ElringKlinger AG / Key word(s): Final Results ElringKlinger looking to maintain strong organic growth in sales after record performance in 2014 Dettingen/Erms (Germany), March 31, 2015 +++ The ElringKlinger Group saw its sales revenue expand by 15.3% to EUR 1,325.8 (1,150.1) million in 2014. Expressed in organic terms, growth amounted to 11.2%, thus substantially outpacing the rate of expansion in global vehicle production as well as the Group's own growth target of 5 to 7%. Despite downside factors associated with ElringKlinger's E-Mobility division and sluggish business in Brazil as a result of local market forces, adjusted EBIT before purchase price allocation rose by 8.3% to EUR 162.3 (149.8) million. Net income after non-controlling interests, adjusted for the one-time gain recorded in the previous year from the assumption of control over ElringKlinger Marusan Corporation, Japan, improved by 14.0% to EUR 105.7 (92.7) million. Strong structural growth in revenue Further improvement in adjusted EBIT before purchase price allocation despite unfavorable performance in E-Mobility division Group EBIT, adjusted for non-recurring items and before purchase price allocation, stood at EUR 162.3 (149.8) million, up 8.3% on the previous year; this corresponds to a margin of 12.2% (13.0%). This increase in earnings was attributable largely to significant structural revenue growth within the Group's core field of business as well as new serial production ramp-ups and improved earnings in the area of exhaust gas purification. Due to current demand patterns, the new E-Mobility division, by contrast, fell well short of the original target and recorded a loss of EUR 8.0 (-7.2) million before interest and taxes. The Brazilian subsidiary remained around EUR 4.0 million below the original earnings target in 2014 as a result of the severe downturn in the local market. In total, non-recurring exceptional charges amounted to EUR 4.9 million in 2014, which had a dampening effect on earnings. These expenses were attributable in full to the fourth quarter. First, the subsidiary ElringKlinger Korea Co., Ltd. had to account for inventory corrections and impairments of EUR 2.0 million as part of the plant relocation to the newly constructed site in Gumi. Secondly, a warranty incident attributable to the parent company, ElringKlinger AG, and dating back to 2008 was definitively settled in the reporting period. There are no longer any risks associated with this matter. In this context, however, a sum of EUR 1.5 million in receivables had to be derecognized, which was accounted for in profit/loss. At the same time, ElringKlinger received cash of EUR 8.5 million as a result of the insurance payment. Thirdly, as part of the complete revision of Management Board contracts of service, a one-time amount of EUR 1.4 million had to be allocated to provisions in respect of long-term variable incentive components of compensation (LTI II) that are attributable in economic terms to the two previous years. As a result of the substantial investments made in the Group's future growth (2014: EUR 147.0 million in ppe), depreciation and amortization rose by EUR 5.0 million to EUR 79.4 (74.4) million. The purchase price allocations contained in write-downs with regard to hidden reserves realized increased to EUR 3.4 (1.3) million. Compared to the prior-year figure, adjusted for the one-time gain from the assumption of control of Marusan, earnings before taxes rose by 16.6% to EUR 153.1 million (EUR 131.3 million, including one-time gain: EUR 148.9 million). This was driven largely by lower net finance costs of EUR 0.9 (15.3) million, which included foreign exchange gains of EUR 10.0 (-4.4) million. The foreign exchange gains were attributable primarily to the sustained depreciation of the euro over the course of 2014, particularly against the US dollar and Asian currencies. Net interest costs remained largely unchanged at EUR 10.9 (11.2) million. Adjusted net income after non-controlling interests up by 14% Order intake up by 10% Further revenue and earnings growth planned for 2015 _____________________________________________________________________________ 2015-03-31 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. 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: | 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: | Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich | |
End of News | DGAP News-Service |
339105 2015-03-31 |