ElringKlinger AG / Key word(s): Preliminary Results
20.01.2014 18:40
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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ElringKlinger AG: Preliminary financial results for FY 2013 characterized
by one-time effects - Adverse foreign exchange effects
- Projected one-time gain of EUR 16-18 million following assumption of
control of Japanese joint venture
- Revenue for 2013 up 4.3%; organic growth of 6.1%
- EBIT estimated at EUR 160-162 million; adjusted EBIT expected to be
around EUR 146 million
- Outlook 2014: Revenue growth of 7-9% (5-7% organically),
adjusted EBIT expected to rise to EUR 160-165 million
Dettingen/Erms (Germany), January 20, 2014 +++ Automotive supplier
ElringKlinger will generate a one-time gain of an estimated EUR 16-18
million having assumed control of the 50:50 joint venture ElringKlinger
Marusan Corporation effective from December 31, 2013. This item will be
included in its operating result for the 2013 financial year.
Based on preliminary key financials, the ElringKlinger Group achieved sales
revenue of EUR 1,176.2 (1,127.2) million. Revenue growth was impacted by
the strength of the euro and came in at 4.3%. Organically, i.e. taking into
account the effects of foreign currency translation, revenue increased by
6.1% despite the extreme weakness of European vehicle markets and a
downturn in new car registrations in Russia, Brazil and India.
The marked appreciation of the euro, especially in the second half of 2013,
also had an impact on earnings before interest and taxes (EBIT), which in
the case of ElringKlinger's business include foreign exchange effects. The
automotive supplier anticipates that EBIT will amount to EUR 160-162
(136.0) million in total. This figure includes the estimated one-time gain
of EUR 16-18 million mentioned above. Adjusted for non-recurring items,
EBIT rose by around 7% to approx. EUR 146 (136.0) million in 2013, based on
preliminary figures. This was roughly 3% below the original target of at
least EUR 150 million.
In 2013, one-off restructuring charges attributable to the French site in
Nantiat (EUR 1.8 million) as well as exceptional expenses associated with
efforts to further penetrate the aftermarket sector (EUR 1.5 million)
exerted some downward pressure on earnings. By contrast, the one-off gain
from the step acquisition of Korean joint venture ElringKlinger Korea Co.,
Ltd. (EUR 1.4 million) and, as outlined above, the effects associated with
the assumption of control of ElringKlinger Marusan Corporation (EUR 16-18
million) had a positive impact.
The adjusted EBIT margin thus improved slightly, up from 12.1% in the
previous year. The company's operating result, which unlike EBIT contains
no foreign exchange effects, will be visibly higher.
Control obtained over ElringKlinger Marusan as part of expansion in Asia
ElringKlinger concluded a contractual agreement with its joint venture
partner as regards the exercise of control over the 50:50 joint venture
ElringKlinger Marusan Corporation. As of December 31, 2013, ElringKlinger
AG thus has economic control over the Marusan Group. Under IFRS, the
assumption of control necessitates full inclusion of the entity within the
scope of consolidation of the ElringKlinger Group. As outlined above, this
transition will produce a one-time gain of an estimated EUR 16-18 million
for 2013. There was no effect on sales in 2013.
Having previously been included in the Group's scope of consolidation at a
proportionate rate of 50%, the joint venture is to be fully consolidated as
from 2014. As a result, Group sales revenue will increase by around EUR 25
million in 2014 compared to the preceding financial year, while earnings
before taxes will expand by approx. EUR 1.5 million year on year.
Write-downs of intangible assets resulting from purchase price allocation
and amounting to an estimated figure of around EUR 1.5 million will have a
contrary effect in 2014.
The Japanese joint venture is of particular importance to the Asian
strategy adopted by the ElringKlinger Group, especially in the rapidly
expanding ASEAN region. Including exports, the ElringKlinger Group already
generates more than 20% of its revenue within the Original Equipment
segment in Asia, a trend that is rising. The Group saw another significant
increase in the number of ongoing development contracts with Asian
manufacturers in 2013.
Further revenue and earnings growth expected for 2014
Based on the assumption that global car production will expand by 2 to 3%,
the ElringKlinger Group anticipates that its revenue will grow by 5 to 7%
organically in 2014, thus outpacing the market as a whole. Full
consolidation of ElringKlinger Marusan Corporation will additionally
contribute around EUR 25 million in sales. The Group's EBIT margin is
expected to improve slightly compared to 2013. Adjusted for non-recurring
items, EBIT is to rise for the fifth consecutive year, reaching a level of
EUR 160 to 165 (around 146) million.
The full announcement of the final, audited results for fiscal 2013 is
scheduled for March 28, 2014.
20.01.2014 DGAP's Distribution Services include Regulatory Announcements,
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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@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 Announcement DGAP News-Service
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