EANS-Adhoc: ElringKlinger sales up 6% in Q3 2012 - Slight contraction in
adjusted EBIT
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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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07.11.2012
Dettingen/Erms, November 7, 2012 +++ Despite the severe
weakness afflicting car markets throughout Western Europe, the
ElringKlinger Group managed to drive sales forward by 11.3% to
EUR 849.6 (763.2) million in the first nine months of 2012. In
the third quarter of 2012, sales revenue grew by 5.8%, reaching
EUR 279.8 (264.4) million overall. The Group's year-on-year
earnings performance was affected by the high comparative base
in 2011. In the third quarter of 2011, ElringKlinger had sold
its Ludwigsburg industrial park, posting a one-time gain on
disposal of EUR 22.7 million before taxes. As a result, EBIT
contracted by 8.3% year on year in the first nine months of
2012, taking the figure to EUR 111.6 (121.7) million. In the
third quarter of 2012, EBIT amounted to EUR 36.0 (60.2) million,
a slight reduction of 4.0% when eliminating the non-recurring
gain on disposal attributable to the same quarter a year ago.
Consolidation of acquired entities contributes to revenue
Forward momentum generated by the ElringKlinger Group throughout
the emerging markets and in the United States, coupled with
numerous product ramp-ups, proved sufficient when it came to
offsetting the effects of anemic demand for new vehicles in
Western Europe. The first-time inclusion of the acquired Hug
Group, the Hummel-Formen Group as well as former Hug supplier
ThaWa in the scope of consolidation of the ElringKlinger Group
contributed a total of EUR 18.6 million (EUR 1.7 million in Q3)
to Group sales in the first nine months of 2012. These entities
had not been included in the scope of consolidation in the nine-
month period of 2011 or had only been consolidated on a pro-rata
basis. Overall, their contribution to earnings before taxes was
in negative territory, at minus EUR 3.4 million (EUR -0.5
million in Q3), primarily due to the earnings performance of the
Swiss Hug Group. In the third quarter, the Group recorded
organic revenue growth of 5.2%, adjusted for the contributions
from first-time consolidation of the acquired entities.
In the first nine months, Hug made a negative contribution of
minus EUR 3.6 million (EUR -0.7 million in Q3) to Group earnings
before taxes, despite a gradual upturn in its performance. By
contrast, the earnings situation of the former Freudenberg
companies, which were acquired effective from January 1, 2011,
and were thus included in the scope of consolidation in the
first nine months of 2011, showed signs of improvement. Having
incurred a significant loss in 2011, they contributed EUR 38.5
million to Group sales (EUR 11.5 million in Q3) and EUR 1.0
million (EUR 0.5 million in Q3) to earnings before taxes in the
first nine months of 2012 - despite the severe downturn in
demand within the French car market.
Slight dip in adjusted EBIT during third quarter
The marked increase in staff costs, particularly within the
domestic market, and the surge in raw material prices during the
third quarter with regard to key commodity groups such as
polymer granules were largely offset by ongoing measures aimed
at raising efficiency levels throughout the Group. At +8.9%, the
cost of sales incurred in the first nine months of 2012 as a
whole increased at a slower rate than sales revenue. The third
quarter also saw the cost of sales expand at a less pronounced
rate, +3.8%, than sales revenue. Thus, the gross profit margin
improved year on year, rising to 28.8% (27.5%).
In the first nine months of the current financial year,
ElringKlinger expanded its investments in research and
development by EUR 7.7 million. In total, R&D expenditure rose
to EUR 44.7 (37.0) million. Correspondingly, the R&D ratio
increased to 5.3% (4.8%). Alongside a multitude of new products
in the Group's core line of business, investments were mainly
directed at the E-Mobility division. The company has recently
been able to secure two further serial-production contracts for
the manufacture of cell contact systems to be used in a hybrid
vehicle developed by a German car maker and in a pure electric
car produced by another European auto company. The overall
volume of these contracts stands at EUR 9 million. With outlays
directed at battery technology, this area generated revenue of
EUR 5.2 million in the first nine months of 2012.
The operating result declined by 8.8% to EUR 113.1 (124.0)
million in the first nine months. Of this total, an amount of
EUR 36.5 (58.0) million was attributable to the third quarter.
