EANS-News: ElringKlinger sales exceed one billion euro mark for the first time in 2011

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Financial Figures/Balance Sheet

Dettingen/Erms (euro adhoc) - Dettingen/Erms (Germany), March 29,
2012 +++ In 2011, the ElringKlinger Group yet again outpaced global
vehicle production in terms of percentage growth. The Group saw its
sales revenue expand by 29.8% to EUR 1,032.8 (795.7) million.
Earnings before interest and taxes exceeded the previous year's
figure by 39.4%, rising to EUR 148.7 (106.7) million. Net income
after minority interests increased at a more pronounced rate, up
44.7% to EUR 94.9 (65.6) million.

Strongest growth in Original Equipment segment Benefiting from the
rise in global car production by around 4% in 2011 and the
introduction of a number of new products, the Original Equipment
segment recorded revenue growth of 36.3%, taking sales to EUR 827.2
(606.9) million. The buoyant growth in sales was also fueled by
acquisitions transacted in 2011, whose business activities were
almost entirely attributable to the Original Equipment segment. The
Aftermarket segment generated forward momentum mainly within the
international markets, thereby lifting sales revenue by 5.4% to EUR
112.9 (107.1) million.

Financial year dominated by acquisitions and sale of industrial park
In total, first-time inclusion of the metal flat gaskets business
acquired from the Freudenberg Group, the Swiss exhaust treatment
specialist Hug Engineering AG and the Hummel-Formen Group contributed
EUR 83.7 million to Group revenue. At minus EUR 5.0 million, earnings
before taxes contributed by the acquired entities were as yet in
negative territory. This figure included EUR 2.2 million relating to
purchase price allocations. The non-recurring negative purchase price
allocation attributable to Hummel in the fourth quarter amounted to
EUR 0.5 million.

In August 2011, ElringKlinger AG disposed of its Ludwigsburg
industrial park, as it no longer formed an integral part of the
automotive supplier's core business. The sale resulted in a one-time
gain of EUR 22.7 million for the Group, which was accounted for in
other operating income.

Significant R&D costs for new products in core business and
E-Mobility ElringKlinger expended EUR 49.9 (40.6) million on research
and development, a significant increase compared to the previous
financial year. Within this context, the E-Mobility division, newly
established in 2010, underwent considerable expansion. Over the
course of the year ElringKlinger secured a number of additional
development contracts from several vehicle and battery manufacturers
for the company's cell contact systems used in lithium-ion batteries.
The first systems for hybrid vehicles went into serial production in
mid-2011.

Whereas general and administrative expenses as well as selling
expenses rose at a slower rate, other operating expenses surged by
107.1% to EUR 11.6 (5.6) million. Of this total, an amount of EUR 9.1
million alone was attributable to the fourth quarter.

One-time write-downs in fourth quarter Driven in particular by
significant investments within the Group, depreciation, amortization
and write-downs rose to EUR 96.8 (82.2) million. Additionally,
depreciation and write-downs of property, plant and equipment
included a one-time impairment loss of EUR 1.5 million recognized in
the fourth quarter in respect of merger surpluses. This was
attributable to the first-time inclusion of Elring Klinger GmbH in
the consolidated financial statements of the former parent company
ZWL Grundbesitz- und Beteiligungs-AG completed back in the year 1998.
Additionally, losses on the disposal of assets and write-downs
attributable to receivables accounted for a total of EUR 4.1 million
in the fourth quarter.

As part of the extension of Management Board contracts finalized in
December 2011, pension provisions were adjusted in the fourth
quarter. As a result, general and administrative expenses increased
by a one-time amount of EUR 0.8 million. More extensive flexitime
accounts as a result of higher capacity utilization necessitated an
increase in provisions in the fourth quarter.

The Group's operating result for the full year rose by EUR 35.1
million year on year to EUR 151.1 (116.0) million, despite the
effects of noticeably higher commodity prices. This figure included
the above-mentioned income from the sale of the industrial park.
Without this item, the operating result would have been EUR 128.4
million. This figure includes a charge of EUR 2.2 million relating to
the purchase price allocation for the acquisitions.

Adjusted EBIT at EUR 126.0 million Earnings before interest and taxes
(EBIT), which in contrast to the operating result takes account of
foreign exchange gains and losses, were adversely affected by net
foreign exchange losses of EUR 2.4 million in 2011. Thus, EBIT rose
by 39.4% to EUR 148.7 (106.7) million. Adjusted for the one-time
gain, Group EBIT rose by 18.1% to EUR 126.0 million. Adjusted EBIT
before purchase price allocation stood at EUR 128.2 million.

