ElringKlinger AG: Preliminary annual result for 2014: ElringKlinger records organic revenue growth of 11.2%

ElringKlinger AG  / Key word(s): Preliminary Results02.03.2015 07:39Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.----------------------------------------------------------------------------   Revenue increases by 15.3% - organically by 11.2% - to EUR 1,325.8    million-   Adjusted EBIT before purchase price allocation (EUR 3.4 million) at    EUR 162.3 million-   Outlook for 2015: organic revenue growth of 5 to 7% plus acquisitions;    EBIT before purchase price allocation projected at between     EUR 170 and 180 millionDettingen/ Erms (Germany), March 2, 2015   +++  Based on preliminary data,the ElringKlinger Group recorded sales revenue of EUR 1,325.8 (1,150.1)million in the 2014 financial year. Organically, i.e. eliminating theeffects of foreign currency translation and changes in the scope ofconsolidation, sales revenue increased by 11.2%, despite the malaiseafflicting vehicle markets in both Brazil and Russia. ElringKlingerbenefited from strong structural growth in many of its product groups aimedat CO2 reduction and expanded at a percentage rate that was well in excessof growth in terms of global vehicle production. The full consolidation ofElringKlinger Marusan Corporation contributed EUR 23.1 million to Grouprevenue in 2014.*It should be noted that ElringKlinger had generated a one-time gain of EUR17.6 million in 2013 following the assumption of control of the 50:50 jointventure ElringKlinger Marusan Corporation effective from December 31, 2013.The operating result rose to EUR 154.0 million in 2014. Adjusted for theone-time gain of EUR 17.6 million from the assumption of control ofMarusan, the comparative prior-year figure was EUR 146.6 million (includingone-time gain: EUR 164.2 million).Group EBIT, adjusted for non-recurring items and before purchase priceallocation, stood at EUR 162.3 (149.8) million, up 8.3% on the previousyear; this corresponds to a margin of 12.2%. Due to current demandpatterns, the new E-Mobility division fell well short of the originaltarget and recorded a loss of EUR 8.1 (loss of 7.3) million. In total,one-off exceptional charges of EUR 4.9 million had a dampening effect: aspart of the plant relocation to the newly constructed site in Gumi, thesubsidiary ElringKlinger Korea Co., Ltd. had to carry out inventorycorrections and adjustments of EUR 2.0 million. A warranty incidentattributable to the parent company, ElringKlinger AG, and dating back to2008 was definitively settled in the reporting period and there are nolonger any risks associated with this matter. In this context, a sum of EUR1.5 million in receivables had to be derecognized, which was accounted forin profit/loss. At the same time, ElringKlinger received cash of EUR 8.5million as a result of the insurance payment. As part of the amendments toManagement Board contracts of service, a one-time amount of EUR 1.4 millionhad to be allocated to provisions in respect of long-term variableincentive components of compensation (LTI II) that are attributable ineconomic terms to the two previous years.Compared to the prior-year figure, adjusted for the one-time gain from theassumption of control of Marusan, earnings before taxes rose by 16.6% toEUR 153.1 million (EUR 131.3 million, including one-time gain: EUR 148.9million). This was driven largely - primarily as a result of foreignexchange gains - by lower net finance costs of EUR 0.9 (15.3) million.Order backlog 15.6% up on previous yearElringKlinger saw its order intake expand by 10.5%, or 8.3% organically, in2014. In absolute terms, order intake rose to EUR 1,418.6 (1,284.4)million, which was well in excess of sales revenue. As of December 31,2014, order backlog exceeded the previous year's figure by 15.6%, taking itto EUR 688.2 (595.4) million.Further revenue and earnings growth planned for 2015ElringKlinger anticipates that global car production will expand by around2% in 2015 as a whole. Based on this assumption, the Group is targetingorganic revenue growth of 5 to 7%. Additionally, the consolidation ofrecently acquired M&W Manufacturing Inc., USA (in future "ElringKlingerAutomotive Manufacturing Inc.") will contribute around EUR 30 million toGroup revenue in the financial year as a whole.Due to the greater relevance of acquired entities, adjusted EBIT will infuture be presented before the effects of purchase price allocation.Adjusted for non-recurring items, EBIT before purchase price allocation isexpected to be between EUR 170 and 180 million in 2015. Due to currentdemand patterns, from today's perspective, the E-Mobility division is notlikely to see a fundamental improvement in its earnings performance in2015.________________________________________________________________________With regard to the publication of preliminaries for fiscal 2014 aconference call will be held today, March 2, 2015, at 10:00 CET. The fullannouncement of the definitive, audited results for fiscal 2014 isscheduled for March 31, 2015.*Due to the necessary retrospective application of IFRS 11 as regards thepresentation of comparative prior-year figures (2013), the joint ventureElringKlinger Marusan Corporation was no longer accounted for on aproportionate basis but rather in accordance with the equity method. As aresult, the Group revenue figure originally presented for 2013 wasretrospectively reduced to EUR 1,150.1 million, the difference beingattributable to the entity's revenue contribution (EUR 25.1 million)formerly included at a proportionate rate of 50%. Thus, EBIT presented herewas EUR 0.7 million lower retrospectively, while earnings before taxes wereEUR 0.3 million lower retrospectively. In the fourth quarter of 2013, Grouprevenue was thus reduced retrospectively by EUR 5.7 million to EUR 285.4million.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 02.03.2015 The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      ElringKlinger AG              Max-Eyth-Straße 2              72581 Dettingen/Erms              GermanyPhone:        071 23 / 724-0Fax:          071 23 / 724-9006E-mail:       stephan.haas@elringklinger.deInternet:     www.elringklinger.deISIN:         DE0007856023WKN:          785602Indices:      MDAXListed:       Regulated Market in Frankfurt (Prime Standard), Stuttgart;              Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,              Hanover, Munich End of Announcement                             DGAP News-Service ---------------------------------------------------------------------------