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Press Release

ElringKlinger sees substantial growth in revenue and slight improvement in earnings based on preliminary figures for 2017 - Sale of Hug completed

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

01.03.2018 / 07:30
The issuer is solely responsible for the content of this announcement.


ElringKlinger sees substantial growth in revenue and slight improvement in earnings based on preliminary figures for 2017 - Sale of Hug completed

- Revenue up by 6.8% to EUR 1,664 million, organically by 8.1%

- EBIT before purchase price allocation slightly up on previous year at EUR 141.8 million

- Q4 2017: revenue increases by 3.0% to EUR 419.3 million, organically by 6.7%; EBIT before purchase price allocation stands at EUR 30.7 million, EBIT margin at 7.3%

- Sale of Hug formally completed as of March 1, 2018; income from deconsolidation within low double-digit million euro range

- Outlook for current financial year on March 27, 2018

Dettingen/Erms (Germany), March 1, 2018 +++ Based on preliminary, unaudited figures, the ElringKlinger Group grew significantly in the financial year just ended. Revenue totaled EUR 1,664.0 (1,557.4) million, up 6.8% year on year. Taking into account the effects of currencies and acquisitions, organic growth was as high as EUR 126.0 million or 8.1%. Changes in the scope of consolidation - primarily, hofer powertrain products GmbH, Nürtingen, Germany, a company in which ElringKlinger AG holds a 53% stake and that has been fully consolidated within the Group since February 6, 2017 - contributed EUR 9.3 million or 0.6% to growth in the financial year just ended. Currency translation diluted revenue generated by the Group by EUR 28.7 million in total, equivalent to -1.8%.

At EUR 141.8 (140.4) million, Group earnings before interest, taxes, and purchase price allocation were slightly above the figure posted a year ago. Progress made at the Swiss site was a planned, although additional expenses associated with the introduction of a local ERP system had a dilutive effect on earnings growth. Volumes requested by customers as part of their production scheduling remained high at the North American sites, while the cost of raw materials increased markedly. In combination, this exerted downward pressure on earnings. These factors are also expected to have an influencing effect in the course of the current financial year.

"Global demand for our products is very strong, as illustrated by significant organic growth in revenue by 8.1%," explains Dr. Stefan Wolf, Chief Executive Officer of ElringKlinger AG. "We have seen growth in all regions around the world." Group revenue increased by 5.1% (and by as much as 6.5% adjusted for currencies) in Europe, while Asia-Pacific recorded growth of 6.1% (9.5% adjusted for currencies) and the NAFTA region 10.7% (13.6% adjusted for currencies). The direction taken by exchange rates for the Chinese yuan, the Turkish lira, and the US dollar, in particular, had an adverse effect on revenue. "Currency effects are a natural consequence of ElringKlinger's global reach. The effects of foreign currency translation are reflected in revenue and - as was the case in the first nine months - are also expected to be noticeable in our net finance result for the 2017 financial year as a whole," adds Chief Financial Officer Thomas Jessulat.

Turning to other matters, the transaction covering the sale of Swiss subsidiary Hug Engineering AG was closed effective from March 1, 2018. ElringKlinger had already reached an agreement on December 21, 2017, for the sale of this company to a major French automotive supplier. Following this divestment, the Group can now focus on lightweighting and e-mobility, which encompass the three pillars of battery technology, fuel cell technology, and electric drive systems as promising fields for the future. The continuation of business would have necessitated significant investment to support the global advancement of the Exhaust Gas Purification division. As Dr. Wolf explains: "We were able to negotiate a favorable agreement for ElringKlinger. The positive effect on earnings in fiscal 2018 is expected to be in the low double-digit million euro range."

ElringKlinger will publish its full and definitive results for the 2017 financial year on March 27, 2018, together with its outlook for 2018.

