
million to EUR 36.7 (22.2)million.
Double-digit growth in order intake repeated in fourth quarter
Business for the ElringKlinger Group remains solid in terms of orders in hand.
Order intake rose by 22.8% to EUR 1,089.0 (886.6) million in 2011. At EUR 272.6
(227.3) million, order intake for the fourth quarter of 2011 was again up on the
figure recorded in the buoyant final quarter of 2010. Order backlog for
the ElringKlinger Group totaled EUR 448.4 (333.1) million as at December 31,
2011. This represents an increase of 34.6% on the previous year's figure.
Revenue and EBIT, before one-time effects, to expand further in 2012
The ElringKlinger Group anticipates that global vehicle production will expand
slightly in 2012. Against this backdrop, the Group plans to raise sales revenue
by 5 to 7% in 2012 in terms of organic growth. Within this context, it should be
noted that the level of revenue growth achieved in fiscal 2011 was significantly
higher than originally forecast. An additional revenue contribution of around
EUR 20 million is expected from the consolidation of recently acquired Hug
Engineering AG and Hummel-Formen Group, which for the very first time will be
included in the consolidated group for a full annual period in 2012.
The consolidated entities acquired will see an improvement in their overall
earnings situation in 2012, having as yet contributed negative aggregate
earnings in the 2011 financial year. However, the EBIT margin of the Group's
core business will be diluted to some extent as a result of the as yet weaker
margins recorded by the acquired entities and the purchase price allocations
associated with these acquisitions as well as the lead costs incurred in the
field of battery technology. Despite these effects, ElringKlinger anticipates
that EBIT, adjusted for non-recurring items, will grow faster than sales revenue
in percentage terms. Group EBIT adjusted for non-recurring items is
expected to be in a range of EUR 145 to 150 million (EUR 126.0 million in fiscal
2011) in 2012.
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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company: 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