DGAP-News: ElringKlinger AG / Key word(s): Quarter Results08.05.2014 / 07:39---------------------------------------------------------------------Dettingen/Erms, May 8, 2014 +++ Despite the adverse effects of foreigncurrency translation, the ElringKlinger Group managed to expand Grouprevenue by 15.3% to EUR 324.0 (281.0) million in the first quarter of 2014.Earnings before interest and taxes (EBIT = operating result) rose by 28.4%to EUR 42.1 (32.8) million. Net income after non-controlling interestsstood at EUR 27.9 (23.8) million.In the first three months of 2014 the ElringKlinger Group once againoutperformed the global car markets in terms of revenue growth. An upturnin the number of new vehicle registrations in Western Europe as well asconsistently solid demand from Asia and North America in conjunction withthe introduction of new products resulted in organic revenue growth - i.e.without scope changes and foreign exchange effects - of 13.4%.Due to the necessary retrospective application of IFRS 11 as regards thepresentation of comparative prior-year figures, the joint ventureElringKlinger Marusan Corporation, Tokyo, Japan, was no longer accountedfor on a proportionate basis but rather in accordance with the equitymethod. As a result, the Group revenue figure originally presented for thefirst quarter of 2013 was reduced to EUR 281.0 million, the differencebeing attributable to this subsidiary's revenue contribution (EUR 5.8million) formerly included at a proportionate rate of 50%. In the firstquarter of 2014, by contrast, the entity was fully consolidated as a resultof the assumption of control effective from December 31, 2013, and wasaccounted for with its total revenue of EUR 11.9 million. The additionalrevenue contribution in the first quarter of 2014 thus stood at EUR 6.0million. When determining organic revenue growth, the joint venture wasaccounted for as if the entity had remained subject to proportionateconsolidation, as was originally the case.The strength of the euro had a dilutive effect on Group revenue in thefirst quarter of 2014 given the fact that ElringKlinger generates around40% of its sales revenue outside the eurozone. The negative effect onconsolidated sales of translating revenues into the Group currency - euro -was equivalent to EUR 8.6 million.EBIT rises to EUR 42.1 million - Marked improvement in earnings for ExhaustGas Purification divisionEarnings before interest, taxes, depreciation and amortization (EBITDA)increased to EUR 60.8 (51.0) million. Depreciation and amortization rose toEUR 18.7 (18.2) million in the first quarter of 2014. This included anegative earnings effect of EUR 0.9 million in total relating to thepurchase price allocation for Hug Engineering AG, Switzerland, (EUR 0.3million) and ElringKlinger Marusan Corporation (EUR 0.6 million).Despite the as yet negative earnings contribution made by the E-Mobilitydivision (minus EUR 2.2 million), earnings before interest and taxes (EBIT)rose to EUR 42.1 (32.8) million in the first quarter of 2014. The staffprofit-sharing bonus of EUR 1,450 (1,300) per employee for the workforce ofElringKlinger AG, ElringKlinger Kunststofftechnik GmbH and Elring KlingerMotortechnik GmbH, as agreed for the financial year 2013, was accounted forin other liabilities and resulted in additional staff costs of EUR 4.7(3.7) million in the first quarter of 2014. In spite of this, EBIT rose by28.4%, i.e. at a more pronounced rate than sales revenue. In addition tobenefiting from revenue growth in all areas of the Original Equipmentsegment, EBIT was fueled in particular by the improvement in earningscontributed by the Exhaust Gas Purification division. Consistently strongdemand in its US retrofitting business for heavy trucks as well as newprojects for inland waterway vessels and business centered around exhaustgas purification systems for natural gas power plants prompted growth inrevenue contributed by the Hug Group in the first three months of 2014,taking the figure to EUR 20.7 (11.0) million. At the same time, EBIT forthe Hug Group rose to EUR 7.7 (1.1) million. By contrast, earningscontributed by ElringKlinger Meillor SAS, France, which are now in positiveterritory but still well below the Group average, had a dilutive effect onthe Group's margin equivalent to around 0.2 percentage points.Additionally, full consolidation of ElringKlinger Marusan Corporationdiluted the Group's EBIT margin by around 0.3 percentage points.Eliminating the effects of purchase price allocation, EBIT in the firstquarter of 2014 stood at EUR 43.0 million, while the corresponding EBITmargin was 13.3%.For the purpose of improved comparability, as from January 1, 2014,ElringKlinger no longer includes foreign exchange effects, which are mainlyattributable