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Press Release

ElringKlinger's fuel cell exceeds expectations in EU-funded 'GiantLeap' project

  • Successful completion of multi-year, EU-sponsored project to develop and test fuel-cell-powered range extender for electric buses under real conditions
  • Excellent laboratory results of the fuel cells fully confirmed in a bus of Dutch bus manufacturer VDL Bus & Coach
  • No impairment to performance and operating stability of the stacks even under adverse conditions until the end of the project

 

Dettingen/Erms (Germany), February 5, 2020 +++ Fuel cell stacks developed by ElringKlinger AG have achieved excellent results as part of the EU-sponsored "GiantLeap" project. The stacks were fitted to a full-electric bus of the Dutch bus manufacturer VDL Bus & Coach, tested under real traffic conditions, and, in the course of that, subjected to adverse conditions. The overall performance of the stacks was safeguarded in when they were exposed to detrimental operating conditions such as fuel starvation, elevated temperatures and over-pressure, emergency shutdowns of the system during the development period, and human error. The final report of the multi-year project states: "The overall performance of the system exceeded expectations. [...] ElringKlinger stacks used in GiantLeap displayed an excellent performance throughout the project. [...] Still, right to the end of the project, the stacks were in their specified power range."

Armin Diez, Head of the Fuel Cell Technology business unit at ElringKlinger, says: "We greatly appreciate the successful completion of the project. It again confirms the excellent testing results of our fuel cell stacks in a real application environment. The basis for the implementation of the stack technology used in this project are patented design features and high-precision manufacturing processes, which have been developed from existing products that have already been manufactured in series for decades. This know-how makes our fuel cells a high-performance, efficient, and sustainable solution for our customers on their way to zero-emission mobility."

As part of the "GiantLeap" project, a total of six corporations and institutions developed and established a fuel-cell-powered range extender for full-electric buses as partners. The range extender includes a system with two stacks. The fuel cells were used in a separate trailer for the bus and tested in real traffic. The project was sponsored by the EU via the Fuel Cell and Hydrogen Joint Undertaking (FCH JU). The objective of the FCH JU is to promote research, technological development, and demonstration of fuel cells and hydrogen technology in Europe.

ElringKlinger has been active in the research and development of fuel cells for around 20 years and operates in the market as a system and component supplier. The stacks are based on PEM technology and convert chemical energy into electrical energy and water using hydrogen and oxygen. They are particularly suitable for mobile applications with long-range operation. Applications include buses and cars, but also industrial applications, such as commercial vehicles and industrial trucks.

Stacks from ElringKlinger for integration into customer systems are available with an electrical output of 2 to 150 kW. These reduce the complexity as well as the costs of the full system through the takeover of system functionalities by integrated peripheral components.

About ElringKlinger AG
As an independent and globally positioned supplier, ElringKlinger is a powerful and reliable partner to the automotive industry. Be it passenger car or commercial vehicle, equipped with an optimized combustion engine, with hybrid technology, or with an all-electric motor - we offer innovative solutions for all types of drive system. In doing so, we are making a committed contribution to sustainable mobility. Our lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO2, while those equipped with alternative propulsion systems benefit from an extended range. Developing cutting-edge battery and fuel cell technology as well as electric drive units, we were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility. At the same time, we are committed to evolving our sealing technology for a wide range of applications. Our shielding systems are designed to ensure high-end temperature and acoustics management throughout the vehicle. Dynamic precision parts developed by ElringKlinger can be used in all types of drive system. Additionally, the Group's portfolio includes engineering services, tooling technology, and products made of high-performance plastics, which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 10,000 people at 45 ElringKlinger Group locations around the globe.

About the FCH JU
The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) is a unique public private partnership supporting research, technological development and demonstration (RTD) activities in fuel cell and hydrogen energy technologies in Europe. Its aim is to accelerate the market introduction of these technologies, realising their potential as an instrument in achieving a carbon-lean energy system. The three members of the FCH JU are the European Commission, fuel cell and hydrogen industries represented by Hydrogen Europe and the research community represented by the research grouping Hydrogen Europe Research.

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Press Release

ElringKlinger joins Hydrogen Council

Dettingen/Erms (Germany), January 15, 2020  +++  ElringKlinger AG has become a new member of the Hydrogen Council. The Hydrogen Council is a global initiative of energy, transport, and industry companies. It is committed to establishing hydrogen as a central energy source of the future. ElringKlinger will contribute to this initiative its long-standing expertise in the development of fuel cell components and stacks for mobile applications.

