ElringKlinger AG / Key word(s): Half Year Results09.08.2013 07:50Dissemination 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.---------------------------------------------------------------------------Dettingen/Erms, August 9, 2013 +++ Despite the continued weakness shownby car markets throughout Europe, the ElringKlinger Group succeeded inmaintaining its forward momentum in consolidated sales and EBIT over thecourse of the second quarter of 2013. Sales revenue increased by 6.0% toEUR 303.3 (286.0) million. Earnings before interest and taxes (EBIT) roseby 2.6% to EUR 39.3 (38.3) million. Net income after non-controllinginterests edged up to EUR 26.2 (25.3) million during the same period.Buoyant sales in AsiaFueled in particular by important new product launches and an expansion inbusiness by almost 20% in Asia, ElringKlinger managed to offset the adverseeffects of a 20-year low in Western European vehicle sales and a 5%downturn in car production in the first six months. In the first half of2013, the Group generated well in excess of half its Original Equipmentrevenue - including exports - from sales in Asia as well as North and SouthAmerica. Thus, ElringKlinger was able to expand its consolidated revenue by3.6% in total during the first half of the year, taking the figure to EUR590.1 (569.8) million.Swing in earnings at exhaust specialist Hug Benefiting from strong demand in the US retrofit sector as well as newprojects relating to inland vessels and exhaust gas purification systemsfor stationary, natural-gas-fired power plants, underpinned by the use ofstate-of-the-art production technology, the Hug Group managed to increaseits revenues and earnings before taxes by a substantial margin. In thesecond quarter of 2013, sales revenues more than doubled to EUR 18.2 (8.4)million, up from EUR 11.0 (7.0) million in the first quarter of 2013. Whilethe Hug Group had incurred a loss of EUR 0.9 million before taxes in thesecond quarter of 2012, it posted positive pre-tax earnings of EUR 3.8million in the second three months of 2013. At the same time, the companymanaged to improve its earnings performance compared to the first quarterof 2013 (EUR 1.0 million).By contrast, the ongoing slump in France's vehicle market, where new carregistrations were down a further 11.2% in the first half of 2013, also hadan impact on capacity utilization at former Freudenberg Group companyElringKlinger Meillor SAS, France. At EUR 26.3 (27.0) million in the firsthalf of 2013, revenue generated by the three former Freudenberg sites as awhole was down on the previous year. ElringKlinger implementedrestructuring measures in France for the purpose of adapting local capacitylevels to the protracted weakness in demand. These measures producedcharges of EUR 1.8 million in the first quarter. All together, withfirst-quarter sales at EUR 13.4 (13.7) million, the three formerFreudenberg sites posted earnings before taxes of minus EUR 1.5 (0.2)million, which includes one-time restructuring costs. Second-quarterrevenue stood at EUR 12.9 (13.3) million, with sequentially improvedpre-tax earnings of EUR 0.3 (0.3) million.Operating result up 9.9% in second quarterAt EUR 74.5 (76.5) million, the Group's operating result for the first sixmonths of 2013 was slightly down on the figure recorded for the same perioda year ago. The ongoing purchase price allocations relating to HugEngineering AG and the Hummel-Formen Group had a negative effect of EUR 0.8(-1.2) million in total. Business relating to truck components still provedsluggish. Additionally, the second quarter in particular saw morepronounced start-up costs within the E-Mobility division relating to serialproduction projects that are scheduled for ramp-up towards the end of 2013.At the same time, compared to the same period a year ago, the Aftermarketsegment put in a lower earnings contribution as additional sales expenseswere allocated for the purpose of driving market expansion forward inFrance and North America. Having contracted by 14.6% in the first quarter,the Group's earnings at an operating level grew significantly in the secondquarter of 2013. In this period, the ElringKlinger Group saw its operatingresult improve by 9.9%, taking the figure to EUR 41.2 (37.5) million. Inthis context, the swing in earnings at Hug Engineering AG made a majorcontribution to the group's operating margin. It stood at 13.6% (13.1%) atthe end of the second quarter