ElringKlinger with strong organic revenue growth in Q1 2015

DGAP-News: ElringKlinger AG / Key word(s): Quarter Results2015-05-06 / 07:45---------------------------------------------------------------------ElringKlinger with strong organic revenue growth in Q1 2015 Dettingen/Erms (Germany), May 6, 2015   +++ The ElringKlinger Group hasconfirmed its preliminary results for the first quarter of 2015, asannounced on April 29, 2015. The automotive supplier saw its revenue growby 14.6% in the first quarter of 2015, taking the figure to EUR 371.4(324.0) million. Organically, i.e. excluding the effects of acquisitionsand foreign exchange gains, revenue expanded by 5.7%. Thus, theElringKlinger Group yet again managed to outpace the global vehicle marketswhen it came to the rate of growth achieved. Earnings before interest andtaxes (EBIT), and before purchase price allocations, totaled EUR 36.7(43.0) million. Net income after non-controlling interests totaled EUR 29.2(29.3) million.Strong revenue growth sustained in Q1 2015Outperforming the global vehicle markets yet again in the first threemonths of 2015, ElringKlinger recorded organic revenue growth of 5.7%. Thecompany benefited from a number of new product rollouts as well assignificant structural growth in many of the product groups targeted at CO2reduction.The first-time consolidation of former M&W Manufacturing Company, Inc.,Warren/USA, contributed additional revenue of EUR 4.9 million.ElringKlinger had acquired the specialist for transmission components inFebruary 2015. This entity, now trading as ElringKlinger AutomotiveManufacturing, has been included in the scope of consolidation of theElringKlinger Group since February 14, 2015.The direction taken by the euro, particularly relative to the US dollar,Swiss franc and many of the Asian currencies, boosted revenue by EUR 24.1million. Total revenue generated by the ElringKlinger Group rose by 14.6%to EUR 371.4 (324.0) million.EBIT before purchase price allocation totals EUR 37 millionEarnings before interest, taxes, depreciation and amortization (EBITDA)totaled EUR 56.1 (60.8) million in the first quarter of 2015. Depreciationand amortization rose to EUR 20.7 (18.7) million. Group EBIT stood at EUR35.4 (42.1) million. Before purchase price allocations (EUR 1.3 million),EBIT amounted to EUR 36.7 (43.0) million, thus falling short of theprior-year figure. The entity formerly known as M&W contributed EUR 0.6million to Group EBIT.Business in the Original Equipment segment of the ElringKlinger Group wascharacterized by extremely high capacity utilization during the firstquarter of 2015. Individual divisions within this segment recorded adisproportionately large surge in demand. This necessitated theintroduction of extra shifts and additional freight movements, thus pushingthe cost base up by around EUR 4 million. In addition, EBIT was diluted byaround EUR 2.5 million as a result of the sudden appreciation of the Swissfranc against the euro. Additionally, the Group incurred start-up costs inconnection with the commencement of serial production - scheduled for thesecond quarter of 2015 - of pioneering hybrid polymer-metal components.What is more, the comparative base of the Exhaust Gas Purification division(Hug) was very high in the first quarter of the previous financial year,which has to be taken into account in a year-on-year comparison. In thefirst quarter of 2014, Hug - buoyed by billings relating to two majorprojects - had contributed earnings before interest and taxes of EUR 7.6million on the back of revenue of EUR 20.7 million. In the first quarter of2015, by contrast, Hug generated revenue of EUR 12.2 million. Against thisbackground and due to the strength of the Swiss franc, Hug made nocontribution to earnings in the first quarter of 2015.The EBIT margin (before purchase price allocations) thus stood at justunder 10% (13.3%). In addition to being impacted by the factors outlinedabove during the first quarter of 2015, the EBIT margin was diluted by thefull consolidation of ElringKlinger Marusan Corporation, Japan, (around 0.3percentage points) as well as the persistently sluggish performance of theE-Mobility division (around 0.6 percentage points).Foreign exchange gains contribute to net finance incomeThe strong depreciation of the euro against key Group currencies producedforeign exchange gains in connection with financing activities. These netgains amounted to EUR 6.5 (0.1) million. In parallel, net interest coststotaled EUR 3.0 (2.7) million. As a result, the Group recorded net financeincome of EUR 3.5 million in the first quarter of 2015, as opposed to netfinance cost of EUR 2.6 million a year ago.Net income after non-controlling interests at EUR 28 millionTax expenses fell to EUR 9.7 (10.2) million in the first quarter of 2015.Correspondingly, the tax rate fell slightly to 24.9% (25.8%). Thus, at EUR29.2 (29.3) million, net income for the ElringKlinger Group remainedlargely unchanged year on year. Net income attributable to non-controllinginterests fell to EUR 1.0 (1.3) million as a result of the lower earningscontribution made by the Hug Group. As a result, net income afternon-controlling interests rose to EUR 28.2 (27.9) million. On this basis,basic and diluted earnings per share totaled EUR 0.45 (0.44) in the firstquarter of 2015.Encouraging trend in order intakeOrder intake rose significantly in the first quarter of 2015, up by 25.0%to EUR 414.0 (331.2) million. On an organic basis, i.e. excluding theentity formerly known as M&W, order intake increased by 22.9% to EUR 407.1million. Order backlog as of March 31, 2015, thus totaled EUR 730.8 (602.6)million.Outlook 2015ElringKlinger anticipates that global automobile production will expand byaround 2% in 2015. Based on this assumption, the Group is targeting organicrevenue growth of 5 to 7%. Additionally, the first-time consolidation ofElringKlinger Automotive Manufacturing (M&W) will contribute around EUR 30million to Group revenue in the financial year as a whole.Against the backdrop of the Group's business performance in the firstquarter of 2015, ElringKlinger has already initiated measures aimed atoptimizing its earnings situation. The Group expects to achieve improvedearnings in the second half of 2015. Adjusted for non-recurring items, EBITbefore purchase price allocations is expected to reach around EUR 165million in 2015 as a whole. The E-Mobility division is unlikely to see afundamental improvement in its performance.The full report on the first quarter of 2015 can be accessed athttp://www.elringklinger.de/investor/2015-Q1-en.pdf__________________________________________________________________________For further information, please contact:ElringKlinger AG Sabrina HauflerCorporate Communications / Investor RelationsMax-Eyth-Straße 272581 DettingenTel.: +49 (0)7123-724-137Fax: +49 (0)7123-724-85 137E-mail: sabrina.haufler@elringklinger.com---------------------------------------------------------------------2015-05-06 Dissemination of a Corporate News, transmitted by DGAP - aservice 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:      sabrina.haufler@elringklinger.com                           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  ---------------------------------------------------------------------  353475 2015-05-06