The Hydrogen Council was launched in 2017 at the World Economic Forum in Davos and brings together companies from various branches of industry and key markets around the globe. As the world's first initiative of this kind, the Hydrogen Council has set itself the goal of establishing hydrogen as one of the principal solutions in response to the energy transition. The interest group is looking to accelerate the use of hydrogen-based technologies and applications.

"Our admission to the Hydrogen Council is a testament to our many years of expertise relating to fuel cells," says Dr. Stefan Wolf, CEO of ElringKlinger AG. "Together with other member companies of the Hydrogen Council, we want to drive forward efforts to develop and market hydrogen-based mobility applications."

ElringKlinger has been active within the area of fuel cell technology for around 20 years and serves the market as both a component and a system supplier. The Group's focus is on low-temperature fuel cells (PEMFC). Combining the benefits of high power density and highly dynamic power supply, PEMFC stacks are the perfect choice for mobile applications and – in conjunction with a decentralized supply of hydrogen – they are already a viable option for today's mobility needs.

ElringKlinger PEMFC stacks designed for integration into customer systems are available with an electrical output of 2 to 150 kWel. Stacks with peripheral components and system functionalities integrated into the end plate module are also available as an option. These features enable considerable simplification and cost reduction with regard to the fuel cell system. They are suitable for use in both passenger cars and light commercial vehicles such as forklifts as well as buses and trucks.

Alongside its proprietary fuel cell stacks, ElringKlinger is acknowledged in particular for its innovative fuel cell components, including patented designs for metallic bipolar plates and plastic media modules that complement the product range.

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    Press Release

    ElringKlinger receives another high-volume lightweighting order from US electric vehicle manufacturer

    DGAP-News: ElringKlinger AG / Key word(s): Incoming Orders

    12.11.2019 / 09:56
    The issuer is solely responsible for the content of this announcement.


    ElringKlinger receives another high-volume lightweighting order from US electric vehicle manufacturer

    - Order for series supply of cockpit cross-car beams in hybrid design for new model of a leading US electric vehicle manufacturer

    - Contract over a period of five years from 2020 onwards

    - Medium to high double-digit million euro sales volume over the term of the agreement

    - Production at ElringKlinger's Californian site in Fremont

    Dettingen/Erms (Germany), November 12, 2019 +++ ElringKlinger AG is intensifying its cooperation with a leading US electric vehicle manufacturer. On the basis of its previous business relationship with lightweighting components, the global US electric vehicle pioneer has signed a series contract with the Dettingen-based supplier to deliver cockpit cross-car beams for its new full-electric model. The order will initially run for five years and has a total volume in the mid to high double-digit million euro range. Production at the Californian site in Fremont (USA) is scheduled to start in 2020.

    "This follow-up contract underscores how advantageous our lightweighting components also are for full-electric vehicles," says Dr. Stefan Wolf, CEO of ElringKlinger AG. "It represents a further step in the successful implementation of the Group's strategy of generating more than 25% of sales in the next decade in the future business areas of structural lightweighting and e-mobility."

    ElringKlinger uses an innovative production process that combines hydroforming and injection molding in a single process step to produce lightweight plastic components for car bodies. The resulting hybrid components made of plastic and metal combine the advantages of both materials: high dimensional accuracy of complex geometries with minimum tolerances and considerable structural strength in the event of a crash. At the same time, significant weight advantages over conventional metal variants can be achieved.

    Lightweight construction is well established at ElringKlinger: since the late 1990s, the Group has been working on the substitution of metal by plastic. ElringKlinger makes targeted use of its comprehensive expertise in materials, processes and fabrication in order to be able to offer customized lightweight components for the drive train and car body. Since 2015, the Group has been manufacturing cockpit cross-car beams and front-end carriers made of polymer-metal hybrids at its plants in Leamington (Canada) and Suzhou (China), and since 2017 in Fremont (USA).