to financing activities, in the financial indicator EBIT.Thus, as is standard, EBIT corresponds to the company's operating resultreported in the income statement. Applying the former method ofcalculation, EBIT - which in contrast to the operating result includedforeign exchange gains and losses from financing activities - would haveamounted to EUR 42.2 (35.8) million in the first quarter of 2014.Net finance costs up due to foreign exchange effectsNet finance costs rose by EUR 2.8 million to minus EUR 2.6 (plus 0.2)million. The figure previously reported for the first quarter of 2013 hadbeen minus EUR 0.3 million. The difference in the figure reported now isattributable to income contributed by ElringKlinger Marusan Corporation,which until December 31, 2013, had been accounted for on the basis ofproportionate consolidation and, under the provisions of IFRS 11, has nowbeen consolidated retrospectively using the equity method. The year-on-yearincrease in net finance costs was mainly due to the foreign exchange gainsof EUR 2.5 (Q1 2014: 0.1) million recorded in the first quarter of 2013.Net income after non-controlling interests up by 18% Earnings before taxes rose by EUR 6.5 million, reaching EUR 39.5 (33.0)million. Due to the increase in earnings before taxes, the Group was alsofaced with higher tax expenses in the first quarter of 2014. The latteramounted to EUR 10.2 (8.4) million. The Group's tax rate increased slightlyto 25.8% (25.5%). The ElringKlinger Group managed to exceed net income forthe first quarter of the previous year by 19.1%. Net income for the firstthree months of 2014 thus stood at EUR 29.3 (24.6) million. Net incomeattributable to non-controlling interests rose to EUR 1.3 (0.8) million,primarily as a result of the significant improvement in earningscontributed by the Hug Group. Therefore, net income attributable to theshareholders of ElringKlinger AG stood at EUR 27.9 (23.8) million, anincrease of 17.6%. On this basis, basic and diluted earnings per sharetotaled EUR 0.44 (0.37) in the first quarter of 2014.Order intake remains positive - Order backlog at record levelOrder intake in the first quarter of 2014 edged up by 0.6% to EUR 331.2million, starting from a high prior-year base of EUR 329.2 million. TheElringKlinger Group is supported by a solid order backlog when it comes toachieving sales growth targeted for 2014. As of March 31, 2014, orderbacklog stood at EUR 602.6 (499.1) million in total. This corresponds to ayear-on-year increase of 20.7%.Forecast for the full year confirmed - Further growth in revenue andearnings in 2014The company has confirmed its forecast for the annual period as a whole.For 2014, ElringKlinger anticipates that production output in the globalcar market will expand by 2 to 3%. Against this backdrop, the ElringKlingerGroup has forecast that - on the back of revenue totaling EUR 1,175.2million in the 2013 financial year (ElringKlinger Marusan Corporation wasincluded in this figure on a proportionate basis) - its revenue will growby 5 to 7% organically in 2014, thus outpacing the market as a whole interms of percentage growth. The full consolidation of ElringKlinger MarusanCorporation, Japan, will additionally contribute around EUR 25 million toGroup revenue. Full inclusion of this lower-margin subsidiary within thescope of consolidation will have a slightly dilutive effect on the EBITmargin of the ElringKlinger Group in 2014 (approx. minus 0.3 percentagepoints). At the same time, the introduction of Euro VI is likely to lead tohigher capacity utilization in the truck category over the course of theyear. Additionally, revenue streams attributable to battery technology areexpected to expand and the level of organic growth projected for Grouprevenue will be accompanied by earnings contributions. In total, thesefactors will provide a slight improvement to the Group's EBIT margin.Adjusted for non-recurring items, EBIT is to rise to a level of EUR 160 to165 million.__________________________________________________________________________Contact:For further information, please contact:ElringKlinger AG - Investor Relations/Corporate PRStephan HaasMax-Eyth-Straße 272581 Dettingen/ErmsTel.: +49 (0)7123-724-137E-Mail: stephan.haas@elringklinger.com End of Corporate News---------------------------------------------------------------------08.05.2014 Dissemination of a Corporate News, transmitted by DGAP - acompany of EQS Group AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------Language: English Company: ElringKlinger AG Max-Eyth-Straße 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 News DGAP News-Service --------------------------------------------------------------------- 267138 08.05.2014
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