21.07.2016
ElringKlinger AG DE0007856023
DGAP-Adhoc: ElringKlinger's preliminary quarterly results point to sustained growth without advancement in earnings
ElringKlinger AG / Key word(s): Preliminary Results/Change in Forecast
21.07.2016 17:33
Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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ElringKlinger's preliminary quarterly results point to sustained growth
without advancement in earnings
- Revenue for Q2 2016 up 2.9% at EUR 390.9 million
- EBIT before purchase price allocation down by EUR 3.4 million to EUR
36.2 million
- Adjustment to guidance for 2016: EBIT before purchase price allocation
expected to be EUR 140 to 150 million; revenue target unchanged at 5 to
7% organic growth
Dettingen/Erms (Germany), July 21, 2016 +++ Based on preliminary figures
for the second quarter of 2016, organic revenue growth for the
ElringKlinger Group stood at 5.6%, which is within the target corridor of 5
to 7%. However, as earnings failed to advance at the level originally
planned and anticipated by the company, the guidance figure for EBIT before
purchase price allocation in respect of the current financial year has been
revised to a range of EUR 140 to 150 million.
Revenue continues to show solid growth
On the back of EUR 379.7 million in the same quarter a year ago, the Group
managed to lift revenue by 2.9% to EUR 390.9 million in the second quarter
of 2016. Adjusted for foreign exchange movements, growth was as high as EUR
22.9 million or 6.0%. This figure includes revenue of EUR 1.6 million
contributed by COdiNOx Beheer B.V., a subsidiary that has been fully
consolidated effective from April 11, 2016. Taking into account the
aforementioned acquisition and FX effects, organic growth in the second
quarter amounted to EUR 21.3 million or 5.6%.
Q2 earnings without any significant impetus
At EUR 36.2 million, second-quarter EBIT before purchase price allocation
was down by EUR 3.4 million on the figure recorded in the same quarter a
year ago. This was attributable primarily to capacity constraints
afflicting a business unit within the Original Equipment segment; its
substantial fixed costs at an operational level offset the earnings
contribution associated with additional revenue. At EUR 4 million, the
additional costs - mainly for unscheduled freight consignments and external
quality control - in the second quarter were just slightly higher than the
figure of around EUR 3 million originally budgeted. At the same time,
however, the scale of improvements seen at the Swiss facility during the
first quarter was not as pronounced as expected in the subsequent period.
This was due to the fact that staffing levels had had to be increased
slightly in order to safeguard output volumes, while it had also not been
possible to scale back external storage resources required for logistics.
Migration of part of the manufacturing operations to Hungary proved slower
in the second quarter than originally planned, as it took much longer than
anticipated in some cases to secure the customer approvals required in the
automotive industry with regard to such relocations; in some cases, these
authorizations are still outstanding. While quality control activities were
reintegrated as planned, these measures failed to provide the rapid boost
to earnings that had previously been expected. With this in mind, the
Management Board has responded to the changed situation and will step up
its measures further within this area. This will mainly involve
intensifying the company's dialogue with customers to ensure faster
nearshoring and more efficient internal and external quality control. In
turn, this will provide the basis for streamlining personnel costs.
Adjustment of earnings expectations for current financial year
In terms of earnings performance, the Group has fallen short of its own
expectations in the first two quarters. Against this backdrop,
ElringKlinger anticipates, at most, a slight year-on-year improvement in
earnings for the transitional year of 2016 and has now set a guidance EBIT,
before purchase price allocation, of EUR 140 to 150 million (previously:
EUR 160 to 170 million). As regards revenue, the Group has reaffirmed its
outlook of organic growth in the range of 5 to 7%.
"Naturally, we are disappointed at our loss in forward momentum with regard
to earnings," said Dr. Stefan Wolf, Chief Executive Officer of
ElringKlinger AG. "At the same time, we are confident that partial
relocation to a more cost-effective site and optimization of the facility
in Switzerland are incisive adjustments when it comes to ensuring the
sustained development of the entire unit in question," as Dr. Wolf went on
to explain.
ElringKlinger's medium-term outlook remains unchanged: the Group will be
looking to achieve annual revenue growth of 5 to 7% at an organic level and
an EBIT margin of 13 to 15% before purchase price allocation.
The full financial report for the second quarter and first half of 2016
will be published on Thursday, August 4, 2016.
In connection with this announcement, a conference call will be arranged
with CEO Dr. Stefan Wolf and CFO Thomas Jessulat on Friday, July 22, 2016,
at 10:00 hrs (CET) for the purpose of elucidating the points presented
above.
EUR million H1 2016 H1 2015 Dif. abs. Dif. rel.
Revenue 776.1 751.1 +25.0 +3.3%
of which FX -23.4 -3.1%
effects
of which +6.5 +0.9%
acquisitions
of which organic +41.9 +5.6%
Adjusted EBIT 68.2 76.3 -8.1 -10.6%
before
purchase price
allocation
Adjusted EBIT 8.8% 10.2% -1.4PP -
margin before
purchase price
allocation (in %)
Purchase price 2.3 2.6 -0.3 -
allocation
EBIT 66.0 73.7 -7.7 -10.4%
EUR million Q2 2016 Q2 2015 Dif. abs. Dif. rel.
Revenue 390.9 379.7 +11.2 +2.9%
of which FX -11.7 -3.1%
effects
of which +1.6 +0.4%
acquisitions
of which organic +21.3 +5.6%
Adjusted EBIT 36.2 39.6 -3.4 -8.6%
before
purchase price
allocation
Adjusted EBIT 9.3% 10.4% -1.1PP -
margin before
purchase price
allocation (in %)
Purchase price 1.0 1.3 -0.3 -
allocation
EBIT 35.2 38.3 -3.1 -8.1%
For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
Germany
Phone: +49 7123 724-88335
Fax: +49 7123 724-85 8335
E-mail: [email protected]
About ElringKlinger AG
ElringKlinger has focused its efforts on developing forward-looking green
technologies. These are designed not only to reduce CO2 emissions but also
to scale back the level of harmful nitrogen oxides, hydrocarbons, and soot
particles. ElringKlinger is one of the few automotive suppliers worldwide
with the capabilities of developing and producing high-tech components for
all types of drive system - whether for downsized combustion engines or for
electric vehicles driven by batteries or fuel cells. Drawing on its
expertise in lightweight engineering, ElringKlinger can make a decisive
contribution to efforts aimed at further reducing vehicle weight and thus
fuel consumption. The company's portfolio centered around emissions
reduction also includes particulate filters and end-to-end exhaust gas
purification systems used in ships, commercial vehicles, construction
machinery, and stationary engines as well as in power stations. This is
complemented by products made of the high-performance plastic PTFE supplied
by ElringKlinger Kunststofftechnik, which are marketed to a wide range of
industries - also to those operating beyond the vehicle manufacturing
sector. Applying its abilities as an innovator, ElringKlinger is committed
to sustainable mobility and earnings-driven growth. These efforts are
supported by a dedicated workforce of more than 8,200 people at 45
ElringKlinger Group locations around the globe.
21.07.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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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: [email protected]
Internet: www.elringklinger.de
ISIN: DE0007856023
WKN: 785602
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart;
Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
Hanover, Munich, Tradegate Exchange; Terminbörse EUREX
End of Announcement DGAP News-Service
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