    For further information, please contact:
    ElringKlinger AG
    Dr. Jens Winter
    Strategic Communications
    Max-Eyth-Straße 2
    72581 Dettingen/Erms (Germany)
    Phone: +49 7123 724-88335
    Fax: +49 7123 724-85 8335
    E-mail: jens.winter[at]elringklinger.com
    www.elringklinger.com

    About ElringKlinger AG
    As an independent and globally positioned supplier, ElringKlinger is a powerful and reliable partner to the automotive industry. Be it passenger car or commercial vehicle, equipped with an optimized combustion engine, with hybrid technology, or with an all-electric motor - we offer innovative solutions for all types of drive system. In doing so, we are making a committed contribution to sustainable mobility. Our lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO2, while those equipped with alternative propulsion systems benefit from an extended range. Developing cutting-edge battery and fuel cell technology as well as electric drive units, we were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility. At the same time, we are committed to evolving our sealing technology for a wide range of applications. Our shielding systems are designed to ensure high-end temperature and acoustics management throughout the vehicle. Dynamic precision parts developed by ElringKlinger can be used in all types of drive system. Additionally, the Group's portfolio includes engineering services, tooling technology, and products made of high-performance plastics, which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 10,000 people at 44 ElringKlinger Group locations around the globe.



    12.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service 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.
    Archive at www.dgap.de



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    Press Release

    ElringKlinger confirms positive cash flow development in third quarter

    DGAP-News: ElringKlinger AG / Key word(s): Quarterly / Interim Statement/9 Month figures

    06.11.2019 / 07:31
    The issuer is solely responsible for the content of this announcement.


    ElringKlinger confirms positive cash flow development in third quarter

    - Revenue expands by 6.4% to EUR 431.9 million in third quarter and by 3.1% to EUR 1,307.1 million after first nine months

    - EBIT margin before purchase price allocation up quarter by quarter from 1.6% (Q1) and 2.5% (Q2) to 4.8 % (Q3); total after nine months at 2.9% - EBIT before purchase price allocation at EUR 20.8 million (Q3) and EUR 38.4 million (9M)

    - Cash flow optimization program on track: operating free cash flow at EUR 30.8 million in third quarter and EUR 110.1 million in first nine months

    - Outlook reaffirmed within challenging market environment

    Dettingen/Erms (Germany), November 6, 2019 +++ ElringKlinger AG maintained its trajectory of growth in the third quarter of 2019: despite a downturn in global vehicle production, Group revenue was lifted by 6.4% year on year in the period from July to September 2019, taking the total to EUR 431.9 million. Organic revenue growth, i.e., the figure adjusted for currency effects and M&A activities, stood at 4.0%. Thus, ElringKlinger yet again outpaced the vehicle industry as a whole by a significant margin, with the latter experiencing a global downturn in production of 3.6% in the same period.

    North America continues to drive revenue growth
    Persistently strong demand in the region of North America continues to be a key revenue driver for ElringKlinger. Here, the Group recorded year-on-year growth of 25.0% in the third quarter of 2019. This above-average expansion in revenue was attributable to a number of new product rollouts as well as the sustained buoyancy in demand for Group products fitted to particularly successful vehicle models. Despite an economic slowdown of around 6% within the market, ElringKlinger also managed to increase revenue by 4.7% in the Asia-Pacific region. Sales revenue was also up in the Rest of Europe, rising by 4.3% in the third quarter of 2019. Growth was attributable primarily to the aftermarket business in Eastern Europe. By contrast, ElringKlinger had to contend with a decline in revenue by 6.3% in Germany as a result of the economic climate.

    Operating result improved quarter on quarter
    Earnings before interest and taxes (EBIT) and before purchase price allocation amounted to EUR 20.8 million in the third quarter and EUR 38.4 million in the first nine months of 2019. ElringKlinger thus managed to increase its EBIT margin before purchase price allocation quarter by quarter over the course of the year: after 1.6% and 2.5% respectively in the first two quarters it stood at 4.8% in the third quarter. In this context, the internal cost-reduction program proved successful, as did the operational improvements made at sites with a high level of capacity utilization. In addition, the Group received reimbursements with regard to tariffs that had adversely affected earnings in the previous quarters.

    Program to optimize cash flow on track
    Key financial performance indicators continued to improve within the ElringKlinger Group over the course of the third quarter of 2019. The cash flow optimization program initiated by the Management Board took further effect, as a result of which operating free cash flow was lifted to EUR 30.8 million in the third quarter and to EUR 110.1 million in the first nine months of 2019. This was driven in particular by a further reduction in net working capital. In addition, the Group continues to pursue its disciplined approach to capital expenditure. Consequently, it managed to scale back net debt by EUR 114.0 million in the last two quarters.

