ElringKlinger remains on growth trajectory in first quarter of 2016

ElringKlinger remains on growth trajectory in first quarter of 2016

- Revenue up 3.7% to EUR 385 million; organic revenue growth of 5.5%

- Adjusted EBIT before purchase price allocation totals EUR 32.0 million

- This figure includes trailing costs of EUR 7 million in the Original Equipment segment as well as provisions of EUR 2.6 million for a Management Board member who left the company

- Guidance for current financial year confirmed

Dettingen/Erms (Germany), May 4, 2016 +++ The ElringKlinger Group made a solid start to the new financial year. Group revenue increased by 3.7% or EUR 13.8 million in total in the first quarter of 2016, taking the figure to EUR 385.2 (371.4) million, despite the fact that currency translation had a dilutive effect of EUR 11.7 million or 3.2% on the figures for the reporting period. This was mainly attributable to the Mexican peso, Brazilian real, and Swiss franc. As another influencing factor, ElringKlinger Automotive Manufacturing, Inc. (formerly: M&W), an entity acquired in 2015, was fully consolidated for the first time in mid-Q1 2015. Therefore, its revenue in the first approximately six weeks of 2016, amounting to EUR 4.9 million, represents acquisition-induced growth. Taking into account the aforementioned factors relating to foreign exchange rates and the corporate acquisition, revenue showed organic growth of EUR 20.6 million or 5.5%.

At EUR 32.0 million, adjusted Group EBIT before purchase price allocation was down EUR 4.7 million on the prior-year quarter. This was due partly to exceptional charges within the Original Equipment segment. At EUR 7 million, they were higher than in the same quarter a year ago (EUR 4 million). However, the Group had been expecting a figure of up to EUR 10 million in the first quarter of 2016. Additionally, the resignation of Management Board member Karl Schmauder on February 23, 2016, produced an expense item in the form of a provision of EUR 2.6 million; this covers compensation outstanding up to the end of the contract in January 2018. The Group had net finance costs of EUR 6.3 million in the first quarter of 2016, a negative swing of EUR 9.8 million. This year-on-year change was also due to FX effects. In total, earnings per share were down EUR 0.18 to EUR 0.27.

The Group's other key performance indicators also developed in line with expectations. Operating free cash flow improved by EUR 11.8 million. At EUR 0.6 (-11.2) million, it was just within positive territory. At EUR 37.5 (35.2) million, investments in property, plant, and equipment were slightly higher than in the previous year. Net working capital was comparable to the prior-year figure at EUR 529.1 million, a year-on-year change of EUR 6.3 million or 1.2%. The Group's situation in terms of orders received was also encouraging. Despite the adverse effects of foreign exchange rates equivalent to EUR 28.1 million, incoming orders were up EUR 10.0 million or 2.4% on the figure for the same period a year ago. As a result, order intake amounted to EUR 424.0 million.

"We remain well on track and are implementing our agenda step by step with a view to returning the Group to greater profitability," says Dr. Stefan Wolf, CEO of ElringKlinger AG. "We took a determined approach to addressing the issue of capacity and logistical constraints. In pressing ahead with improvements at the site in question and establishing a new production facility in Hungary, we took the opportunity to energize the entire division and put it on a firm footing for a bright future."

ElringKlinger continues to anticipate moderate growth of around 2% within the global automobile market in the current financial year. Against this backdrop, the Group has confirmed its guidance of organic revenue growth of between 5% and 7% in 2016, while adjusted EBIT before purchase price allocation is expected to lie between EUR 160 and 170 million.

EUR million	Q1 2016	Q1 2015	Dif. abs.	Dif. rel.
Order intake	424.0	414.0	+ 10.0	+ 2.4%
Order backlog	835.0	730.8	+ 104.2	+ 14.3%
Revenue	385.2	371.4	+ 13.8	+ 3.7%
of which FX effects			- 11.7	- 3.2%
of which acquisitions			+ 4.9	+ 1.3%
of which organic			+ 20.6	+ 5.5%
Adjusted EBIT before purchase price allocation	32.0	36.7	- 4.7	- 12.8%
Adjusted EBIT margin before purchase price allocation (in %)	8.3	9.9	- 1.6 PP	-
Purchase price allocation	1.2	1.3	- 0.1	- 7.7%
EBIT	30.8	35.4	- 4.6	- 13.0%
Net finance cost/income	- 6.3	3.5	- 9.8	> - 100%
EBT	24.4	38.9	- 14.5	- 37.3%
Taxes on income	- 6.5	- 9.7	- 3.2	- 33.0%
Effective tax rate (in %)	26.6	24.9	- 1.7 PP	-
Net income (after non- controlling interests)	17.2	28.2	- 11.0	- 39.0%
Earnings per share (in EUR)	0.27	0.45	- 0.18	- 40.0 %
Investments (in property, plant, and equipment)	37.5	35.2	+ 2.3	+ 6.5%
Operating free cash flow	0.6	- 11.2	+ 11.8	> + 100%
Net working capital	529.1	522.8	+ 6.3	+ 1.2%
Equity ratio (in %)	47.8	48.9	- 1.1 PP	-
Net financial liabilities	481.9	396.2	+ 85.7	+ 21.6%
Employees (as of March 31)	8,126	7,492	+ 634	+ 8.5%

 

The full quarterly report can be accessed from the ElringKlinger website at http://www.elringklinger.de/investor/2016-Q1-en.pdf

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone +49 7123 724-88335
Fax +49 7123 724-85 8335
E-mail jens.winter[at]elringklinger.com

About ElringKlinger AG
ElringKlinger has focused its efforts on developing forward-looking green technologies. These are designed not only to reduce CO₂ emissions but also to scale back the level of harmful nitrogen oxides, hydrocarbons and soot particles. ElringKlinger is one of the few automotive suppliers worldwide with the capabilities of developing and producing high-tech components for all types of drive system - whether for downsized combustion engines or for electric vehicles driven by batteries or fuel cells. Drawing on our expertise in lightweight engineering, we can make a decisive contribution to efforts aimed at further reducing vehicle weight and thus fuel consumption. The company's portfolio centered around emissions reduction also includes particulate filters and end-to-end exhaust gas purification systems used in ships, commercial vehicles, construction machinery and stationary engines as well as in power stations. This is complemented by products made of the high-performance plastic PTFE supplied by ElringKlinger Kunststofftechnik, which are marketed to a wide range of industries - also to those operating beyond the vehicle manufacturing sector. Applying our abilities as an innovator, we are committed to sustainable mobility and earnings-driven growth. These efforts are supported by our dedicated workforce of more than 8,000 people at 45 ElringKlinger Group locations around the globe.