ERJ staff report (RD)
Dettingen/Erms, Germany -- Original equipment supplier ElringKlinger Group has reported sales of Euro 182 673 million in the first quarter of 2010 (Q1), up 40.9 percent from Euro 129 700 million a year earlier.
The company benefited from the global recovery of automobile markets as well as its strong positioning in Asia and new product ramp-ups, a 10 May company statement said.
Profiting from cost streamlining and improved capacity utilization in production, ElringKlinger's Q1 operating result rose to Euro 23.4 million, a more than sixfold increase compared to the same quarter a year ago, which had been severely impacted by the market crisis. The Group posted net income, after minority interests, of Euro 13.6 million, compared to Euro 2 million in the same period last year.
The company's OE segment reported Q1 sales revenue up by 56.2 percent to Euro 136.4 million, noting â€œabove-average gainsâ€ in Asia and South America, in particular, as well as in the North American automotive market.
ElringKlinger said the gradual upturn in order intake, already evident since the second quarter of 2009, continued during the first quarter. Order intake for the first quarter of 2010 rose to Euro 200.5 million from 125.4 ) million in Q1 2009. â€œThus, the upward trend also remained intact in relation to the fourth quarter of 2009 (EUR 173.0 million).â€
Based on the assumption that automobile markets will continue to recover and that economic conditions will remain stable, ElringKlinger has revised upwards its revenue and earnings targets for the annual period as a whole, the statement said.
â€œAt present, ElringKlinger is targeting a rise in sales revenue of 10 to 13 percent (previously 7 to 10 percent). EBIT is to be expanded by 20 to 25 percent (previously 12 to 15 percent), i.e. at a more pronounced rate than sales revenue,â€ the company said.
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Press release from Elringklinger Group