    "Our results for the first nine months illustrate that ElringKlinger continues to perform well despite the market downturn experienced by the automobile industry. This is a testament to our innovative product portfolio and our efficiency program," says Dr. Stefan Wolf, CEO of ElringKlinger AG. "Based on revenue growth, we by far exceeded the performance of the global vehicle industry as a whole, in addition to further improving our profitability in the course of the year with the help of cost-reduction measures implemented within the Group."

    Improvement in order intake and order backlog
    Despite the general market malaise, ElringKlinger's order books remained very robust. In the third quarter of 2019, the Group recorded an order intake of EUR 437.6 million. This represents an increase of EUR 25.8 million or 6.3% compared with the same quarter a year ago. Adjusted for currency effects, the increase amounted to EUR 3.2 million or 0.8%. At EUR 1,068.7 million, order backlog was up by EUR 41.5 million or 4.0% year on year. If exchange rates had remained unchanged, the figure would still have been up by EUR 19.8 million or 1.9%.

    Sustained weakness of global automobile production
    The market environment continues to be exposed to a number of political and economic uncertainties. Influencing factors such as trade disputes, various Brexit scenarios, and geopolitical conflicts in the Middle East may have an impact on the economy as a whole. This is compounded by the economic downturn within the global automotive industry. The key markets around the globe - China, North America, and Europe - in particular are showing signs of a slowdown, in some cases severe. Over the course of the year, projections issued by banks, industry associations, and information services have gradually been revised downward for 2019. Based on these figures, global vehicle production is now expected to fall by -6% to -4% in 2019, although it remains difficult to be precise about the extent of the contraction given the numerous political and economic uncertainties and the volatile and strained environment.

    Outlook reaffirmed in challenging market environment
    Despite this situation, based also on its robust order books, ElringKlinger is still of the opinion that its performance in terms of revenue will be better than that seen within the market as a whole. Against this background, the Group remains confident that it can outpace the expansion in global automobile production by 2 to 4 percentage points in terms of organic revenue growth. Assuming persistently strong demand in the NAFTA region, revenue growth may also be slightly higher.

    Alongside the market slowdown, elevated commodity prices, and the costs associated with trade disputes, persistently strong demand in the NAFTA region and start-up costs relating to a new plant in the United States will have an impact on earnings performance in 2019. ElringKlinger was quick to take countermeasures during the current financial year and introduced a far-reaching program aimed at streamlining its costs. ElringKlinger is also set to generate income in the high single-digit million-euro range in the fourth quarter from a real estate sale. Taking into account these factors and challenging market conditions, the Group continues to expect to achieve its target of an EBIT margin before purchase price allocation of around 4% to 5% for the 2019 financial year. This assumes that no further significant externalities emerge as a drag on earnings and that markets do not weaken any further than already anticipated.

    Key Financials for Q3 and 9M of 2019

    EUR million9M
    2019
    9M
    2018
    ∆ abs.∆ rel.Q3
    2019
    Q3
    2018
    ∆ abs.∆ rel.
    Order intake1,355.71,344.6+11.1+0.8%437.6411.8+25.8+6.3%
    Order backlog1,068.71,027.2+41.5+4.0%1,068.71,027.2+41.5+4.0%
    Revenue1,307.11,267.2+39.9+3.1%431.9405.8+26.1+6.4%
    of which FX effects  +19.8+1.6%  +9.9+2.4%
    of which M&A  -6.2-0.5%  +0.0+0.0%
    of which organic  +26.3+2.0%  +16.2+4.0%
    EBITDA123.6158.8-35.2-22.2%49.848.4+1.4+2.9%
    EBIT before purchase price allocation38.488.5*-50.1-56.6%20.823.8-3.0-12.6%
    EBIT margin before purchase
    price allocation (in %)
    2.97.0*-4.1PP-4.85.9-1.1PP-
    Purchase price allocation1.52.9-1.4-0.51.0-0.5-
    EBIT36.985.6*-48.7-56.9%20.322.9-2.6-11.4%
    Net finance cost-14.7-11.4-3.3--5.0-1.0-4.0-
    EBT22.274.2*-52.0-70.1%15.321.8-6.5-29.8%
    Taxes on income24.826.2-1.4-5.3%8.29.5-1.3-13.7%
    Net income (after non-controlling interests)-3.445.0*-48.4>-100%6.710.8-4.1-38.0%
    Earnings per share (in EUR)-0.050.71-0.76>-100%0.110.17-0.06-35.3%
    Investments (in property, plant, and equipment and investment property)74.9121.6-46.7-38.4%25.453.9-28.5-52.9%
    Operating free cash flow110.1-88.8+198.9>+100%30.8-46.5+77.3>+100%
    Net working capital478.3613.8-135.5-22.1%    
    Equity ratio (in %)40.742.1-1.4PP-    
    Net financial liabilities681.5728.5-47.0-6.5%    
    Employees (as of Sep. 30)10,49210,231+261+2.6%    