EUR millionQ4 2017Q4 2016 abs.rel.FY 2017FY 2016 abs. rel.
Revenue419.3407.2+12.1+3.0%1,664.01,557.4+106.6+6.8%
of which FX effects  -16.9-4.2%  -28.7-1.8%
of which akquisitions  +2.0+0.5%  +9.3+0.6%
of which organic  +27.1+6.7%  +126.0+8.1%
EBITDA55.964.5-8.6-13.3%238.4231.2+7.2+3.1%
EBIT before purchase price allocation30.739.5-8.8-22.3%141.8140.4+1.4+1.0%
EBIT margin before purchase price allocation (in %)7.3%9.7%-2.4pp 8.5%9.0%-0.5pp 
Purchase price allocation1.01.1-0.1 4.54.8-0.3 
EBIT29.738.4-8.7-22.7%137.3135.6+1.7+1.3%
 

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter | Investor Relations/Corporate PR
Max-Eyth-Straße 2 | D-72581 Dettingen/Erms
Phone: +49 7123 724-88335 | Fax: +49 7123 724-85 8335
E-Mail: jens.winter[at]elringklinger.com

About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to vehicle manufacturers - with a firm commitment to shaping the future of mobility. Be it optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive systems. ElringKlinger's 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. In response to increasingly complex combustion engine technology, the Group also continues to make refinements with regard to gaskets in order to meet the highest possible standards. Additional solutions include thermal and acoustic shielding components as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. The Group's portfolio is complemented by products made of the high-performance plastic PTFE which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,300 people at 49 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.



01.03.2018 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 wins further large-scale serial production contract for lightweight components

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

30.01.2018 / 13:32
The issuer is solely responsible for the content of this announcement.


ElringKlinger wins further large-scale serial production contract for lightweight components

- Byton places order for hybrid cockpit cross-car beams for premium SUV

- Order represents double-digit million euro turnover covering a period of six years

- Start of production in 2019 at ElringKlinger's plant in Suzhou, China

Dettingen/Erms (Germany), January 30, 2018 +++ ElringKlinger AG has been awarded another major contract for its innovative lightweight structural components. Electric vehicle manufacturer Byton has placed an order with ElringKlinger for the supply of cockpit cross-car beams to be used in the company's premium SUV model. Both parties are also targeting to integrate the same lightweight technology into other, future Byton models. Development work for this project will be conducted at the technical centers in Silicon Valley and Southern Germany. Starting 2019 the components will be produced at ElringKlinger's plant in Suzhou, China. In total, the contract covers a double-digit million euro turnover over a period of six years.

"Byton is the second innovative supplier of the next generation of vehicles to have opted for our cockpit cross-car beams. This clearly illustrates the value of this lightweight component to customers: the tangible weight savings and its flexible adaptability to individual requirements are of tremendous relevance to manufacturers," explains Dr. Stefan Wolf, CEO of ElringKlinger AG. "It comes as no surprise that the cockpit cross-car beam was one of the first interior components of the new SUV model for which the customer placed an order at such an early stage."

The production process of cockpit cross-car beams manufactured by ElringKlinger includes an innovative method of hydroforming and plastic injection-molding combined into a single-step process. The resulting structural parts made of polymer and metal combine the benefits of both materials: design freedom, tremendous integration opportunities of complex geometries, excellent precision in terms of shape and dimensions with minimal tolerances as well as outstanding structural resistance in the event of an accident. At the same time, the cross-car beams can help to achieve significant weight reductions compared to conventional metal carrier designs.

ElringKlinger has been working on substituting metal by plastics over a period spanning more than 15 years and has accumulated considerable know-how in this field with regard to materials and production methods. The Group has already been manufacturing structural parts made of polymer-metal hybrids at its sites in Leamington (Canada) and Suzhou (China) since 2015 as well as in Fremont (USA) since mid-2017. The latest order confirms and encourages the strategy of ElringKlinger into lightweight body and chassis components.


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


About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to vehicle manufacturers - with a firm commitment to shaping the future of mobility. Be it optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive systems. ElringKlinger's 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. In response to increasingly complex combustion engine technology, the Group also continues to make refinements with regard to gaskets in order to meet the highest possible standards. This is complemented by solutions centered around thermal and acoustic shielding technology. Additionally, the Group's portfolio includes products made of the high-performance plastic PTFE which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,300 people at 49 ElringKlinger Group locations around the globe.



30.01.2018 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 and Chengfei Integration Technology conclude framework agreement on joint venture for battery technology

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

27.11.2017 / 11:47
The issuer is solely responsible for the content of this announcement.


