DGAP-News

ElringKlinger with strong organic revenue growth in Q1 2015 - Seite 2

prior-year figure. The entity formerly known as M&W contributed EUR 0.6
million to Group EBIT.

Business in the Original Equipment segment of the ElringKlinger Group was
characterized by extremely high capacity utilization during the first
quarter of 2015. Individual divisions within this segment recorded a
disproportionately large surge in demand. This necessitated the
introduction of extra shifts and additional freight movements, thus pushing
the cost base up by around EUR 4 million. In addition, EBIT was diluted by
around EUR 2.5 million as a result of the sudden appreciation of the Swiss
franc against the euro. Additionally, the Group incurred start-up costs in
connection with the commencement of serial production - scheduled for the
second quarter of 2015 - of pioneering hybrid polymer-metal components.

What is more, the comparative base of the Exhaust Gas Purification division
(Hug) was very high in the first quarter of the previous financial year,
which has to be taken into account in a year-on-year comparison. In the
first quarter of 2014, Hug - buoyed by billings relating to two major
projects - had contributed earnings before interest and taxes of EUR 7.6
million on the back of revenue of EUR 20.7 million. In the first quarter of
2015, by contrast, Hug generated revenue of EUR 12.2 million. Against this
background and due to the strength of the Swiss franc, Hug made no
contribution to earnings in the first quarter of 2015.

The EBIT margin (before purchase price allocations) thus stood at just
under 10% (13.3%). In addition to being impacted by the factors outlined
above during the first quarter of 2015, the EBIT margin was diluted by the
full consolidation of ElringKlinger Marusan Corporation, Japan, (around 0.3
percentage points) as well as the persistently sluggish performance of the
E-Mobility division (around 0.6 percentage points).

Foreign exchange gains contribute to net finance income
The strong depreciation of the euro against key Group currencies produced
foreign exchange gains in connection with financing activities. These net
gains amounted to EUR 6.5 (0.1) million. In parallel, net interest costs
totaled EUR 3.0 (2.7) million. As a result, the Group recorded net finance
income of EUR 3.5 million in the first quarter of 2015, as opposed to net
finance cost of EUR 2.6 million a year ago.

Net income after non-controlling interests at EUR 28 million
Tax expenses fell to EUR 9.7 (10.2) million in the first quarter of 2015.