The Group's principal
activity is the manufacture of cylinder-head gaskets and other sealing
and plastic components mainly for the automotive industry. The Group's
operations are carried out through five segments: Original Equipment,
Parts, Engineered Plastics, Services and Industrial Parks. The original
equipment and Spare parts segments involve the manufacture and sale of
parts and component assemblies for motor vehicle engines, transmissions
and exhaust systems. The Engineered plastics segment involves the
and sale of technical products for the automotive industry and general
industry. The Services segment involves contract operation of engine
benches and providing engine engineering services. The Industrial parks
segment involves the administration and rental of land and buildings.
Group has operations in Germany, Hungary, the UK, Spain, Italy, Canada,
the USA, Brazil, Mexico, Japan, South Korea, China and South Africa.
ElringKlinger announces preliminary results for fiscal
2016: revenue up, earnings before interest and taxes at prior-year level
Revenue up by 3.3% to EUR 1,557 million, organically by 4.7%
EBIT before purchase price allocation on a par with previous year at
EUR 140.4 million
Q4 2016: revenue improves by 4.4% to EUR 407 million, organically by
5.1%; EBIT before purchase price allocation stands at EUR 39.5 million
Outlook for current financial year on March 30, 2017
Dettingen/Erms (Germany), February 28, 2017 +++ Based on unaudited,
preliminary data, the ElringKlinger Group generated revenue of EUR
1,557.4 (1,507.3) million in the 2016 financial year just ended, up
3.3% on the previous year's figure. Taking into account the effects of
foreign exchange rates and acquisitions, growth was as much as EUR 71.1
million or 4.7% in organic terms. The direction taken by exchange rates
for the Mexican peso, Chinese yuan, and the British pound in particular
resulted in currency translation losses of EUR 33.4 million in total,
which is equivalent to -2.2%. The two entities acquired in 2016
contributed EUR 12.4 million, or 0.8%, to growth. The Group had
acquired the Dutch distribution company COdiNOx Beheer B.V. in the
first quarter; the latter was fully consolidated effective from April
11, 2016, and was integrated within the Group as Hug Engineering B.V.
Additionally, certain assets of Maier Formenbau GmbH were taken over
effective from June 1, 2016, for the purpose of strengthening
ElringKlinger's tooling operations.
At EUR 140.4 (140.4) million, Group EBIT before purchase price
allocation was unchanged year on year. This includes exceptional
charges of approx. EUR 11 million from the first half of the year
relating to the Original Equipment segment. Overall, therefore,
earnings were in line with expectations, which had been adjusted by the
Group in July 2016. The Group's earnings guidance had been revised
downward to between EUR 140 and 150 million mainly due to delays in the
migration of manufacturing operations to Hungary; this prevented the
Swiss site of ElringKlinger from recording improvements to its
performance. On publishing its results for the third quarter of 2016,
the company had put in more precise terms its earnings forecast for the
annual period, specifying a figure at the lower end of the
aforementioned range. Based on its latest preliminary results, this
target has been met.
"After three relatively weak quarters when compared to others, annual
earnings were boosted by a particularly solid performance in the fourth
quarter," said Dr. Stefan Wolf, CEO of ElringKlinger AG. This was
attributable to a number of factors, including favorable market
conditions, the sale of real estate by the company, and first and
foremost the steady improvement in earnings at the Swiss subsidiary.
"The improvement in our performance in Switzerland had a visible impact
on the fourth quarter in particular. The same quarter last year had
produced exceptional charges of EUR 13 million, whereas we have now
seen a return to more stable earnings," added CFO Thomas Jessulat.
"Progress made within this area has further strengthened our resolve to
gradually streamline our site in Switzerland by reducing the level of
fixed operating costs over the coming three years."