ElringKlinger and Chengfei Integration Technology conclude framework agreement on joint venture for battery technology

- Establishment of a joint venture for the development, production, and distribution of lithium-ion battery modules

- Complementary business operations: Chengfei Integration Technology contributes battery cells and ElringKlinger all other module components to joint venture

- Focus on international e-mobility projects in Asia, Europe, and the US

Dettingen/Erms (Germany), November 27, 2017 +++ ElringKlinger AG has reached an agreement with Sichuan Chengfei Integration Technology Co., Ltd. (CITC), China, outlining the companies' collaboration within the area of battery technology. A framework agreement covering the terms of the joint venture was signed by the partner companies on November 24, 2017. The agreement initially runs for a period of ten years up to December 31, 2027. The framework agreement stipulates the establishment of a joint venture entity for the development, production, and distribution of lithium-ion battery modules for the global automotive market. In this context, the focus is on international e-mobility projects in Asia, Europe, and the United States.

The joint venture brings together complementary operations of the two parties to the contract: while CITC is responsible, via its subsidiary China Aviation Lithium Battery Co., Ltd. (CALB), for the electrochemical constituents of the cell, ElringKlinger will be contributing the remaining components of the module, such as highly innovative cell contact systems and cell housings. Furthermore, ElringKlinger will oversee the areas of battery module design and production. In addition to gaining mutual access to resources, the two joint venture partners will benefit from each other's expertise and the many years of experience amassed by both companies in various sub-disciplines of battery technology. The aim of this collaborative approach in the field of battery technology is to evolve business activities in pursuit of a sustained improvement in market penetration.

Dr. Stefan Wolf, CEO of ElringKlinger AG, commented as follows: "The joint venture framework agreement provides a classic win-win constellation for the two partners. CITC now has at its side a global automotive supplier with expertise in industrialization and sales, while ElringKlinger will in future be working with one of the leading cell producers." "This is another important step forward with regard to our strategic positioning in the area of sustainable mobility," he added.

ElringKlinger has been active in the field of battery technology since as early as 2009 and commenced serial production of various components and cell contact systems for lithium-ion batteries several years ago. Additionally, ElringKlinger develops and manufactures complete battery modules and systems as well as aggregate energy storage units.

CITC is a subsidiary of the state-owned enterprise Aviation Industry Corporation of China. Among other shareholdings, CITC has a stake in CALB, which produces batteries and power supply systems for various applications. As a certified manufacturer of lithium-ion cells and energy storage systems, CALB will contribute the electrochemical constituents of the battery cell to the joint venture.


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


About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to vehicle manufacturers - with a firm commitment to shaping the future of mobility. Whether optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive system. ElringKlinger's 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. In response to increasingly complex combustion engine technology, the Group also continues to refine and evolve its offering within the area of seals and gaskets in order to meet the highest possible standards. This is complemented by thermal and acoustic shielding technology as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. Additionally, the Group's portfolio includes products made of the high-performance plastic PTFE, which is also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,300 people at 49 ElringKlinger Group locations around the globe.



27.11.2017 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 strong revenue growth in third quarter of 2017

DGAP-News: ElringKlinger AG / Key word(s): Quarter Results/9-month figures

07.11.2017 / 07:29
The issuer is solely responsible for the content of this announcement.


ElringKlinger records strong revenue growth in third quarter of 2017

- Sizeable delivery schedule requests by customers prompt organic revenue growth of 10% in third quarter and 9% in financial year to date

- EBIT before purchase price allocation rises by EUR 2.2 million or 7% year on year to EUR 34.8 million in third quarter

- Schuldscheindarlehen covering EUR 200 million is issued in mid-July for the first time

- Revenue and earnings guidance for 2017 confirmed

Dettingen/Erms (Germany), November 7, 2017 +++ The ElringKlinger Group continued to see its business develop during the third quarter of 2017: revenue improved by 7.9% year on year to EUR 403.6 million and earnings (EBIT before purchase price allocation) by 6.7% to EUR 34.8 million. Due to the appreciation of the euro, currency effects - particularly relating to the Chinese yuan, US dollar, and Swiss franc - diluted revenue by EUR 10.9 million or 2.9%. At the same time, hofer powertrain products GmbH, which has been fully consolidated since February 2017, contributed EUR 1.4 million or 0.4% to revenue. As a result, organic growth stood at EUR 38.9 million or 10.4%.

