DGAP-News: ElringKlinger AG / Key word(s): 9-month figures/QuarterResults05.11.2014 / 07:42---------------------------------------------------------------------Dettingen/Erms, November 5, 2014 +++ The ElringKlinger Group recordedanother double-digit percentage increase in revenue in the third quarter of2014. Group sales revenue rose by 13.9% to EUR 327.4 (287.5) million.Earnings before interest and taxes (EBIT) improved by 7.6% to EUR 41.2(38.3) million. Benefiting from foreign exchange gains, net income aftertaxes and non-controlling interests grew at a faster rate than revenue inthe third quarter, up 44.0% to EUR 32.4 (22.5) million.In the first nine months of 2014, revenue growth generated by theElringKlinger Group again exceeded the rate of expansion achieved by carmarkets around the globe. This positive trend was fueled by robust demandpatterns in key sales markets of the United States and China as well asan increase in the number of new vehicle registrations in Western Europe.At the same time, ElringKlinger benefited from a number of new productramp-ups during the reporting period, complemented by structural growth inmany of its product groups.Group revenue increased by 13.9% to EUR 985.0 (864.6) million in the firstnine months of 2014. Expressed in organic terms, i.e. without the effectsof consolidation and foreign exchange rates, revenue grew by 10.7% (8.5% inthe third quarter). In the third quarter, revenue also increased by 13.9%,taking the figure to EUR 327.4 (287.5) million. Similar to the precedingquarter, this included higher-than-average tooling revenue in preparationfor new lightweight engineering projects. The negative effect oftranslating sales revenue into the Group currency - the euro - wasequivalent to EUR 13.3 million in the first nine months of 2014. Bycontrast, at EUR 2.1 million, this effect was just within positiveterritory in the third quarter.Due to the retrospective application of IFRS 11 as regards the presentationof comparative prior-year figures, the joint venture ElringKlinger MarusanCorporation, Tokyo, Japan, was no longer accounted for on a proportionatebasis but rather in accordance with the equity method. As a result, theGroup revenue figure originally presented for the first nine months of 2013was reduced to EUR 864.6 million (and by EUR 6.5 million to EUR 287.5million in the third quarter), the difference being attributable to thisentity's revenue contribution (EUR 19.5 million) originally included at aproportionate rate of 50%. Effective from the first quarter of 2014, theentity was fully consolidated as a result of the assumption of controleffective from December 31, 2013, and accounted for in Group revenue withits total revenue of EUR 35.4 million. The additional contribution torevenue in the first nine months of 2014 thus amounted to EUR 17.7 million(EUR 6.1 million in the third quarter). When determining organic revenuegrowth, the joint venture was accounted for as if the entity had remainedsubject to proportionate consolidation, as originally presented in 2013.Further improvement in EBIT in third quarterDespite a number of adverse factors, EBIT grew by 11.4% year on year to EUR124.8 (112.0) million in the first nine months of 2014. In this context,the full consolidation of ElringKlinger Marusan Corporation (dilutiveeffect of around 0.2 percentage points on margin) as well as up-front andstart-up costs incurred in the new E-Mobility division (EBIT loss of EUR6.0 million) and the decline in earnings contributed by the Braziliansubsidiary exerted downward pressure.In the third quarter of 2014, the Group achieved EBIT of EUR 41.2 (38.3)million, thereby exceeding the figure for the same period a year ago by7.6%. Supported by a positive performance in the company's core business,the EBIT margin improved slightly compared with the preceding quarter, upfrom 12.4% to 12.6%, despite the fact that earnings contributed by the HugGroup in the third quarter, amounting to EUR 2.0 (2.3) million, failed toreach the extremely high levels recorded in the first half. In the thirdquarter, EBIT attributable to the E-Mobility division remained unchanged onthe previous quarter (EUR -1.9 million). Additionally, earnings generatedby the Brazilian subsidiary were down EUR 1.0 million on the previousyear's figure, having been adversely affected by the extremely poorperformance of Brazil's vehicle market. Before purchase price allocation,adjusted EBIT for the third quarter was EUR 42.1 (38.6) million. Theadjusted EBIT margin before purchase price allocation stood at 12.9%.For the purpose of improved comparability, as from January 1, 2014,ElringKlinger no longer includes foreign exchange gains and losses, whichare mainly attributable to financing activities, in the financial