ElringKlinger AG — Earnings Release 2002

Apr 15, 2003

News Details

Corporate | 15 April 2003 15:13

ElringKlinger AG english

ElringKlinger again successful in 2002 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– The ElringKlinger Group, Dettingen/Erms, a multinational supplier of cylinder- head gaskets, special-purpose gaskets, shielding components, and plastic-cover modules to the automobile industry, a major supplier of gasket sets to the independent automotive aftermarket, and a key supplier of PTFE-products for use in various industrial applications and engine test-bench services, has reported substantial sales and earning growth for a difficult fiscal year 2002. The group further strengthened its positions on international markets during the fiscal year. In North America, its share of the cylinder-head-gasket market rose to around 25 %. The group manufactures items for that market locally at its plants in Canada and Mexico, which turned out 4.4 million cylinder-head gaskets during the fiscal year. Another 1.5 million were supplied to that market from Germany. In China, the group increased its shareholding in its existing joint venture with Chinese partners, which reported profitable operations for the first time during FY 2002, to a majority 78 %. The outlook for further growth in China appears to be excellent. The first large orders for cylinder-head gaskets to be received from South Korean and Japanese automobile manufacturers were booked during the fiscal year. Consolidated group net sales rose to EURO 392.5 million, an increase of 6.9 % compared to the figure reported for FY 2001. Consolidated group net income was also up by 6.9 % to EURO 20.2 million. ElringKlinger AG consolidated net sales rose to EURO 267.9 million, an increase of 7.2 % compared to the figure reported for FY 2001. Its consolidated net income was up by 17.5 % to EURO 31.5 million, largely due to an upturn in its North-American OEM-business. Thanks to new products, especially new shielding components and plastic cam-cover modules, that it introduced during fiscal year 2002, sales to the European automobile industry and the international automotive aftermarket remained roughly at the level of the preceding fiscal year, in spite of a general downturn in those markets. However, sales of PTFE-products and test-bench services were down, due to the economic recession. The ElringKlinger Group FY 2002 pretax earnings would have been even better had it not been for the discounting demanded by the marketplace, the appreciation of the Euro against the U.S. Dollar and British Pound, the devaluation of the Brazilian Real, and high startup costs at its Canadian subsidiary. Now that ElringKlinger AG has exceeded its goal of arriving at a 40-% equity/assets ratio, the company would like to reward its stockholders by doubling dividends to EURO 2.50 per share, assuming that they will approve a resolution to that effect at its forthcoming annual general stockholders meeting. In spite of the continuing economic recession and the declining production figures reported by the automobile industry, FY 2003 has started off on a high note for ElringKlinger, thanks to several new-product introductions and booming sales of Diesel-engined vehicles. ElringKlinger AG sales for the first quarter were up by 15 % and consolidated group sales were up by 5 %. Pretax income was up by a dual-digit percentage compared to the figure reported for the first 2 quarter of FY 2002. The remainder of FY 2003 is viewed with damped optimism. Several vehicle manufacturers have announced production cutbacks for the second quarter in view of slow sales. However, the prospect of an early end of the Iraq war has fostered hopes that politically motivated economic uncertainties and the resultant buyer restraint and reluctance to make new capital investments will soon be overcome. The ElringKlinger Groups management board is confident that FY 2003 will be another banner year for the group. The outlook for the groups long-term growth has been given a shot in the arm by its acquisition of a worldwide license for an advanced cylinder-head-gasket technology. This new technology broadens the range of options available in engineering internal-combustion engines in relation to weight reduction, improving performance, and cutting toxic exhaust emissions. The group has thus secured yet another long-term competitive advantage for itself. ElringKlinger AG annual general stockholders meeting will be held in Stuttgart on June 5, 2003. Its stock, which is listed on the Frankfurt Stock Exchange, closed at EURO 33.40 on April 10, 2003. Referred to that closing notation, the proposed dividend represents a return of 7.5 %. end of message, (c)DGAP 15.04.2003 ——————————————————————————– WKN: 785602; ISIN: DE0007856023; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und Stuttgart; Freiverkehr in Berlin-Bremen 151513 Apr 03