The Group's substantial growth in revenue was driven primarily by a wide range of global product rollouts as well as by sizeable requests by customers in the NAFTA region for the delivery of components as part of their production scheduling. In fact, the American markets in general represent a strong growth region for ElringKlinger at present. In the NAFTA region alone the Group recorded revenue growth of 16.0% in the quarter just ended, while sales in South America expanded by an equally buoyant 14.3%. Group revenue growth in the Asia-Pacific region was slightly less pronounced at 6.1% but nevertheless perceptively strong. At 6.8% (Germany) and 4.0% (Rest of Europe), revenue generated in Europe also expanded at a significant rate.

"In addition to showing strong revenue growth, the Group's figures for the third quarter also point to an improvement in our performance at an operational level," says CEO Dr. Stefan Wolf. Despite the rise in commodity prices over the course of the year, ElringKlinger's gross profit margin rose to 25.7 (25.0)% in the third quarter and to as much as 25.9 (25.1)% in the first nine months. However, this positive performance was dampened in part by higher selling costs attributable to additional expenditure at sites having to respond to sizeable requests from customers as part of their production scheduling. In total, EBIT (before purchase price allocation) amounted to EUR 34.8 (32.6) million in the third quarter and EUR 111.1 (100.8) million in the first nine months, which corresponds to a margin of 8.6 (8.7)% and 8.9 (8.8)% respectively.

Similar to the situation in the second quarter, the strength of the euro led to exchange differences, the net result of which increased finance costs by EUR 4.2 (0.0) million. Additionally, higher income tax expenses of EUR 8.7 (7.8) million reduced earnings per share by 5 cents to EUR 0.25 (0.30) in the third quarter. In the first nine months, however, earnings per share rose slightly to EUR 0.94 (0.93).

In July 2017, ElringKlinger successfully issued a Schuldscheindarlehen (loan granted to the company against a form of promissory note) for the first time in its corporate history. The placement was heavily oversubscribed, as a result of which the volume originally planned by the company was doubled to EUR 200 million. With an average fixed interest rate of 1.23% and maturities of 5, 7, and 10 years, the Group secured attractive terms for the purpose of refinancing existing liabilities while also optimizing its maturity structure.

The Management Board has reaffirmed its guidance for sales and earnings in 2017. Having outpaced the expansion of global vehicle production by around 6 percentage points in the first nine months on the basis of organic revenue growth, ElringKlinger's market outlook for the fourth quarter is slightly more restrained. Against the backdrop of differing projections for the respective regions of the world, the Group remains confident that it can exceed the global market growth rate by 2 to 4 percentage points on the basis of organic growth in sales.

Assuming that the fourth quarter does not produce any macroeconomic turbulence, e.g., due to an escalation of the conflict in North Korea, and that the situation in Catalonia is not exacerbated, e.g., in the form of a general strike, the Group continues to anticipate that it will improve its operating result (EBIT before purchase price allocation) and achieve an EBIT margin (before purchase price allocation) of around 9 to 10% in the year as a whole.

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

EUR million9M 20179M 2016 ∆ abs.∆ rel.Q3 2017Q3 2016 ∆ abs.∆ rel.
Order intake1,288.61,248.9+39.7+3.2%381.0383.7-2.7-0.7%
Order backlog976.5894.7+81.8+9.1%976.5894.7+81.8+9.1%
Revenue1,244.71,150.3+94.4+8.2%403.6374.2+29.4+7.9%
of which FX effects  -11.8-1.0%  -10.9-2.9%
of which acquisitions  +7.3+0.6%  +1.4+0.4%
of which organic  +98.9+8.6%  +38.9+10.4%
EBITDA182.5166.8+15.7+9.4%59.455.1+4.3+7.8%
EBIT before purchase price allocation111.1100.8+10.3+10.2%34.832.6+2.2+6.7%
EBIT margin before purchase price allocation (in %)8.98.8+0.1pp-8.68.7-0.1pp-
Purchase price allocation3.53.6-0.1-0.91.4-0.5-
EBIT107.797.2+10.5+10.8%33.931.2+2.7+8.7%
Net finance cost-19.2-12.5-6.7--8.0-3.6-4.4-
EBT88.484.7+3.7+4.4%25.927.6-1.7-6.2%
Taxes on income25.923.4+2.5+10.7%8.77.8+0.9+11.5%
Effective tax rate
(in %)
29.327.6+1.7pp-33.728.2+5.5pp-
Net income
(after non-controlling interests)
59.658.8+0.8+1.4%16.119.0-2.9-15.3%
Earnings per share (in EUR)0.940.93+0.01+1.1%0.250.30-0.05-16.7%
Investments (in property, plant, and equipment)114.1116.6-2.5-2.1%42.143.0-0.9-2.1%
Operating free cash flow-53.3-3.9-49.4<-100.0%-31.51.8-33.3<-100.0%
Net working capital595.7541.0+54.7+10.1%    
Equity ratio (in %)44.146.9-2.8pp-    
Net financial liabilities644.4528.9+115.5+21.8%    
Employees
(as of Sept. 30)
9,3768,433+943+11.2%    
 