of 2013.Earnings before interest and taxes (EBIT) - in contrast to the operatingresult, this indicator includes foreign exchange gains and losses - totaledEUR 75.1 (75.6) million in the first six months of 2013. Whereas EBIT hadbenefited from foreign exchange gains of EUR 2.5 million in the firstquarter, it was impacted by foreign exchange losses of EUR 1.9 million inthe second quarter. Nevertheless, compared to the preceding quarter, EBITexpanded by EUR 3.5 million to EUR 39.3 (38.3) million in the secondquarter of 2013.The Group's EBIT margin in the first half of 2013 stood at 12.7% (13.3%).In the second quarter, the EBIT margin rose by 0.5 percentage pointsquarter on quarter to 13.0% (13.4%). Adjusted for the dilutive effectsattributable to the acquisitions of the former Freudenberg companies andthe Hummel-Formen Group, the EBIT margin for the ElringKlinger Group as awhole reached 13.4% in the second quarter - despite substantial start-upcosts in the E-Mobility division.In the first half of 2013, net finance costs fell by EUR 2.1 million yearon year to EUR 5.2 (7.3) million, primarily as a result of positive foreignexchange effects in the first quarter. In the second quarter, foreignexchange losses contributed to a quarter-on-quarter increase in net financecosts. Having stood at EUR 0.3 (5.0) million in the first quarter, netfinance costs totaled EUR 4.9 (2.3) million in the second quarter. Whileearnings before taxes for the first half as a whole matched the previousyear's figure precisely (EUR 69.3 million), the second quarter saw pre-taxearnings rise by 2.8% to EUR 36.3 (35.3) million.Net income after minorities up 3.6% in second quarter Benefiting from a lower tax rate, the ElringKlinger Group managed to liftnet income by 5.1% year on year in the first six months of 2013, taking thefigure to EUR 53.2 (50.6) million. The significant increase in earningscontributed by Swiss-based Hug Engineering AG, however, took net incomeattributable to non-controlling interests to EUR 3.3 (1.1) million. On thisbasis, net income attributable to shareholders of ElringKlinger AG stood atEUR 50.0 (49.5) million at the end of the first half of 2013. In the secondquarter, net income after non-controlling interests was up 3.6% at EUR 26.2(25.3) million. Earnings per share rose to EUR 0.79 (0.78) in the first sixmonths of 2013. In the second quarter earnings per share totaled EUR 0.41(0.40).Further growth in order intake Following on from an increase in the volume of new orders in the firstquarter to EUR 333.9 (269.4) million, order intake in the second quarter of2013 stood at EUR 374.1 (337.1) million, up 11.0% on the same period in2012. As of June 30, 2013, the value of order backlog stood at EUR 573.8(485.1) million, up 18.3% on the equivalent figure for the previous year.Annual forecast confirmed: revenue and earnings growth for annual period ElringKlinger has confirmed its forecast for the annual period as a whole.At best, the Group anticipates that the automobile industry as a whole willexpand slightly over the course of the year. Against this background, theGroup will be looking to generate organic revenue growth of 5 to 7% in2013. Should global car production merely stagnate in 2013, revenue growthis more likely to be positioned at the lower end of this range. Theoperating margin attributable to ElringKlinger's core business is likely tobe diluted slightly in 2013 as a result of the as yet below-averageaggregated profit margin of the acquired entities and the associatedpurchase price allocations. However, the dilutive effects in 2013 areexpected to be less pronounced compared to the previous year. Additionally,the substantial up-front expenses and start-up costs incurred in theE-Mobility division, which will be ramping up a number of serial productionprojects during the second half of the year, also have to be taken intoaccount. Despite these factors, however, ElringKlinger believes that itwill be in a position to expand its earnings before interest and taxes,adjusted for one-time charges, at a faster percentage rate relative torevenue growth. Adjusted EBIT for the financial year 2013 as a whole isthus expected to range from EUR 150 to 155 million (EUR 136.0 million in2012).09.08.2013 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 / 724-636Fax: 071 23 / 724-459E-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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