30.03.2017
ElringKlinger AG DE0007856023
DGAP-News: ElringKlinger concludes 2016 financial year with strong final quarter
DGAP-News: ElringKlinger AG / Key word(s): Final Results
ElringKlinger concludes 2016 financial year with strong final quarter
30.03.2017 / 09:26
The issuer is solely responsible for the content of this announcement.
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ElringKlinger concludes 2016 financial year with strong final quarter
- Revenue up by 3.3% to EUR 1,557 million and by 4.7% in organic terms
- EBIT before purchase price allocation on a par with previous year at EUR
140 million
- Proposed dividend of EUR 0.50 per share corresponds to payout ratio of 40%
- Marked improvement in operating free cash flow
- Guidance for 2017: organic revenue growth of 2 to 4 percentage points
above global market growth, EBIT margin before purchase price allocation
around 9 to 10%
Dettingen/Erms (Germany), March 30, 2017 +++ The ElringKlinger Group
completed fiscal 2016 with a powerful sprint to the finish. Sales revenue
for the annual period was expanded by 3.3% year on year, taking the figure
to EUR 1,557.4 (1,507.3) million. This was fueled by the Group's performance
in the fourth quarter, which saw sales revenue grow by 4.4%.
Had foreign exchange rates remained unchanged, growth would have been as
much as 5.5% or EUR 83.5 million. Accounting for portfolio effects - e.g.,
by the acquisition of Hug Engineering B.V. or the asset deal relating to
Maier Formenbau GmbH - totaling EUR 12.4 million, organic growth stood at
EUR 71.1 million or 4.7%. Global automobile production expanded by around 3%
over the same period.
Growth primarily in Asia and Europe (excluding Germany)
ElringKlinger saw revenue improve in almost all sales regions over the
course of 2016. While business in the home market of Germany picked up only
slightly, sales performance in the rest of Europe proved much more
favorable. Here, revenue increased by EUR 18.8 million or 4.0% to EUR 489.1
(470.3) million, as a result of which this region accounted for 31% (31%) of
total sales. Growth generated in the Asia-Pacific region was much more
pronounced, with revenue expanding by EUR 28.3 million or 10.5% to EUR 299.0
million. As a result, this region now accounts for 19% (18%) of total sales
revenue generated by the Group.
Earnings dampened by capacity constraints in Swiss entity
The Group recorded EBIT of EUR 140.4 (140.4) million before purchase price
allocation in 2016 as a whole, which was on a par with the previous year.
While growth in revenue had a favorable impact on earnings, these positive
contributions to profit were offset by charges relating to the Swiss
subsidiary affected by capacity constraints. Trailing additional costs of
around EUR 11 million in the first half of the year, together with a
fundamentally higher level of fixed operating costs and the delayed impact
of optimization measures due to the absence of customer approvals for the
migration of manufacturing operations exerted downward pressure on the
Group's earnings performance. Against this backdrop, figures for the first
three quarters of 2016 in each case lagged behind those recorded in the
previous year. It took until the fourth quarter for anticipated benefits to
materialize, with EBIT before purchase price allocation rising by EUR 12.0
million, or 44%, year on year to EUR 39.5 (27.5) million. This improvement
in performance was attributable primarily to measures aimed at remedying
capacity constraints. In parallel, solid market conditions and the sale of
real estate for a figure at the very low end of the single-digit million
euro range proved advantageous.
The following two factors in particular had an impact on the rest of the
income statement: First, a year-on-year decline in the Group's net foreign
exchange gain and an increase in interest expenses were reflected in its net
finance result. Secondly, various tax-related effects translated into higher
income taxes in the fourth quarter. As a result, the tax rate stood at 46%
in the fourth quarter and at 33% for the annual period as a whole. Despite
EBIT being on a par with the prior-year figure, the Group thus saw its net
income (after non-controlling interests) fall to EUR 78.6 (91.6) million.
Correspondingly, earnings per share stood at EUR 1.24, down on the
prior-year figure of EUR 1.45.
High payout ratio in line with long-term dividend policy
Against the background of lower earnings per share, the Management Board and
Supervisory Board will submit a joint proposal to the Annual General Meeting
on May 16, 2017, for a dividend payment of EUR 0.50 per share. On this
basis, the dividend ratio has risen to 40% (38%) and thus lies at the upper
range of the long-term policy adopted by the Group, which stipulates that
around 30 to 40% of earnings per share should be distributed to
shareholders.
Financial position remains strong
ElringKlinger's balance sheet continues to be robust. At the end of the
financial year just ended the Group's equity ratio stood at 47.2% (48.5%),
which was still well within the upper half of the target range of 40 to 50%
of total assets.
Investments scaled back, operating free cash flow improved markedly
Once again, the Group carried out focused investments in its future growth.
At EUR 171.3 million, representing 11.0% of revenue, capital expenditure
directed at property, plant, and equipment as well as real estate was
slightly lower than in the previous year (EUR 176.1 million or 11.7%). Among
the major projects in Germany was a new logistics center at the Group
headquarters in Dettingen/Erms, construction work on which commenced in July
2016. Additionally, relatively substantial investments were made at the
sites in Gelting, Ergenzingen, Langenzenn, and Bietigheim-Bissingen. At an
international level, alongside more substantial measures in Switzerland and
the United States, key investments included the start of construction work
on a facility in Kecskemét, Hungary, as well as new plants in Turkey and
China. Additionally, the two US sites in Warren and Roseville were brought
together at a new plant in neighboring Southfield in 2016.