    * incl. gain from sale of Hug subgroup (EUR 21.1 million before taxes)

    For further information, please contact:
    ElringKlinger AG
    Dr. Jens Winter
    Strategic Communications
    Max-Eyth-Straße 2
    72581 Dettingen/Erms (Germany)
    Phone: +49 7123 724-88335
    Fax: +49 7123 724-85 8335
    E-mail: jens.winter[at]elringklinger.com

    About ElringKlinger AG
    As an independent and globally positioned supplier, ElringKlinger is a powerful and reliable partner to the automotive industry. Be it passenger car or commercial vehicle, equipped with an optimized combustion engine, with hybrid technology, or with an all-electric motor - we offer innovative solutions for all types of drive system. In doing so, we are making a committed contribution to sustainable mobility. Our lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO2, while those equipped with alternative propulsion systems benefit from an extended range. Developing cutting-edge battery and fuel cell technology as well as electric drive units, we were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility. At the same time, we are committed to evolving our sealing technology for a wide range of applications. Our shielding systems are designed to ensure high-end temperature and acoustics management throughout the vehicle. Dynamic precision parts developed by ElringKlinger can be used in all types of drive system. Additionally, the Group's portfolio includes engineering services, tooling technology, and products made of high-performance plastics, which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 10,000 people at 45 ElringKlinger Group locations around the globe.

    Disclaimer
    This release contains forward-looking statements. These statements are based on expectations, market evaluations and forecasts by the Management Board and on information currently available to them. In particular, the forward-looking statements shall not be interpreted as a guarantee that the future events and results to which they refer will actually materialize. Whilst the Management Board is confident that the statements as well as the opinions and expectations on which they are based are realistic, the aforementioned statements rely on assumptions that may conceivably prove to be incorrect. Future results and circumstances depend on a multitude of factors, risks and imponderables that can alter the expectations and judgments that have been expressed. These factors include, for example, changes to the general economic and business situation, variations of exchange rates and interest rates, poor acceptance of new products and services, and changes to business strategy.



    06.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service 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.
    Archive at www.dgap.de



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    Press Release

    ElringKlinger records positive free cash flow in the 2nd quarter of 2019

    DGAP-News: ElringKlinger AG / Key word(s): Half Year Results

    07.08.2019 / 07:30
    The issuer is solely responsible for the content of this announcement.


    ElringKlinger records positive free cash flow in the 2nd quarter of 2019

    - Revenue up by 0.8% to EUR 434.1 million in second quarter of 2019 and by 1.6% to EUR 875.2 million in first half of 2019

    - EBIT before purchase price allocation at EUR 10.7 million in period from April to June and EUR 17.6 million after six months

    - Group-wide program aimed at optimizing cash flow takes effect: operating free cash flow totals EUR 79.3 million in first six months of 2019

    - No tangible market recovery expected in second half: ElringKlinger anticipates decline in global automobile production of 2 to 4% year on year in 2019

    - Outlook for fiscal 2019 confirmed

    Dettingen/Erms (Germany), August 7, 2019 +++ ElringKlinger AG saw another slight increase in revenue over the course of the first half of 2019. Operating within a contracting market, the Group recorded revenue growth of 0.8% in the second quarter of 2019, taking the figure to EUR 434.1 million. Adjusted for currency effects and M&A activities, organic revenue growth stood at -0.3% in the period from April to June. During the same period, ElringKlinger thus managed to outperform - by five percentage points - the global vehicle industry as a whole, which saw aggregate automobile production fall by -5.3%.

