DGAP-News: ElringKlinger AG / Key word(s): Quarter Results2015-11-09 / 07:25---------------------------------------------------------------------ElringKlinger maintains dynamic revenue growth in third quarter 2015 - Revenue up by 11.8% (organically by 5.8%) to EUR 366.1 million - Adjusted EBIT before purchase price allocations (EUR 1.3 million) at EUR 36.7 million - Guidance for 2015 confirmed: organic revenue growth of 5 to 7% plus acquisitions; adjusted EBIT of between EUR 135 and 145 million before purchase price allocationsDettingen/Erms (Germany), November 9, 2015 +++ The MDAX-listedElringKlinger Group saw revenue increase by 11.8% to EUR 366.1 (prev. year:EUR 327.4) million in the third quarter of 2015. Demand for ElringKlingercomponents was fueled by buoyant growth in the North American market and bya sustained upturn in Europe's economy. In parallel, the Group benefitedfrom several new product rollouts as well as significant structural growthin many of the product groups targeted at CO2 reduction. Revenue growth wasalso attributable in part to the first-time inclusion of the US-basedentity formally known as M&W (now ElringKlinger Automotive Manufacturing),which had been acquired by ElringKlinger in February 2015. It contributedEUR 9.4 million to Group revenue in the third quarter. Additionally, thepositive effects of a weak euro - particularly in relation to the Swissfranc, the US dollar and some of the Asian currencies - boosted Grouprevenue by EUR 10.4 million. Excluding the effects of acquisitions andexchange rates, organic growth stood at 5.8% in the third quarter of 2015,thus again outstripping the rate of expansion achieved by the internationalvehicle markets.In the first nine months of 2015, Group revenue grew by 13.4% to EUR1,117.2 (985.0) million. The entity formally known as M&W accounted for EUR23.1 million of this total, while forex effects swelled the figure by EUR56.9 million. On an organic basis, revenue growth during this period stoodat 5.3%.Adjusted EBIT margin of 10% before purchase price allocation Adjusted earnings before interest and taxes (EBIT) amounted to EUR 36.7(42.1) million in the third quarter of 2015, before purchase priceallocations. This corresponds to an EBIT margin, before purchase priceallocation, of 10.0% (12.9%). In the first nine months of 2015, adjustedEBIT amounted to EUR 112.9 (127.4) million before purchase priceallocation.As anticipated on the basis of developments in the first half of thefinancial year, business in the Original Equipment segment continued to bedriven by very high levels of capacity utilization. Individual divisionswithin this segment recorded a disproportionately large surge in demand.The thus resulting additional costs, e.g. for extra shifts and additionalfreight movements, had an adverse effect on the Group's cost base andswelled it by around EUR 12 million in the third quarter. ElringKlinger hasalready initiated measures aimed at optimizing its earnings situation andis anticipating an improvement in performance as from 2016. In the firstnine months of 2015, additional costs totaled around EUR 21 million.Additionally, the EBIT margin in the third quarter of 2015 continued to bediluted - by around 0.4 percentage points respectively - by the most recentcorporate acquisitions as well as the persistently weak performance of theE-Mobility business.Foreign exchange losses impact on net finance costs in third quarter Foreign exchange gains, which are accounted for in the net finance result,fell sharply in the third quarter of 2015 compared to the same period ayear ago. At the same time, the Group recorded higher foreign exchangelosses. Thus, the net result of foreign exchange gains and losses fell toEUR -2.4 (6.8) million in the third quarter, while net interest costsremained largely unchanged year on year at EUR 3.2 (3.1) million. In total,therefore, the net finance result fell by EUR 9.3 million to EUR -5.6 (3.7)million. In the first nine months, net finance costs amounted to EUR 8.6(1.0) million.Earnings before taxes stood at EUR 29.8 (44.9) million in the third quarterof 2015 and at EUR 100.5 (123.8) million in the first nine months.Net income after non-controlling interests at EUR 20 million - Earnings pershare at EUR 0.32As a result of lower pre-tax profit, tax expenses fell to EUR 9.1 (11.1)million in the third quarter and to EUR 28.5 (31.0) million in the firstnine months of 2015. Due to the reduction in earnings contributions fromsubsidiaries in countries with a lower tax rate, the Group tax