About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to vehicle manufacturers - with a firm commitment to shaping the future of mobility. Be it optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive systems. ElringKlinger's 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. In response to increasingly complex combustion engine technology, the Group also continues to make refinements with regard to gaskets in order to meet the highest possible standards. Additional solutions include thermal and acoustic shielding components as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. The Group's portfolio is complemented by products made of the high-performance plastic PTFE which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,300 people at 49 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.



07.11.2017 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 makes further ground in second quarter of 2017

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

07.08.2017 / 07:38
The issuer is solely responsible for the content of this announcement.


ElringKlinger makes further ground in second quarter of 2017

- Strong demand sees revenue expand by 4.3% in second quarter of 2017 and by 8.4% in first half of 2017

- EBIT before purchase price allocation up by 12% to EUR 76.3 million in first half; EBIT margin before purchase price allocation improves to 9.1%

- Guidance for 2017 confirmed

Dettingen/Erms (Germany), August 7, 2017 +++ After a strong start to the year ElringKlinger AG maintained its forward momentum in the second quarter of 2017. Despite automobile production stagnating at its prior-year level, the Group managed to increase sales revenue by 4.3% to EUR 407.8 (390.9) million. Asked to comment, CEO Dr. Stefan Wolf said, "The good situation in terms of orders and our sustained revenue growth at a high level are a reflection of the strong demand for our products. One of the most striking aspects is that we managed to expand especially in those markets that were generally in decline in the second quarter." In the NAFTA region, for instance, ElringKlinger lifted sales revenue by 8.5% year on year in the second quarter, while automobile production in this market was down by around 3%. The situation was similar in the Asia-Pacific region, where ElringKlinger recorded revenue growth of 12.6%. By contrast, China - as the most important market in Asia - was faced with a slight slowdown of around 1%.

The dynamic level of growth recorded by ElringKlinger was attributable to a number of new product rollouts. "These ramp-ups covered the entire product portfolio within the Original Equipment segment. We also saw solid growth in the other segments of our business during the second quarter, with Aftermarket expanding by 3.1% and Engineered Plastics by 3.6%," said Wolf.

Building on this positive performance, the Group recorded organic revenue growth of EUR 18.1 million, or 4.6%, in the second quarter just ended. There are revenue streams from acquisitions to be considered amounting to EUR 2.6 million, or 0.7%, contributed by hofer powertrain products GmbH, by the company formerly known as COdiNOx Beheer B.V., and by the business operations of Maier Formenbau GmbH. Currency effects - particularly with regard to the Chinese yuan, the Turkish lira, and the British pound - diluted revenue by EUR 3.8 million, or -1.0%, as a result of which reportable revenue of EUR 407.8 million for the quarter just ended was up EUR 16.9 million, or 4.3%, on the figure posted for the same period a year ago.

On the back of strong revenue growth, earnings before interest and taxes (EBIT) also expanded in the second quarter, although the improvement in earnings was affected slightly by several factors. First, the implementation of the Group-wide ERP system at the Swiss site effective from May 1, 2017, led to a slight delay in the scheduled improvement process. Secondly, the large volume of components requested by customers as part of their production scheduling temporarily led to additional selling expenses at some of the NAFTA sites. Furthermore, the volatile nature of project-driven business in the Exhaust Gas Purification division had an impact on earnings due to the fact that a strong fourth quarter in 2016 was now followed by two less buoyant quarters in 2017. In total, the Group recorded EBIT before purchase price allocation of EUR 37.2 (36.2) million in the second quarter, which corresponds to a margin of 9.1 (9.3)%. The year-on-year improvement was more noticeable in the first half as a whole, with the Group growing by EUR 8.1 million to EUR 76.3 (68.2) million, which translates into a margin of 9.1 (8.8)%.