In contrast, adjusted for the above-mentioned non-recurring gain
in the same quarter a year ago, the Group's operating result for
the third quarter of 2012 rose by 3.4%. The contribution made by
the aforementioned acquisitions, including the former
Freudenberg companies, diluted the Group's operating result by
minus EUR 2.2 million in the first nine months of 2012 and by
minus EUR 0.4 million in the third quarter. In this context, the
purchase price allocations gave rise to a negative effect in the
first nine months of 2012 that was equivalent to minus EUR 1.8
million (EUR -0.6 million in Q3).
Earnings before interest and taxes (EBIT) - in contrast to the
operating result, this indicator includes foreign exchange gains
and losses - fell by 8.3% to EUR 111.6 (121.7) million in the
first nine months of 2012. Excluding the one-time gain from the
sale of the industrial park in the previous year, the Group
managed to expand EBIT by 12.7%. Foreign-exchange losses of EUR
0.5 million exerted downward pressure in the third quarter of
2012. Against this backdrop, EBIT stood at EUR 36.0 (60.2)
million. Eliminating the one-time gain attributable to the third
quarter of the preceding year, EBIT contracted by 4.0% in Q3
2012. The EBIT margin for the third quarter was 12.9%. Excluding
the dilution of earnings attributable to the acquisition of the
Hug Group, the Hummel-Formen Group and ThaWa GmbH - the latter
has 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 14.6% in its core business over the nine-month
period.
In the first nine months of 2012, net finance costs were scaled
back from EUR 11.6 million to EUR 10.8 million. At EUR 3.6 (0.8)
million, net finance costs attributable to the third quarter
were higher than in the previous year. This was attributable
largely to foreign exchange effects.
The ElringKlinger Group saw its earnings before taxes decline by
9.0% to EUR 102.2 (112.3) million in the first nine months.
Excluding the effects of the non-recurring gain from the sale of
the industrial park a year ago, the Group managed to raise its
earnings before taxes by 14.1%. Adjusted for the aforementioned
one-time gain, earnings before taxes posted in the third quarter
were down 4.3% to EUR 33.0 (34.5) million. At 26.6% (26.1%), the
Group's tax rate for the first nine months remained largely
unchanged year on year.
On this basis, the ElringKlinger Group recorded net income after
minority interests of EUR 72.7 (80.6) million in this period. In
the third quarter, net income after minority interests fell by
43.3% to EUR 23.3 (41.1) million. Excluding the one-time gain of
EUR 16.5 million after taxes recorded in the same quarter a year
ago, ElringKlinger saw net income after minority interests
contract by just 5.3% in the third quarter.
Earnings per share amounted to EUR 1.15 (1.27) in the first nine
months of 2012. In the third quarter earnings per share stood at
EUR 0.37 (0.65).
Slight increase in order intake during third quarter
Order intake rose by 3.8% to EUR 267.5 (257.8) million in the
third quarter of 2012. As at September 30, 2012, order backlog
within the ElringKlinger Group as a whole thus stood at a solid
EUR 472.8 (440.9) million, up 7.2% on the previous year's
figure.
Growth in sales and EBIT, before one-time effects, also targeted
for full fiscal year
At present, a further downturn within the automotive markets,
particularly in Europe, cannot be ruled out. Overall,
ElringKlinger is working on the assumption that global vehicle
production will expand at a moderate rate in 2012 as a whole.
Against this backdrop, the Group still anticipates that it will
be able to raise sales revenue by 5 to 7% in 2012 on an organic
basis - depending upon how customer demand develops over the
course of the fourth quarter. An additional revenue contribution
of approximately EUR 20 million is expected from the
consolidation of acquired Hug Engineering AG, the Hummel-Formen
Group and former ThaWa GmbH, which in 2012 will be included in
the scope of consolidation for a full annual financial period
for the first time. In 2011, the Hug Group had been included in
the scope of consolidation of the ElringKlinger Group on a pro-
rata basis as from May 1, while the Hummel-Formen Group had been
included on a pro-rata basis as from October 1.
The EBIT margin of the Group's core business in 2012 will be
adversely affected to some extent by the much weaker margins
recorded by the acquired entities, the purchase price
allocations associated with these acquisitions and the
substantial outlays attributable to the E-Mobility division.
Despite these effects, ElringKlinger still anticipates that
earnings before interest and taxes, adjusted for non-recurring
items, will expand at a faster rate than sales revenue. 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 the annual period as a whole.
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