ElringKlinger AG / Key word(s): Final Results28.03.2014 07:30Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------After record performance in 2013, ElringKlinger anticipates further growthin revenue and earnings: major order for new lightweight componentsDettingen/Erms (Germany), March 28, 2014 +++ Despite difficult marketconditions and unfavorable foreign exchange effects, the ElringKlingerGroup set a new record in revenue and earnings in the financial year 2013.Sales rose by 4.3% to EUR 1,175.2 (1,127.2) million. At an organic level,growth stood at 6.0%, which was almost twice as much as the expansion inglobal vehicle production. Earnings before interest and taxes (EBIT)reached EUR 160.4 (135.8) million. Adjusted for one-time effects, EBIT roseby 6.6% to EUR 144.7 million and included foreign exchange losses of EUR4.6 million. Net income after non-controlling interests amounted to EUR105.4 (85.7) million.Despite the protracted weakness of the European vehicle markets, thenoticeable downturn in car sales in the BRIC states of Brazil, Russia andIndia as well as the negative effects of foreign currency translationequivalent to EUR 24.7 million, the ElringKlinger Group managed to propelits sales revenue to a new annual record in 2013. Growth was fueled by afavorable performance in Asia, significant export-driven demand and anumber of new product rollouts within the Original Equipment segment.Control obtained over Marusan joint venture as part of expansion in AsiaThe assumption of control over the 50:50 Japanese joint ventureElringKlinger Marusan Corporation effective from December 31, 2013,produced a one-off gain of EUR 17.6 million (EUR 12.7 million after taxes)for the ElringKlinger Group. By contrast, there was as yet no revenueeffect in 2013. Having previously been included in the Group's scope ofconsolidation at a proportionate rate of 50%, the joint venture was fullyconsolidated as from December 31, 2013. As a result, Group sales revenuewill increase by around EUR 25 million in 2014 compared to the precedingfinancial year, while proportionate earnings before taxes will expand byapprox. EUR 1.5 million year on year. Amortization of intangible assetsresulting from purchase price allocation and amounting to an estimatedfigure of EUR 2.2 million will have a contrary effect in 2014.Improved earnings performance of acquired companies: successful turnaroundat HugThe companies acquired in 2011 - the Swiss Hug Group and the formerFreudenberg enterprises - saw an improvement in their earnings performancein 2013. Exhaust abatement specialist Hug, in particular, has beenbenefiting from extremely buoyant demand for exhaust gas purificationsystems within the US retrofit market for heavy trucks as well as withinthe area of inland shipping. As a result, sales surged to EUR 57.6 (36.6)million. Having been faced with a loss before taxes of EUR 3.5 million inthe preceding year, Hug generated earnings before taxes of EUR 12.9 millionin 2013. The former Freudenberg enterprises in total also made a largerearnings contribution. Whereas the German and Italian sites achievedearnings that were well within positive territory, the French subsidiarywas again under par with a loss of EUR 2.5 million due to restructuringmeasures.Adjusted operating result up 8% - EBIT impacted by foreign exchange lossesThe ElringKlinger Group's operating result rose by 19.0% to EUR 164.9(138.6) million in 2013. This included non-recurring restructuring expensesfor the French site in Nantiat (EUR 1.8 million) and one-time expenses inrelation to market penetration measures in the aftermarket business (EUR1.5 million). By contrast, non-recurring income from the step acquisitionof the Korean joint venture ElringKlinger Korea Co., Ltd. (EUR 1.4 million)and, as detailed above, income from the assumption of control ofElringKlinger Marusan Corporation (EUR 17.6 million) had a positive impact.The adjusted operating result increased by 7.6% to EUR 149.2 (138.6)million, while the adjusted operating margin was up at 12.7% (12.3%). Inthis context, the operating result was burdened by considerable up-frontcosts still associated with the E-Mobility division and poor capacityutilization at the new plant in Dettingen, Germany, which was built inparticular for plastic housing modules used in the truck industry. Thenegative contribution made by the French subsidiary also had an adverseeffect.Adjusted EBIT rises to EUR 144.7 million Earnings before interest and taxes (EBIT) includes the effects ofsubstantial foreign exchange losses of EUR 4.6 (2.9) million, which wereattributable primarily to the appreciation of the euro against theBrazilian real and a number of Asian currencies. As a result, EBIT laggedbehind the operating result at EUR 160.4 (135.8) million. Adjusted EBITbefore non-recurring items stood at EUR 144.7 (135.8) million and thereforegrew at a faster rate than sales in percentage terms.New record for net incomeThe Group managed to expand earnings before taxes to EUR 149.2 (123.6)million. Eliminating the effects associated with the assumption of controlover ElringKlinger Marsuan Corporation, earnings before taxes still rose by6.5% to EUR 131.6 million. Overall, the ElringKlinger Group's tax rate fellslightly to 25.5% (27.8%) in 2013. On this basis, the ElringKlinger Group'snet income after non-controlling interests climbed to EUR 105.4 (85.7)million. After adjusting for the non-recurring contribution to earningsfrom the assumption of control at ElringKlinger Marusan Corporation, netincome for the period, after non-controlling interests, was up 8.2% at EUR92.7 (85.7) million. Thus, earnings per share stood at EUR 1.66 (1.35) pershare, adjusted for the assumption of control at ElringKlinger Marusan atEUR 1.46.Strong growth in order intakeOrder intake for the ElringKlinger Group rose by a significant 15.4% to EUR1,309.8 (1,134.8) million in the financial year just ended. On this basis,the increase in incoming orders was well above revenue growth.Correspondingly, order backlog as of December 31, 2013, was up by 30.6% toEUR 595.4 (456.0) million.Embracing lightweight design for vehicle body and chassis parts with newhydroforming hybrid technologyIn addition, ElringKlinger announced that it had secured a contract from aGerman vehicle producer for the supply of innovative lightweight componentsmade from metal-plastic materials. For the first time, the company willcombine the method of metal hydroforming with injection-molding for thepurpose of achieving significant weight savings. This will giveElringKlinger a foothold in the rapidly growing and technologicallyadvanced market for lightweight body and chassis components. In thiscontext, the company has benefited from the expertise of the Hummel Group,an acknowledged tooling specialist in the field of lightweight plasticconstruction and now fully integrated within the ElringKlinger Group.Serial production is scheduled to commence in 2015, and projected salesover a six-year period are expected to be EUR 120 to 130 million in total.Further revenue and earnings growth expected for 2014Based on the assumption that global car production will expand by 2 to 3%,the ElringKlinger Group anticipates that its revenue will grow by 5 to 7%organically, thus outpacing the market as a whole. Full consolidation ofElringKlinger Marusan Corporation will additionally contribute around EUR25 million to revenue in 2014. Adjusted for non-recurring items, EBIT for2014 is expected to reach a level of EUR 160 to 165 (144.7) million. Forthe purpose of improved comparability, the financial indicator EBIT will infuture no longer be reported inclusive of foreign exchange effects, whichare almost fully attributable to financing activities. Thus, as isstandard, EBIT will correspond to the operating result reported in theGroup income statement. In total, the Group's EBIT margin is expected toimprove slightly compared to 2013.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 28.03.2014 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: 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: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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