    More pronounced downturn in market activity
    Contrary to market performance in general, ElringKlinger recorded further growth in Group revenues during the second quarter of 2019 in North America, which saw an expansion of 31.1%. The other key sales regions, by contrast, felt the impact of market slowdown. The Rest of Europe, which is ElringKlinger's largest sales market, saw revenue decline by 5.9% year on year in the second quarter. In the region encompassing Asia-Pacific, meanwhile, revenue was down by 7.4%. ElringKlinger also recorded a decline in its home market of Germany, which saw revenues fall by 9.6%.

    Earnings affected by high cost base
    At EUR 39.0 million, earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second quarter fell short of the figure posted for the same period a year ago (Q2 2018: EUR 49.3 million). This was attributable to the comparatively high cost base, driven primarily by the market downturn in Europe and China, the persistently strong demand in North America as well as commodity prices. Earnings before interest and taxes (EBIT), before write-downs relating to purchase price allocation, amounted to EUR 10.7 million in the second quarter of 2019 (Q2 2018: EUR 26.3 million). Therefore, the EBIT margin before purchase price allocation was 2.5% (Q2 2018: 6.1%). As a result of tax-related effects, the Group recorded earnings per share of EUR -0.14 in the second quarter.

    Group-wide program to optimize cash flow takes effect
    The program implemented by the ElringKlinger Group with a view to optimizing its cash flow situation resulted in a visible improvement in liquidity levels during the first six months of 2019. Thanks to a number of different measures - above all the continuous optimization of net working capital and a disciplined approach to investing activities - operating free cash flow increased to EUR 98.6 million in the second quarter of 2019 alone (Q2 2018: EUR -19.0 million). At the end of the first half of 2019, therefore, the figure was up at EUR 79.3 million in total (H1 2018: EUR -42.2 million).

    "As figures for the first half indicate, we are on track with measures initiated for the purpose of improving our cash flow," says Dr. Stefan Wolf, CEO of ElringKlinger AG. "We have moved forward considerably with regard to investments and working capital - and we intend to pursue this action plan in a determined manner. Having said that, we are currently operating within a market environment that is proving difficult as a whole."

    No palpable recovery of global automobile production in second half
    Based on the most recent market projections, the recovery of global vehicle production is likely to be less dynamic in the second half of 2019 than originally expected at the beginning of the year. ElringKlinger now anticipates a global market downturn of between 2% and 4% year on year for 2019 as a whole, rather than the modest growth rate of between 0% and 1% predicted at the beginning of the financial year. Nevertheless, the ElringKlinger Group continues to maintain its fiscal 2019 revenue target of growing organically by 2 to 4 percentage points above the rate of growth in the global market.

    Current order backlog remains solid but outlook for new orders less promising
    The Group's order book has proven resilient despite the challenging economic situation. With a volume of EUR 1,063.0 million at the end of the second quarter of 2019, its order backlog was up 2.4% year on year (Q2 2018: EUR 1,038.2 million); adjusted for currency effects, it expanded by 1.5%. The downturn in markets, however, was reflected in order intake. Totaling EUR 419.8 million, it was down by 8.5% year on year in the second quarter (Q2 2018: EUR 458.6 million). After adjusting for currency effects, the decrease was 7.8%.

    Outlook for fiscal 2019 confirmed
    Conditions are likely to remain challenging for the automotive industry, with key markets in China, North America, and Europe set to contract over the full year. Therefore, it would appear likely that market downturn will impact on ElringKlinger's earnings performance. At the same time, the Group is looking to counteract these developments with the help of several measures. In the first half of the year, for example, ElringKlinger launched an extensive internal cost-cutting program that will continue to deliver benefits as the Group moves forward. Additionally, the first exemption refunds are expected with regard to US tariffs. ElringKlinger also anticipates that it will generate income in the high single-digit million-euro range from a real estate sale to be executed by the end of the financial year. Furthermore, cost structures are to be further optimized at the Swiss plant and the North American sites. Overall, as a result of these various factors, the Group will still be looking to achieve an EBIT margin of around 4% to 5% before purchase price allocation despite the more difficult conditions it currently faces. This assumes that no further significant externalities emerge as a drag on earnings and that markets do not weaken any further than already anticipated.

