DGAP-News: ElringKlinger sees third-quarter sales rise by 5% despite adverse foreign exchange effects - Operating result outpaces revenue growth
(firmenpresse) - DGAP-News: ElringKlinger AG / Key word(s): Interim Report/Quarter
Results
ElringKlinger sees third-quarter sales rise by 5% despite adverse
foreign exchange effects - Operating result outpaces revenue growth
06.11.2013 / 07:47
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Dettingen/Erms, November 6, 2013 +++ The ElringKlinger Group has
confirmed its preliminary financial results for the third quarter of 2013,
as announced on 25 October 2013. Despite the severe malaise afflicting car
markets in Europe, the company succeeded in driving sales forward by 5.1%
to EUR 294.0 (279.8) million in the third quarter of 2013. The appreciation
of the euro and the associated effects of currency translation dampened
revenue growth, which would have reached 8.6% if exchange rates had
remained stable. Expanding by 5.8% to EUR 38.6 (36.5) million,
ElringKlinger's operating result moved forward at a faster pace compared to
sales revenue. Earnings before interest and taxes (EBIT), which - unlike
the operating result - include the effects of foreign exchange gains and
losses, were impacted by foreign exchange losses of EUR 3.5 million in the
third quarter, together with a non-recurring exceptional charge of EUR 1.5
million, and stood at EUR 35.1 (36.0) million.
ElringKlinger outperforms the market - Headwind from strong euro
In spite of difficult market conditions in Europe, the ElringKlinger Group
again managed to outpace the global vehicle markets by a considerable
margin during the first nine months of 2013.
Benefiting from new product launches, more dynamic business in North
America and continued buoyancy in overseas demand from Asia, ElringKlinger
was able to compensate for the severe weakness facing Western European
automotive markets. Group sales revenue rose by 4.1% to EUR 884.1 (849.6)
million. In this context, Group revenue was visibly diluted by the
direction taken by the US dollar, the Brazilian real and several Asian
currencies. ElringKlinger generates around 40% of its sales revenue outside
the eurozone. The negative effect of translating revenues into the Group
currency - the euro - was equivalent to EUR 16.4 million in the first nine
months of 2013. If exchange rates had remained unchanged, revenue growth
within the Group would have amounted to 6.0% in the nine-month period. The
Group saw an acceleration in the rate of growth during the third quarter,
despite the unfavorable effects of foreign currency translation. It managed
to increase its sales revenue by 5.1% to EUR 294.0 (279.8) million in the
third quarter of 2013. If foreign exchange rates had remained unchanged,
sales revenue would have expanded by 8.6% to EUR 303.8 million.
Successful integration of acquired companies
Sales generated by exhaust specialist Hug - ElringKlinger acquired this
company in 2011 and now holds a 93.7% interest in it - rose to EUR 13.1
(7.2) million in the third quarter, fueled in particular by strong demand
within the US retrofit market for trucks and buses as well as new projects
relating to inland shipping and exhaust gas purification for stationary,
gas-fired power plants. Earnings before taxes grew from minus EUR 0.7
million to EUR 2.2 million.
Despite the continued weakness of the French automotive market with regard
to the number of cars sold and a concomitant downturn in sales at thesite
operated by the former Freudenberg company ElringKlinger Meillor SAS,
Nantiat, earnings before taxes generated by the former Freudenberg plants
improved to EUR 0.9 (0.5) million, with revenue stagnating at EUR 11.5
million.
Operating result up by 5.8% in third quarter
As regards its operating result for the first nine months of 2013, the
ElringKlinger Group succeeded in matching the record set for the same
period a year ago, at EUR 113.1 (113.1) million. In this context, the
Group's operating result for the third quarter of 2013 was dented by a
non-recurring exceptional expense of EUR 1.5 million associated with market
penetration efforts in the Aftermarket segment. Additionally, the Group
incurred significant start-up costs in the area of E-Mobility, where
several large-scale projects were about to be taken forward to serial
production level. Despite these factors, the Group's operating result
improved at a faster rate than revenue in the third quarter, up 5.8% to EUR
38.6 (36.5) million. The operating margin in the third quarter of 2013
edged up slightly year on year to 13.1% (13.0%).
Earnings before interest and taxes (EBIT), which unlike the operating
result include foreign exchange gains and losses, were impacted by negative
foreign exchange effects equivalent to EUR 2.9 million in total over the
course of the nine-month period. Thus, EBIT stood at EUR 110.2 (111.6)
million, which was 1.3% down on last year's figure. The strength of the
euro was particularly evident in the third quarter of 2013, when foreign
exchange losses of EUR 3.5 (-0.5) million had a dilutive effect on
earnings. Consequently, at EUR 35.1 (36.0) million, EBIT was weaker than
the Group's operating result.
Attributable to the Group's financing activities, foreign exchange losses
were also the key factor behind the visible year-on-year increase in net
finance costs in the third quarter of 2013. The latter rose to EUR 6.3
(3.6) million. The foreign exchange effects also resulted in higher net
finance costs for the first nine months of the financial year, up at EUR
11.5 (10.8) million. The ElringKlinger Group thus saw earnings before taxes
contract marginally to EUR 101.6 (102.2) million. In the third quarter of
2013, earnings before taxes were slightly lower year on year, at EUR 32.3
(33.0) million - also as a result of foreign currency effects.
As a result, net income after non-controlling interests remained largely
unchanged at EUR 72.5 (72.7) million for the first nine months of 2013. At
30.5% (26.0%), the income tax rate in the third quarter of 2013 was
markedly higher than in the previous year, as a result of which net income
after non-controlling interests contracted slightly to EUR 22.5 (23.3)
million. Basic and diluted earnings per share totaled EUR 1.14 (1.15) in
the first nine months of 2013. In the third quarter of 2013, earnings per
share stood at EUR 0.36 (0.37).
Expansive order intake
Order intake remained solid at Group level. Orders placed by customers
increased by 11.5% to EUR 298.2 (267.5) million in the third quarter of
2013. Order backlog for the Group rose to EUR 578.1 (472.8) million as at
September 30, 2013. This corresponds to a year-on-year increase of 22.3%.
Revenue and earnings growth also forecast for the financial year as a whole
The Group anticipates that global automobile production will expand only
slightly in 2013 as a whole. While the Western European car market appears
to have reached its nadir, there are as yet no signs of a fundamental
recovery. The Group's operating margin for 2013 will still be reduced to
some extent by the below-average aggregate profit margin of the entities
acquired from Freudenberg. However, the dilutive effects are expected to be
less pronounced compared to the previous year. At the same time, the
E-Mobility division is facing substantial up-front expenses and start-up
costs. Several serial production projects are scheduled to commence within
this area at the end of the year.
Against this background, the ElringKlinger Group plans to increase sales
revenue by 5 to 7% in2013 in terms of organic growth. Consequently,
ElringKlinger anticipates that EBIT adjusted for non-recurring items will
grow at a more pronounced percentage rate compared to sales revenue in
2013, taking the estimated figure to between EUR 150 and 155 million (EUR
136.0 million in 2012). Looking forward to the remainder of the financial
year, revenue and EBIT growth may be positioned at the lower end of these
ranges if the euro continues to appreciate significantly against other
currencies that are of relevance to the Group.
The full report for the third quarter and the first nine months of 2013 is
available online at http://www.elringklinger.de/investor/2013-Q3-en.pdf
End of Corporate News
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06.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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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(at)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
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238115 06.11.2013
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Datum: 06.11.2013 - 07:47 Uhr
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