Despite net foreign exchange losses of EUR 2.4 million, net finance
costs fell to EUR 14.5 (22.1) million. As a result, earnings before
taxes for the ElringKlinger Group amounted to EUR 136.6 (94.0)
million. Compared to the previous financial year, this represents an
increase of 45.3%. The tax rate rose to 28.6% (27.0%).

Net income after minority interests grows by 44.7% Net income rose by
42.3% year on year to EUR 97.6 (68.6) million. As a result of the
purchase of minority interests by ElringKlinger AG in 2011, profit
attributable to non-controlling interests was scaled back. Therefore,
net income after minority interests (i.e. profit attributable to the
shareholders of ElringKlinger AG) increased by a slightly more
pronounced rate, rising by 44.7% to EUR 94.9 (65.6) million.
Correspondingly, earnings per share stood at EUR 1.50 (1.11) in 2011;
this was based on a figure of 63,359,990 shares outstanding, which
was higher than in the previous year as a result of the seasoned
equity offering of October 2010.

Dividend with special bonus As a result of the one-time gain from the
sale of the Ludwigsburg industrial park in August 2011, net income
for the ElringKlinger Group as a whole was boosted by an additional
EUR 16.5 million in 2011, having accounted for deferred taxes. Beyond
the proposed regular dividend of EUR 0.40 (0.35) per share for the
financial year 2011, shareholders are also to benefit from the
aforementioned one-time gain. This is to be implemented in the form
of an additional special bonus of EUR 0.18 per share. On this basis,
the Management Board and the Supervisory Board will propose to the
Annual General Meeting resolving on the 2011 financial year a total
dividend of EUR 0.58 (0.35) per share, which represents a
year-on-year increase of 65.7%. Compared with the previous year, the
total dividend to be distributed will rise by EUR 14.5 million to EUR
36.7 (22.2)million.

Double-digit growth in order intake repeated in fourth quarter
Business for the ElringKlinger Group remains solid in terms of orders
in hand. Order intake rose by 22.8% to EUR 1,089.0 (886.6) million in
2011. At EUR 272.6 (227.3) million, order intake for the fourth
quarter of 2011 was again up on the figure recorded in the buoyant
final quarter of 2010. Order backlog for the ElringKlinger Group
totaled EUR 448.4 (333.1) million as at December 31, 2011. This
represents an increase of 34.6% on the previous year's figure.

Revenue and EBIT, before one-time effects, to expand further in 2012
The ElringKlinger Group anticipates that global vehicle production
will expand slightly in 2012. Against this backdrop, the Group plans
to raise sales revenue by 5 to 7% in 2012 in terms of organic growth.
Within this context, it should be noted that the level of revenue
growth achieved in fiscal 2011 was significantly higher than
originally forecast. An additional revenue contribution of around EUR
20 million is expected from the consolidation of recently acquired
Hug Engineering AG and Hummel-Formen Group, which for the very first
time will be included in the consolidated group for a full annual
period in 2012.

The consolidated entities acquired will see an improvement in their
overall earnings situation in 2012, having as yet contributed
negative aggregate earnings in the 2011 financial year. However, the
EBIT margin of the Group's core business will be diluted to some
extent as a result of the as yet weaker margins recorded by the
acquired entities and the purchase price allocations associated with
these acquisitions as well as the lead costs incurred in the field of
battery technology. Despite these effects, ElringKlinger anticipates
that EBIT, adjusted for non-recurring items, will grow faster than
sales revenue in percentage terms. Group EBIT adjusted for
non-recurring items is expected to be in a range of EUR 145 to 150
million (EUR 126.0 million in fiscal 2011) in 2012.

Further inquiry note:
ElringKlinger AG
Investor Relations / Corporate Communications
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-137
E-Mail:stephan.haas@elringklinger.com

end of announcement euro adhoc
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company: ElringKlinger AG
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
phone: +49(0)7123 724-0
FAX: +49(0)7123-7249000
mail: info@elringklinger.com
WWW: http://www.elringklinger.com
sector: Automotive Equipment
ISIN: DE0007856023
indexes: MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Berlin, München, Düsseldorf, regulated dealing:
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English