Measures targeted at net working capital proved beneficial, with this key
financial indicator remaining largely unchanged at EUR 524.6 (523.2) million
despite growth in revenue. Overall, this led to a visible improvement in
operating free cash flow; it stood at EUR -3.8 million, compared to EUR
-65.2 million in the previous year.
Outlook: ElringKlinger looks forward with confidence to 2017
ElringKlinger anticipates that demand within the area of personal mobility
will continue to grow irrespective of the type of drive system deployed.
Technology surrounding combustion engines will still be of relevance in the
short to medium term. In the medium to long term, however, the key impetus
is expected to come entirely from new drive technologies. As CEO Dr. Stefan
Wolf explains, "Building on a broad product portfolio and diversified
customer base, ElringKlinger is very well prepared for this process of
transition. Thanks to gaskets and near-engine shielding parts and plastic
modules, we have gained a strong foothold when it comes to conventional
combustion engine technology. At the same time, innovative structural
components as well as parts used in alternative drive systems are among the
key contributors to growth."
Overall, the Group expects to be able to exceed global market growth by 2 to
4 percentage points per annum in the short to medium term. For 2017,
industry experts have forecast market growth of 1 to 2%. In the medium term,
the market is likely to expand by an annual average of 2% at a global level.
The growth in revenue targeted by the Group will also translate into
improved earnings in 2017. Furthermore, operational measures - primarily the
transfer of additional sections of production from Switzerland to Hungary -
will have a positive impact on the Group's earnings situation. Against this
background, the Group anticipates that its EBIT margin before purchase price
allocation will stand at around 9 to 10%. The figure targeted for the medium
term is around 13%.
EUR million FY 2016 FY 2015 ∆ abs. ∆ rel.
Order intake 1,693.7 1,615.3 +78.4 +4.9%
Order backlog 932.5 796.2 +136.3 +17.1%
Revenue 1,557.4 1,507.3 +50.1 +3.3%
of which FX effects -33.4 -2.2%
of which acquisitions +12.4 +0.8%
of which organic +71.1 +4.7%
EBITDA 231.2 222.8 +8.4 +3.8%
EBIT before purchase price allocation 140.4 140.4 +0.0 +0%
EBIT margin before 9.0% 9.3% -0.3PP -
purchase price allocation (in %)
Purchase price allocation 4.8 5.2 -0.4 -
EBIT 135.6 135.2 +0.4 +0.3%
Net finance result -11.5 -6.5 -5.0 -76.9%
EBT 124.1 128.8 -4.7 -3.8%
Income taxes 41.5 33.0 +8.5 +25.8%
Effective tax rate (in %) 33.4 25.6 +7.8PP -
Net income (after 78.6 91.6 -13.0 -14.2%
non-controlling interests)
Earnings per share (in EUR) 1.24 1.45 -0.21 -14.5%
Dividend per share (in EUR) 0.50* 0.55 -0.05 -9.1%
Investments (in property, 171.3 176.1 -4.8 -2.7%
plant, and equipment)
Operating free cash flow -3.8 -65.2 +61.4 +94.2%
ROCE (in %) 8.7 9.5 -0.8PP -
Net working capital 524.6 523.2 +1.4 +0.3%
Equity ratio (in %) 47.2 48.5 -1.3PP -
Net financial liabilities 538.8 486.8 +52.0 +10.7%
Employees (as of Dec. 31) 8,591 7,912 +679 +8.6%
EUR million Q4 2016 Q4 2015 ∆ abs. ∆ rel.
Order intake 444.9 429.6 +15.3 +3.6%
Order backlog 932.5 796.2 +136.3 +17.1%
Revenue 407.2 390.0 +17.2 +4.4%
of which FX effects -5.9 -1.5%
of which acquisitions +3.1 +0.8%
of which organic +20.0 +5.1%
EBITDA 64.5 50.2 +14.3 +28.5%
EBIT before purchase price allocation 39.5 27.5 +12.0 +43.6%
EBIT margin before 9.7% 7.1% +2.6PP -
purchase price allocation (in %)
Purchase price allocation 1.1 1.3 -0.2 -
EBIT 38.4 26.2 +12.2 +46.6%
Net finance result 1.0 2.1 -1.1 -52.4%
EBT 39.4 28.3 +11.1 +39.2%
Income taxes 18.1 -4.5 +22.6 >100%
Effective tax rate (in %) 45.9 15.7 +30.2PP -
Net income (after 19.7 22.4 -2.7 -12.1%
non-controlling interests)
Earnings per share (in EUR) 0.31 0.35 -0.04 -11.4%
* Proposal to 2017 AGM
For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations and Corporate PR
Max-Eyth-Straße 2
72581 Dettingen/Erms
Germany
Phone: +49 7123 724-88335 [IMAGE]
Fax: +49 7123 724-85 8335 [IMAGE]
E-mail: [email protected]
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 8,600
people at 47 ElringKlinger Group locations around the globe.
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30.03.2017 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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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
End of News DGAP News Service
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559979 30.03.2017
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