AI assistant
ElringKlinger AG — Earnings Release 2015
Aug 5, 2015
138_rns_2015-08-05_30a10db9-3041-411c-9913-dda7d03023ea.html
Earnings Release
Open in viewerOpens in your device viewer
News Details
Corporate | 5 August 2015 07:31
ElringKlinger with sustained surge in revenue in Q2 2015
DGAP-News: ElringKlinger AG / Key word(s): Half Year Results
2015-08-05 / 07:31
Dettingen/Erms (Germany), August 5, 2015 +++ The ElringKlinger Group
recorded revenue growth of 13.9% in the second quarter of 2015, taking the
figure to EUR 379.7 (333.5) million. Organically, i.e. excluding the
effects of acquisitions and foreign exchange gains, revenue expanded by
4.5%. Thus, the ElringKlinger Group yet again managed to outpace the
international vehicle markets when it came to the rate of growth achieved.
Adjusted earnings before interest and taxes (EBIT), excluding purchase
price allocations, totaled EUR 39.6 (42.3) million in the second quarter of
2015. Net income after non-controlling interests stood at EUR 21.0 (28.5)
million.
Dynamic revenue growth continues
ElringKlinger saw its sales revenue expand further against the backdrop of
sustained consumer demand in the United States and an increasingly dynamic
upturn in Europe's vehicle markets. Additionally, the Group benefited from
several new product rollouts as well as significant structural growth in
many of the product groups targeted at CO2 reduction. At an organic level,
i.e. without the effects of consolidation and currency translation, revenue
growth totaled 4.5% in the second quarter of 2015. The first-time
consolidation of former M&W Manufacturing Company, Inc., Warren/USA (M&W),
contributed additional revenue of EUR 8.8 million. As a result of the
direction taken by the euro exchange rate, particularly in relation to the
US dollar, Swiss franc and some of the Asian currencies, Group revenue was
boosted by a further EUR 22.4 million in the second quarter of 2015. Total
revenue 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-time
inclusion of M&W, while the direction taken by foreign exchange rates
boosted the figure by EUR 46.5 million. Organic revenue growth in the first
half 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 price
allocations amounted to EUR 39.6 (42.3) million, up EUR 2.9 million on the
figure posted for the first quarter (EUR 36.7 million). Compared to the
preceding quarter, the EBIT margin before purchase price allocation was up
0.5 percentage points at 10.4%. Adjusted Group EBIT before purchase price
allocation stood at EUR 76.3 (85.3) million in the first half of 2015. This
corresponds 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 high
levels of capacity utilization over the course of the second quarter.
Individual divisions within this segment again recorded a sustained surge
in demand. This necessitated the introduction of extra shifts and
additional freight movements, thus pushing the cost base up by around EUR 5
million in the second quarter of 2015. At the same time, the sudden
appreciation of the Swiss franc against the euro had a dampening effect.
ElringKlinger has already initiated measures aimed at optimizing its
earnings situation and is anticipating a gradual improvement in performance
by the end of the year.
What is more, the EBIT margin in the second quarter of 2015 continued to be
diluted by the most recent corporate acquisitions (around 0.7 percentage
points) as well as the persistently weak performance of the E-Mobility
business (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 were
substantially lower in the second quarter, taking the figure into negative
territory at EUR -3.4 (1.2) million. In total, net finance costs stood at
EUR 6.5 (2.1) million in the second quarter of 2015. In the first half, net
finance costs amounted to EUR 3.0 (4.7) million. As a result, earnings
before taxes totaled to EUR 31.8 (39.5) million in the second quarter and
EUR 70.7 (78.9) million in the first half.
Net income at EUR 22 million in Q2 - Earnings per share at EUR 0.33
At EUR 9.8 (9.7) million, tax expenses in the second quarter of 2015
remained largely unchanged on the figure posted for the same period a year
ago. The Group tax rate rose to 30.8% (24.6%) as a result of smaller
earnings contributions from countries with low tax rates. In the first six
months tax expenses amounted to EUR 19.5 (19.9) million; the tax rate was
27.6% (25.2%).
Net income stood at EUR 22.0 (29.7) million in the second quarter and at
EUR 51.2 (59.0) million in the first half of 2015. After non-controlling
interests, net income was EUR 21.0 (28.5) million. In the first six months
of 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 at
EUR 0.33 (0.45). In the first half of 2015, earnings per share stood at EUR
0.78 (0.89).
Order intake rises by 15% from a high base
On the back of a strong first quarter, order intake expanded at an
encouraging rate in the second quarter of 2015. Compared to the same period
a year ago, it rose by 14.5% to EUR 435.1 (380.0) million. Eliminating
incoming orders attributable to the acquisition of the entity formally
trading 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 will
expand 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, the
European markets should develop better than previously expected.
Against this backdrop, the ElringKlinger Group is targeting organic revenue
growth of 5 to 7%. Additionally, the consolidation of ElringKlinger
Automotive Manufacturing Inc. (formerly M&W) will contribute around EUR 30
million to Group revenue in the financial year as a whole.
The special charges outlined above, earnings contributions from acquired
entities that are as yet below the Group average and sluggish demand in the
E-Mobility division will have a dampening effect on ElringKlinger Group
earnings in 2015. Based on the assumption that earnings improve in the
second half of the year as a result of optimization measures already
initiated, EBIT before purchase price allocation, adjusted for
non-recurring items, is expected to be around EUR 165 million.
Key financials for Q2 and H1 2015
in EUR m Q2 2015 Q2 2014 Change H1 2015 H1 2014 Change
Order 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%
EBIT
Adjusted EBIT 39.6 42.3 -6.4% 76.3 85.3 -10.6%
before purchase
price allocations
Earnings 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 of
ElringKlinger AG
Earnings 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 be
accessed at http://www.elringklinger.de/investor/2015-Q2-en.pdf
__________________________________________________________________________
For further information, please contact:
ElringKlinger AG
Sabrina Haufler
Corporate Communications / Investor Relations
Max-Eyth-Straße 2
72581 Dettingen
Germany
Phone +49 7123 724-137
Fax +49 7123 724-85137
Email [email protected]
2015-08-05 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.
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: [email protected]
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