DGAP-News: ElringKlinger AG / Key word(s): Half Year Results2015-08-05 / 07:31---------------------------------------------------------------------Dettingen/Erms (Germany), August 5, 2015 +++ The ElringKlinger Grouprecorded revenue growth of 13.9% in the second quarter of 2015, taking thefigure to EUR 379.7 (333.5) million. Organically, i.e. excluding theeffects of acquisitions and foreign exchange gains, revenue expanded by4.5%. Thus, the ElringKlinger Group yet again managed to outpace theinternational vehicle markets when it came to the rate of growth achieved.Adjusted earnings before interest and taxes (EBIT), excluding purchaseprice allocations, totaled EUR 39.6 (42.3) million in the second quarter of2015. Net income after non-controlling interests stood at EUR 21.0 (28.5)million.Dynamic revenue growth continuesElringKlinger saw its sales revenue expand further against the backdrop ofsustained consumer demand in the United States and an increasingly dynamicupturn in Europe's vehicle markets. Additionally, the Group benefited fromseveral new product rollouts as well as significant structural growth inmany of the product groups targeted at CO2 reduction. At an organic level,i.e. without the effects of consolidation and currency translation, revenuegrowth totaled 4.5% in the second quarter of 2015. The first-timeconsolidation of former M&W Manufacturing Company, Inc., Warren/USA (M&W),contributed additional revenue of EUR 8.8 million. As a result of thedirection taken by the euro exchange rate, particularly in relation to theUS dollar, Swiss franc and some of the Asian currencies, Group revenue wasboosted by a further EUR 22.4 million in the second quarter of 2015. Totalrevenue generated by the ElringKlinger Group rose by 13.9% to EUR 379.7(333.5) million in the second quarter of 2015.In the first half of 2015, Group revenue grew by 14.2% to EUR 751.1 (657.5)million. Revenue of EUR 13.7 million was attributable to the first-timeinclusion of M&W, while the direction taken by foreign exchange ratesboosted the figure by EUR 46.5 million. Organic revenue growth in the firsthalf of 2015 amounted to 5.1%.Slight quarter-on-quarter improvement in EBIT margin in Q2 In the second quarter of 2015, adjusted Group EBIT before purchase priceallocations amounted to EUR 39.6 (42.3) million, up EUR 2.9 million on thefigure posted for the first quarter (EUR 36.7 million). Compared to thepreceding quarter, the EBIT margin before purchase price allocation was up0.5 percentage points at 10.4%. Adjusted Group EBIT before purchase priceallocation stood at EUR 76.3 (85.3) million in the first half of 2015. Thiscorresponds to an EBIT margin before purchase price allocations of 10.2%(13.0%).As anticipated on the basis of developments in the first three months,business in the Original Equipment segment continued to be driven by highlevels of capacity utilization over the course of the second quarter.Individual divisions within this segment again recorded a sustained surgein demand. This necessitated the introduction of extra shifts andadditional freight movements, thus pushing the cost base up by around EUR 5million in the second quarter of 2015. At the same time, the suddenappreciation of the Swiss franc against the euro had a dampening effect.ElringKlinger has already initiated measures aimed at optimizing itsearnings situation and is anticipating a gradual improvement in performanceby the end of the year.What is more, the EBIT margin in the second quarter of 2015 continued to bediluted by the most recent corporate acquisitions (around 0.7 percentagepoints) as well as the persistently weak performance of the E-Mobilitybusiness (around 0.4 percentage points).Net finance result for Q2 impacted by lower foreign exchange gains The first quarter of 2015 produced net foreign exchange gains of EUR 6.5(0.1) million in connection with financing activities. These gains weresubstantially lower in the second quarter, taking the figure into negativeterritory at EUR -3.4 (1.2) million. In total, net finance costs stood atEUR 6.5 (2.1) million in the second quarter of 2015. In the first half, netfinance costs amounted to EUR 3.0 (4.7) million. As a result, earningsbefore taxes totaled to EUR 31.8 (39.5) million in the second quarter andEUR 70.7 (78.9) million in the first half.Net income at EUR 22 million in Q2 - Earnings per share at EUR 0.33At EUR 9.8 (9.7) million, tax expenses in the second quarter of 2015remained largely unchanged on the figure posted for the same period a yearago. The Group tax rate rose to 30.8% (24.6%) as a result of smallerearnings contributions from countries with low tax rates. In the first sixmonths tax expenses amounted to EUR 19.5 (19.9) million; the tax rate was27.6% (25.2%).Net income stood at EUR 22.0 (29.7) million in the second quarter and atEUR 51.2 (59.0) million in the first half of 2015. After non-controllinginterests, net income was EUR 21.0 (28.5) million. In the first six monthsof 2015 net income after non-controlling interest totaled EUR 49.2 (56.5)million.On this basis, earnings per share for the second quarter of 2015 stood atEUR 0.33 (0.45). In the first half of 2015, earnings per share stood at EUR0.78 (0.89).Order intake rises by 15% from a high baseOn the back of a strong first quarter, order intake expanded at anencouraging rate in the second quarter of 2015. Compared to the same perioda year ago, it rose by 14.5% to EUR 435.1 (380.0) million. Eliminatingincoming orders attributable to the acquisition of the entity formallytrading as M&W, order intake was still up by 11.0% at EUR 422.0 (380.0)million. Thus, order backlog reached a new all-time high of EUR 786.2(649.1) million as of June 30, 2015.Outlook 2015 ElringKlinger anticipates that global automobile production in 2015 willexpand by a percentage figure at the lower end of the single-digit range.While growth in China is likely to weaken by a significant margin, theEuropean markets should develop better than previously expected.Against this backdrop, the ElringKlinger Group is targeting organic revenuegrowth of 5 to 7%. Additionally, the consolidation of ElringKlingerAutomotive Manufacturing Inc. (formerly M&W) will contribute around EUR 30million to Group revenue in the financial year as a whole.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 ElringKlinger Groupearnings in 2015. Based on the assumption that earnings improve in thesecond half of the year as a result of optimization measures alreadyinitiated, EBIT before purchase price allocation, adjusted fornon-recurring items, is expected to be around EUR 165 million.Key financials for Q2 and H1 2015in EUR m Q2 2015 Q2 2014 Change H1 2015 H1 2014 ChangeOrder intake 435.1 380.0 14.5% 849.1 711.2 19.4%Order backlog 786.2 649.1 21.1%(as of June 30, 2015)Sales revenue 379.7 333.5 13.9% 751.1 657.5 14.2%Gross profit 97.1 91.8 5.8% 192.6 183.0 5.2%Operating result/ 38.3 41.5 -7.7% 73.7 83.6 -11.8%EBITAdjusted EBIT 39.6 42.3 -6.4% 76.3 85.3 -10.6%before purchaseprice allocationsEarnings before tax 31.8 39.5 -19.5% 70.7 78.9 -10.4%Net income 22.0 29.7 -25.9% 51.2 59.0 -13.2%Net income attributable 21.0 28.5 -26.3% 49.2 56.5 -12.9%to shareholders ofElringKlinger AGEarnings per share 0.33 0.45 -26.7% 0.78 0.89 -12.4%(in EUR)
The full report on the second quarter and first half of 2015 can beaccessed at www.elringklinger.de/investor/2015-Q2-en.pdf__________________________________________________________________________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---------------------------------------------------------------------2015-08-05 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 --------------------------------------------------------------------- 383643 2015-08-05
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