30.03.2016
ElringKlinger AG DE0007856023
DGAP-News: Publication of 2015 annual report: ElringKlinger maintains momentum of growth
DGAP-News: ElringKlinger AG / Key word(s): Final Results
Publication of 2015 annual report: ElringKlinger maintains momentum of
growth
30.03.2016 / 07:27
The issuer is solely responsible for the content of this announcement.
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- Revenue up by 14% to over EUR 1.5 billion; organic revenue growth of 6%
- EBIT before purchase price allocation at EUR 140 million, which
includes exceptional charges of EUR 34 million due to capacity
constraints
- Proposal for stable dividend of EUR 0.55 per share despite lower
earnings
- Guidance 2016: organic revenue growth of 5 to 7%, EBIT before purchase
price allocation of EUR 160 to 170 million
Dettingen/Erms (Germany), March 30, 2016 +++ The ElringKlinger Group has
maintained its trajectory of growth, with revenue increasing by 13.7% to
EUR 1,507.3 (1,325.8) million in the 2015 financial year. In doing so, the
company managed to breach the threshold of EUR 1.5 billion for the first
time. Revenue was influenced by favorable foreign exchange effects
equivalent to EUR 69.6 million, primarily due to the weakness of the euro
against the US dollar, the Chinese yuan, and the Swiss franc. Eliminating
these effects and taking into account the revenue contribution made by US
acquiree M&W Automotive Manufacturing Co., Inc. of EUR 32.2 million, the
Group generated organic revenue growth of EUR 79.7 million, which
corresponds to an increase of 6.0%. Over the same period of time global
growth in automobile production stood at just 1 to 2%.
NAFTA and Asia as growth drivers
ElringKlinger recorded strong growth both in its home market and at a
global level in all the key regions served by the Group. In Germany, growth
stood at 6.0%, while revenue in the Rest of Europe grew by EUR 36.5 million
or 8.4% (FX-adjusted: 5.0%). In the NAFTA region, the Group saw revenue
increase by EUR 76.0 million or 34.5% to EUR 296.4 million. Eliminating the
M&W acquisition and foreign exchange effects, growth in this region still
stood at a very solid 8.1%. With revenue expanding by EUR 45.1 million or
20.0% (FX-adjusted: 7.9%) to EUR 270.7 million, the Asia-Pacific region
remains a growth driver. An order for lightweight shielding systems placed
by a Japanese car maker represents a milestone for ElringKlinger within
this market; the start of series production is scheduled for 2017.
Earnings impacted by capacity constraints
Essentially, the global upturn seen within the automotive industry also
produced benefits for ElringKlinger's earnings performance. However,
exceptional expense items connected with capacity bottlenecks in the
Original Equipment segment had an adverse effect. Unexpectedly strong
demand within this area necessitated, among other things, extra shifts and
unscheduled consignments. The additional costs of EUR 34 million incurred
as a result of these capacity constraints diluted adjusted Group EBIT
before purchase price allocation by 13.5% or EUR 21.9 million, taking the
figure to EUR 140.4 million. As a result, the adjusted EBIT margin (before
purchase price allocation) fell by 2.9 percentage points to 9.3%.
Correspondingly, net income for the period was lower year on year at EUR
95.8 million, as were earnings per share at EUR 1.45 (EUR 110.6 million and
EUR 1.67 respectively).
Dividend payment remains stable
The Management Board and Supervisory Board jointly propose to the Annual
General Meeting, scheduled for May 31, 2016, a dividend payment of EUR 0.55
per share. Therefore, the dividend will remain unchanged year on year
despite the downturn in earnings; the dividend ratio, calculated on the
basis of earnings per share, will improve from 33 to 38%.
High level of investment as a basis for future growth
In order to sustain the Group's momentum of growth, ElringKlinger channeled
11.7 (11.1)% of revenue - i.e., EUR 176.1 (147.0) million - into real
estate and property, plant, and equipment. ElringKlinger is committed to
Germany as a business location, where it directed investment spending
primarily at its sites in Dettingen/Erms, Lenningen, Rottenburg,
Bietigheim-Bissingen, Gelting, and Idstein. In addition to modernizing and
expanding its domestic plants, the Group laid the foundations at an
international level to ensure that its solid order intake can be translated
into profitable growth. To improve productivity, ElringKlinger completed
targeted purchases of new machinery and equipment at a global level, in
addition to building new production facilities in China, India, and Turkey.
Capacity constraints in the Original Equipment segment were seen as an
opportunity to initiate measures aimed at establishing a new production
site in Hungary and thus raising capacity levels within the affected unit.
Very solid equity ratio
ElringKlinger's financial position was again robust in the fiscal year just
ended. At 48.5 (49.7)%, the Group's equity ratio remained at a very solid
level, despite strong growth.