    Key Financials for Q2 and H1 of 2019

    EUR millionH1
    2019
    H1
    2018
    ∆ abs.∆ rel.Q2
    2019
    Q2
    2018
    ∆ abs.∆ rel.
    Order intake918.1932.8-14.7-1.6%419.8458.6-38.8-8.5%
    Order backlog1,063.01,038.2+24.8+2.4%1,063.01,038.2+24.8+2.4%
    Revenue875.2861.5+13.7+1.6%434.1430.8+3.3+0.8%
    of which FX effects  +9.9+1.1%  +4.4+1.0%
    of which M&A  -6.2-0.7%  +0.0-
    of which organic  +10.0+1.2%  -1.1-0.3%
    EBITDA73.8110.4-36.6-33.2%39.049.3-10.3-20.9%
    EBIT before purchase price allocation17.664.6*-47.0-72.8%10.726.3-15.6-59.3%
    EBIT margin before purchase price allocation (in %)2.07.5*-5.5PP-2.56.1-3.6PP-
    Purchase price allocation1.01.9-0.9-47.4%0.51.0- 0.5-50.0%
    EBIT16.662.7*-46.1-73.5%10.225.3-15.1-59.7%
    Net finance cost-9.7-10.3+0.6+5.8%-8.7 -5.0 -3.7-74.0%
    EBT6.952.4*-45.5-86.8%1.520.3-18.8-92.6%
    Taxes on income16.716.7+0.0-10.210.9-0.7-6.4%
    Net income (after non-controlling interests)-10.134.2*-44.3>-100%-8.68.5-17.1>-100%
    Earnings per share (in EUR)-0.160.54-0.70>-100%-0.140.13-0.27>-100%
    Investments (in property, plant, and equipment and investment property)49.567.7-18.2-26.9%20.738.4-17.7-46.1%
    Operating free cash flow79.3-42.2+121.5>+100%98.6-19.0+117.6>+100%
    Net working capital498.9604.1-105.2-17.4%    
    Equity ratio (in %)40.742.8-2.1PP-    
    Net financial liabilities699.9682.6+17.3+2.5%    
    Employees (as of June 30)10,4119,954+457+4.6%    

    * Incl. gain from sale of Hug subgroup (EUR 21.1 million before taxes)

    For further information, please contact:
    ElringKlinger AG
    Dr. Jens Winter
    Strategic Communications
    Max-Eyth-Straße 2
    72581 Dettingen/Erms (Germany)
    Phone: +49 7123 724-88335
    Fax: +49 7123 724-85 8335
    E-mail: jens.winter[at]elringklinger.com

    About ElringKlinger AG
    As an independent and globally positioned supplier, ElringKlinger is a powerful and reliable partner to the automotive industry. Be it passenger car or commercial vehicle, equipped with an optimized combustion engine, with hybrid technology, or with an all-electric motor - we offer innovative solutions for all types of drive system. In doing so, we are making a committed contribution to sustainable mobility. Our lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO2, while those equipped with alternative propulsion systems benefit from an extended range. Developing cutting-edge battery and fuel cell technology as well as electric drive units, we were among the frontrunners when it came to positioning ourselves as a specialist in the field of e-mobility. At the same time, we are committed to evolving our sealing technology for a wide range of applications. Our shielding systems are designed to ensure high-end temperature and acoustics management throughout the vehicle. Dynamic precision parts developed by ElringKlinger can be used in all types of drive system. Additionally, the Group's portfolio includes engineering services, tooling technology, and products made of high-performance plastics, which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 10,000 people at 44 ElringKlinger Group locations around the globe.
    www.elringklinger.com

    Disclaimer
    This release contains forward-looking statements. These statements are based on expectations, market evaluations and forecasts by the Management Board and on information currently available to them. In particular, the forward-looking statements shall not be interpreted as a guarantee that the future events and results to which they refer will actually materialize. Whilst the Management Board is confident that the statements as well as the opinions and expectations on which they are based are realistic, the aforementioned statements rely on assumptions that may conceivably prove to be incorrect. Future results and circumstances depend on a multitude of factors, risks and imponderables that can alter the expectations and judgments that have been expressed. These factors include, for example, changes to the general economic and business situation, variations of exchange rates and interest rates, poor acceptance of new products and services, and changes to business strategy.



    07.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service 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.
    Archive at www.dgap.de



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    The 118th Annual General Meeting of ElringKlinger AG took place on May 16, 2023 as a virtual Annual General Meeting at the ICS International Congress Center Stuttgart, Messepiazza, 70629 Stuttgart, Germany.

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