euro adhoc: ElringKlinger AG / Financial Figures/Balance Sheet / New product ramp-ups contribute to double-digit growth in 2007

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annual report

27.03.2008

Dettingen/Erms (Germany), March 27, 2008 +++ The ElringKlinger
Group again succeeded in generating double-digit growth in both sales
and earnings over the course of the 2007 financial year. Sales rose
by 15.0% to EUR 607.8 (528.4) million, while net income at Group
level grew by 29.7% to EUR 80.3 (61.9) million. The automotive
supplier plans to unlock further sales and earnings growth during the
2008 financial year.

Sales growth was driven by all segments within the Group. Despite the
visible decline in vehicle sales in the US and stagnation within the
European car market, the Original Equipment segment managed to propel
sales by 16.5% to EUR 435.5 (374.0) million in 2007. Benefiting from
a broader product range and buoyant demand from Eastern Europe as
well as the Middle East and South East Asia, the Aftermarket segment
expanded its sales by 13.0% to EUR 94.8 (83.9) million. Within the
Engineered Plastics segment, which manufactures high-performance PTFE
products for various industries, sales rose by 10.2% to EUR 64.8
(58.8) million. Recording growth of 18.6%, the Group's international
markets assumed a more prominent position. In South America sales
rose by 23.6%, while North America expanded by 16.7%. Business in
China and Korea also developed at an encouraging level.

Expenditure on the development of new products and technologies rose
to EUR 29.8 (26.0) million in 2007, the main focus being on
investments aimed at expanding production capacity and initiating
production ramp-ups for new products in the portfolio. In total the
Group´s payments for investments in property, plant and equipment and
investment properties and intangible assets amounted to EUR 95.0
(49.6) million.

Earnings performance was influenced to a large extent by spiraling
prices for raw materials and high energy costs. The cost of sales at
Group level increased by 18.1%. However, capital expenditure directed
at further automation projects and process improvements at all Group
sites, together with the high capacity utilization of machinery and
the growing share of new products in the portfolio, helped to lift
earnings before interest and taxes (EBIT), having accounted for
negative foreign currency effects, by 29.6% to EUR 121.0 (93.3)
million. After deducting one-time gains of EUR 5.0 million from
insurance proceeds in connection with the fire at one of the
company's German production facilities, year-on-year EBIT growth
amounted to 24.3%. Earnings before taxes rose by 31.1%, up from EUR
87.6 million in 2006 to EUR 114.9 million in 2007.

The corporate tax reform enacted by the German government
necessitated a revaluation of deferred tax assets and deferred tax
liabilities. This led to tax income of EUR 5.5 million, which was
offset with income tax expense. The Group's income tax rate thus
amounted to 30.1% (29.4%). Within this context, it should be noted
that - also as a result of the corporate tax reform - a corporation
tax credit of EUR 5.3 million had already had a tax-reducing effect
in 2006.

Consolidated net income rose by 29.7% to EUR 80.3 (61.9) million.
Adjusted for the one-time gain of EUR 3.2 million after taxes from
insurance proceeds as well as for non-recurring income of EUR 5.5
million from deferred tax items, consolidated net income increased to
EUR 71.5 (56.6) million, thus exceeding the previous year's figure -
also adjusted for one-time tax effects - by 26.3%. After deducting
minority interests, profit attributable to the shareholders of
ElringKlinger AG (consolidated net income after minority interests)
stood at EUR 75.9 (57.8) million, i.e. 31.4% higher than a year ago.
Adjusted for one-off items, profit attributable to shareholders of
ElringKlinger AG rose by 28.0%. Earnings per share were up from EUR
3.01 to EUR 3.95.

Shareholders are to profit from the Group's solid performance by
receiving a dividend in excess of that paid for the previous
financial year. The Management Board and Supervisory Board of
ElringKlinger AG will be proposing to the General Meeting of
Shareholders a dividend of EUR 1.40 (1.25) per share for the 2007
financial year.

ElringKlinger has begun the new financial year with a solid order
backlog. Within the Original Equipment segment order backlog at the
end of the 2007 financial year exceeded that recorded a year earlier
by 17.7% Order intake rose by 15.4%.

ElringKlinger plans to lift Group sales by 5 to 7% in 2008.
ElringKlinger plans to complement its organic growth by company
acquisitions if a favorable opportunity arises. The announced
takeover deal for the SEVEX Group, a Swiss-based specialist within
the field of thermal and acoustic shielding systems, is about to be
closed. Raw material and energy prices are likely to remain at an
elevated level. Within this context, ElringKlinger plans to grow
earnings stronger than sales and achieve a pronounced increase in
consolidated net income after minority interests - excluding
non-recurring items - for the 2008 financial year by streamlining its
costs and launching new products.

end of announcement euro adhoc
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ots Originaltext: ElringKlinger AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Stephan Haas

Investor Relations Manager

Telefon: +49(0)7123 724-137

E-Mail: stephan.haas@elringklinger.de

Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Börse Stuttgart / regulated dealing


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