Perfectly positioned for the future
The megatrend of "powertrain efficiency" will continue to drive the
automotive industry in the coming years, not least in view of ever-stricter
emissions standards. As Dr. Stefan Wolf, CEO of ElringKlinger AG, puts it:
"With a product portfolio consistently tailored to efficient mobility,
ElringKlinger is very well positioned and will continue to benefit more
than others from growth in the industry. We will draw on our technological
knowledge and process expertise for the purpose of developing and rolling
out a range of other innovative solutions in the field of drive technology
and lightweight construction."
Outlook: continued revenue growth, visible improvement in earnings
Based on the assumption of growth of around 2% in global automobile
production, the Group anticipates an expansion in organic revenue (i.e.,
adjusted for acquisitions and foreign exchange effects) by 5 to 7% for the
current 2016 financial year.
Revenue growth will contribute to improved earnings in 2016. What is more,
measures introduced to address the issue of capacity constraints are
already showing positive effects, although the first quarter is likely to
produce trailing exceptional costs of EUR 10 million. Overall,
ElringKlinger anticipates that EBIT before purchase price allocation will
stand at EUR 160 to 170 million in 2016.
In the medium term, the Group is planning to achieve annual organic revenue
growth of 5 to 7%. In terms of earnings, ElringKlinger will be targeting an
EBIT margin (before purchase price allocation) of 13 to 15%.
FY FY
EUR million 2015 2014 Dif. abs. Dif. rel.
Order intake 1,615.3 1,418.6 + 196.7 + 13.9%
Order backlog 796.2 688.2 + 108.0 + 15.7%
Revenue 1,507.3 1,325.8 + 181.5 + 13.7%
of which
FX effects + 69.6 + 5.3%
of which
acquisitions + 32.2 + 2.4%
of which
organic + 79.7 + 6.0%
Adjusted EBIT before
purchase price 140.4 162.3 - 21.9 - 13.5%
allocation
Adjusted EBIT
margin before 9.3% 12.2% - 2.9 pp -
purchase price
allocation (in %)
Purchase price
allocation 5.2 3.4 + 1.8 -
Non-recurring items - 4.9 - 4.9 -
EBIT 135.2 154.0 - 18.8 - 12.2%
Net finance cost/
income - 6.5 - 0.9 - 5.6 > - 100%
EBT 128.8 153.1 - 24.3 - 15.9%
Taxes on income - 33.0 - 42.5 + 9.5 + 22.4%
Effective tax rate
(in %) 25.6 27.8 - 2.2 pp -
Net income
(after non-controlling 91.6 105.7 - 14.1 - 13.3%
interests)
Earnings per share
(in EUR) 1.45 1.67 - 0.22 - 13.2%
Dividend per share
(in EUR) 0.55* 0.55 +/- 0% +/- 0%
Capital expenditure 189.8 163.1 + 26.7 - 16.4%
Operating free
cash flow - 65.2 - 12.4 - 52.8 > - 100%
ROCE (in %) 9.5 12.4 - 2.9 pp -
Net working capital 523.2 466.4 + 56.8 + 12.2%
Equity ration (in %) 48.5 49.7 - 1.2 pp -
Net financial
liabilites 486.8 348.3 + 138.5 + 39.8%
Employees
(as of Dec. 31) 7,912 7,255 + 657 + 9.1%
* Proposal to the Annual General Meeting 2016
Q4 Q4
EUR million 2015 2014 Dif. abs. Dif. rel.
Order intake 429.6 377.1 + 52.5 + 13.9%
Order backlog 796.2 688.2 + 108.0 + 15.7%
Revenue 390.0 340.9 + 49.1 + 14.4%
of which
forex effects + 12.7 + 3.7%
of which
acquisitions + 9.1 + 2.7%
of which
organic + 27.3 + 8.0%
Adjusted EBIT before
purchase price 27.5 34.9 - 7.4 - 21.2%
allocation
Adjusted EBIT
margin before 7.1% 10.2% - 3.1 pp -
purchase price
allocation (in %)
Purchase price
allocation 1.3 0.8 + 0.5 -
Non-recurring items - 4.9 - 4.9 -
EBIT 26.2 29.2 - 3.0 - 10.3%
Net finance cost/
income 2.1 0.1 + 2.0 > 100%
EBT 28.3 29.3 - 1.0 - 3.4%
Taxes on income - 4.5 - 11.5 + 7.0 + 60.9%
Effective tax rate
(in %) 15.7 39.3 - 23.6 pp
Net income
(after non-controlling 22.4 16.9 + 5,5 + 32.5%
interests)
Earnings per share
(in EUR) 0.35 0.27 + 0.08 + 29.6%
For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
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 our
expertise in lightweight engineering, we 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 our abilities as an innovator, we are committed to
sustainable mobility and earnings-driven growth. These efforts are
supported by our dedicated workforce of more than 7,900 people at 45
ElringKlinger Group locations around the globe.
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30.03.2016 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.
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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; Terminbörse EUREX
End of News DGAP News Service
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449517 30.03.2016
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