rate rose to30.5% (24.7 %) in the third quarter. The tax rate stood at 28.4% (25.0%) inthe first nine months of 2015.Net income amounted to EUR 20.7 (33.8) million in the third quarter and EUR71.9 (92.8) million in the first nine months of 2015. After non-controllinginterests, net income was EUR 20.0 (32.4) million in the third quarter. Inthe period from January to September 2015 net income after non-controllinginterests totaled EUR 69.2 (88.8) million.On this basis, earnings per share for the third quarter of 2015 stood atEUR 0.32 (0.51). In the first nine months of 2015, earnings per share stoodat EUR 1.09 (1.40).Weaker order intake due to forex effectsIn the third quarter of 2015, order intake stood at EUR 336.6 (330.3)million, i.e. 1.9% up on the figure recorded in the same quarter a yearago. However, it should be noted that the negative effects of foreignexchange rates exerted downward pressure on order intake due to the slightappreciation of the euro as of September 30, 2015. In the first half of2015, by contrast, order intake had been buoyed by foreign exchange rates.Organically, i.e. without the effects of foreign exchange rates andacquisitions (M&W), order intake would have expanded at a much morepronounced rate of 5.8% in the third quarter of 2015. As of September 30,2015, the Group's order backlog was EUR 756.7 (651.9) million.Outlook 2015: adjusted EBIT before purchase price allocation expected to bebetween EUR 135 and 145 millionElringKlinger has confirmed its forecast for the current financial year, asadjusted in September 2015. The company anticipates that global automobileproduction in 2015 will expand by a percentage figure at the lower end ofthe single-digit range. The European markets as a whole are expected todevelop better than originally anticipated, whereas the Chinese market islikely to slacken slightly.Against this backdrop, ElringKlinger is targeting organic revenue growth of5 to 7% for fiscal 2015 as a whole. Additionally, the consolidation offormer M&W will contribute around EUR 30 million to Group revenue.ElringKlinger is expected to incur additional exceptional charges of EUR 8to 18 million in the fourth quarter of 2015 due to the high levels ofcapacity utilization in specific divisions. Against this backdrop, EBITadjusted for non-recurring items and before purchase price allocation isexpected to be within a corridor of EUR 135 to 145 million in the 2015financial year. ElringKlinger anticipates that earnings performance willimprove in 2016. Exceptional charges are also likely to be incurred in thecoming financial year, but to a much lesser extent than in 2015.The special charges outlined above, earnings contributions from acquiredentities that are as yet below the Group average and sluggish demand in theE-Mobility division will have a dampening effect on the Group's EBITmargin.Key Financials for Q3 and the First Nine Months of 2015in EUR m Q3 2015 Q3 2014 Change 9 months 9 months Change 2015 2014Order intake 336.6 330.3 1.9% 1,185.7 1,041.5 13.8%Order backlog 756.7 651.9 16.1% - - -(as of Sept. 30, 2015)Sales revenue 366.1 327.4 11.8% 1,117.2 985.0 13.4%Gross profit 91.5 91.4 0.1% 284.1 274.4 3.5%Operating result/ 35.4 41.2 -14.1% 109.0 124.8 -12.7%EBITAdjusted EBIT 36.7 42.1 -12.8% 112.9 127.4 -11.4%before purchaseprice allocationsEarnings before 29.8 44.9 -33.6% 100.5 123.8 -18.8%taxNet income 20.7 33.8 -38.8 % 71.9 92.8 -22.5%Net income attri- 20.0 32.4 -38.3% 69.2 88.8 -22.1%butable to share-holders ofElringKlinger AGEarnings per share 0.32 0.51 -37.3% 1.09 1.40 -22.1%(in EUR)The full report on the third quarter and first nine months of 2015 can beaccessed at www.elringklinger.de/investor/2015-Q3-en.pdfAn explanatory conference call is scheduled to take place today, November9, 2015 (at 10 a.m. CET), in connection with the publication of the Group'sresults for the third quarter and the first nine months 2015. It can beaccessed at www.elringklinger.de.__________________________________________________________________________For further information, please contact:ElringKlinger AG Sabrina HauflerCorporate Communications/Investor RelationsMax-Eyth-Straße 272581 DettingenGermanyPhone: +49 7123 724-137Fax: +49 7123 724-85137Email: sabrina.haufler@elringklinger.com---------------------------------------------------------------------2015-11-09 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 --------------------------------------------------------------------- 410179 2015-11-09
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