DGAP-News

ElringKlinger sustains strong revenue and earnings growth in third quarter of 2014 - Seite 2

entity's revenue contribution (EUR 19.5 million) originally included at a
proportionate rate of 50%. Effective from the first quarter of 2014, the
entity was fully consolidated as a result of the assumption of control
effective from December 31, 2013, and accounted for in Group revenue with
its total revenue of EUR 35.4 million. The additional contribution to
revenue in the first nine months of 2014 thus amounted to EUR 17.7 million
(EUR 6.1 million in the third quarter). When determining organic revenue
growth, the joint venture was accounted for as if the entity had remained
subject to proportionate consolidation, as originally presented in 2013.


Further improvement in EBIT in third quarter

Despite a number of adverse factors, EBIT grew by 11.4% year on year to EUR
124.8 (112.0) million in the first nine months of 2014. In this context,
the full consolidation of ElringKlinger Marusan Corporation (dilutive
effect of around 0.2 percentage points on margin) as well as up-front and
start-up costs incurred in the new E-Mobility division (EBIT loss of EUR
6.0 million) and the decline in earnings contributed by the Brazilian
subsidiary exerted downward pressure.

In the third quarter of 2014, the Group achieved EBIT of EUR 41.2 (38.3)
million, thereby exceeding the figure for the same period a year ago by
7.6%. Supported by a positive performance in the company's core business,
the EBIT margin improved slightly compared with the preceding quarter, up
from 12.4% to 12.6%, despite the fact that earnings contributed by the Hug
Group in the third quarter, amounting to EUR 2.0 (2.3) million, failed to
reach the extremely high levels recorded in the first half. In the third
quarter, EBIT attributable to the E-Mobility division remained unchanged on
the previous quarter (EUR -1.9 million). Additionally, earnings generated
by the Brazilian subsidiary were down EUR 1.0 million on the previous
year's figure, having been adversely affected by the extremely poor
performance of Brazil's vehicle market. Before purchase price allocation,
adjusted EBIT for the third quarter was EUR 42.1 (38.6) million. The
adjusted EBIT margin before purchase price allocation stood at 12.9%.

For the purpose of improved comparability, as from January 1, 2014,
ElringKlinger no longer includes foreign exchange gains and losses, which
are mainly attributable to financing activities, in the financial indicator
EBIT. Thus, as is standard, EBIT corresponds to the operating result
reported in the income statement. Based on the former method of