indicatorEBIT. Thus, as is standard, EBIT corresponds to the operating resultreported in the income statement. Based on the former method ofcalculation, EBIT would have amounted to EUR 48.0 (35.5) million in thethird quarter.Net finance costs impacted by foreign exchange gainsDue to positive foreign exchange effects equivalent to EUR 8.0 (-2.3)million, net finance costs fell sharply to EUR 1.0 (10.9) million in theperiod from January to September 2014. The improvement was attributableprimarily to the appreciation of the US dollar and the Chinese renminbiagainst the euro, as accounted for at the end of the reporting period. Inthe third quarter of 2014, the Group recorded net finance income of EUR 3.7million, as opposed to net finance costs of EUR 5.6 million for the sameperiod a year ago. The difference of EUR 0.7 million between the netfinance costs originally reported for the third quarter of 2013 (EUR 6.3million) and the figure now disclosed for that period is due to theearnings contribution made by ElringKlinger Marusan Corporation, whichuntil December 31, 2013, had been accounted for on the basis ofproportionate consolidation and, under the provisions of IFRS 11, has nowbeen consolidated retrospectively using the equity method. Correspondingly,earnings before taxes rose by a disproportionately large amount in thefirst nine months of 2014, up by 22.5% to EUR 123.8 (101.1) million. In thethird quarter, the ElringKlinger Group saw its earnings before taxes riseby 37.3% to EUR 44.9 (32.7) million.Net income after non-controlling interests grows by 44% in third quarterThe significant increase in earnings before taxes resulted in higher incometax expenses for the Group. The Group's tax rate in the first nine monthsremained largely unchanged at 25.0% (25.1%). Net income attributable to theshareholders of ElringKlinger AG rose by 22.5% to EUR 88.8 (72.5) million.In the third quarter of 2014, net income after non-controlling interestsexceeded the previous year's third-quarter figure by 44.0% and rose to EUR32.4 (22.5) million.On this basis, earnings per share amounted to EUR 1.40 (1.14) in the firstnine months. In the third quarter of 2014, earnings per share stood at EUR0.51 (0.36).Order backlog remains at record level, while order intake rises markedlyIn the third quarter of 2014 order intake rose by 13.9% to EUR 330.3(289.9) million compared with the same period a year ago. Thus, theElringKlinger Group is supported by a solid order backlog when it comes toachieving revenue growth targeted for both 2014 and 2015. At the end of thethird quarter, order backlog amounted to EUR 651.9 (572.4) million, i.e.13.9% up on the figure recorded for the same period a year ago. The Groupagain exceeded its previous record of EUR 649.1 million achieved in thepreceding quarter.Annual forecast confirmed - Revenue and earnings growth expected in FY 2014ElringKlinger has confirmed its forecast for the annual period 2014 as awhole. For 2014, ElringKlinger anticipates that production output in theglobal car market will expand by 2 to 3%. Against this backdrop, theElringKlinger Group has forecast that - on the back of revenue totaling EUR1,175.2 million in the 2013 financial year (ElringKlinger MarusanCorporation included on a proportionate basis) - its revenue will grow by 5to 7% organically in 2014, thus outpacing the market as a whole in terms ofpercentage growth. The full consolidation of ElringKlinger MarusanCorporation will additionally contribute around EUR 25 million to Grouprevenue. Full inclusion of this lower-margin subsidiary within the Group'sscope of consolidation will have a dilutive effect on the Group EBIT marginin 2014 (approx. -0.3 percentage points). By contrast, improved capacityutilization with regard to the production of lightweight components fortrucks following the introduction of Euro VI as well as the anticipatedearnings contribution from organic revenue growth and the improved earningsperformance at Hug should help to raise the Group's aggregate profit marginslightly in 2014. Adjusted for non-recurring items, EBIT is to rise to alevel of EUR 160 to 165 million.Contact: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 ---------------------------------------------------------------------05.11.2014 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: stephan.haas@elringklinger.de Internet: www.elringklinger.de ISIN: DE0007856023 WKN: 785602 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München End of News DGAP News-Service --------------------------------------------------------------------- 295086 05.11.2014
Germany
France
Spain
United Kingdom
Turkey
Italy
Hungary
Romania
South Africa
Switzerland
USA
Canada
Mexico
Brasil
China
India
Indonesia
Japan
South Korea
Thailand