ElringKlinger also remained on track with regard to its other performance indicators: at 5.4%, net working capital rose at a slower rate than revenue (+8.4%) in the first half of 2017. On a quarterly basis, investments in property, plant, and equipment and real estate increased by EUR 6.3 million to EUR 42.4 (36.1) million. In the first half of 2017 as whole, however, they were down by EUR 1.6 million year on year at EUR 72.0 (73.6) million. Correspondingly, the investment ratio fell to 8.6 (9.5)%. Additionally, strong revenue growth in the first two quarters and the associated temporary increase in inventories and trade receivables resulted in a decline in operating free cash flow to EUR -21.8 (-5.7) million; of this total, a figure of EUR -10.2 (-6.3) million was attributable to the second quarter.

Based on the current market climate, ElringKlinger has kept its forecast for global car production unchanged at 1 to 2% for 2017 as whole and continues to expect revenue to exceed this figure by around 2 to 4 percentage points. Provided that the Swiss site is able to sustain its positive performance, the Management Board can affirm its guidance for the annual period as a whole, the target being to achieve an EBIT margin before purchase price allocation of around 9 to 10%. ElringKlinger's medium-term revenue and earnings targets have also been confirmed.

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

EUR millionH1 2017H1 2016∆ abs.∆ rel.Q2 2017Q2 2016∆ abs.∆ rel.
Order intake907.6865.2+ 42.4+4.9%413.3441.2-27.9-6.3%
Order backlog999.1885.2+113.9+12.9%999.1885.2+113.9+12.9%
Revenue841.1776.1+65.0+8.4%407.8390.9+16.9+4.3%
of which FX effects  -0.9-0.1%  -3.8-1.0%
of which acquisitions  +5.9+0.8%  +2.6+0.7%
of which organic  +60.0+7.7 %  +18.1+4.6%
EBITDA123.1111.6+11.5+10.3%60.558.5+2.0+3.4%
EBIT before purchase price allocation76.368.2+8.1+11.9%37.236.2+1.0+2.8%
EBIT margin before purchase price allocation (in %)9.18.8+0.3 PP-9.19.3-0.2 PP-
Purchase price allocation2.62.2+0.4-1.41.0+0.4-
EBIT73.766.0+7.7+11.7%35.835.2+0.6+1.7%
Net finance cost-11.2-9.0-2.2-24.4%-7.8-2.6-5.2-200.0%
EBT62.557.0+5.5+9.6%28.032.6-4.6-14.1%
Taxes on income17.215.6+1.6+10.3%8.79.1-0.4-4.4%
Effective tax rate (in %)27.527.4+0.1 PP-30.927.9+3.0 PP-
Net income
(after non-controlling interests)
43.539.8+3.7+9.3%18.422.6-4.2-18.6%
Earnings per share
(in EUR)
0.690.63+0.06+9.5%0.290.36-0.07-19.4%
Investments (in property, plant, and equipment)72.073.6-1.6-2.2%42.436.1+6.3+17.5%
Operating free cash flow-21.8-5.7-16.1< -100%-10.2-6.3-3.9-61.9%
Net working capital570.6541.6+29.0+5.4%    
Equity ratio (in %)44.446.3-1.9 PP-    
Net financial liabilities614.6532.0+82.6+15.5%    
Employees (as of June 30)9,0128,283+729+8.8%    
 

About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to vehicle manufacturers - with a firm commitment to shaping the future of mobility. Be it optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive systems. ElringKlinger's 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. In response to increasingly complex combustion engine technology, the Group also continues to make refinements with regard to gaskets in order to meet the highest possible standards. Additional solutions include thermal and acoustic shielding components as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. The Group's portfolio is complemented by products made of the high-performance plastic PTFE which are also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,000 people at 49 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.



07.08.2017 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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