ElringKlinger reports recovery in first nine months

ERJ staff report (DS)

Dettingen/Erms, Germany -- The ElringKlinger Group increased its consolidated sales by 39.8 percent to euro 586.2 (419.2) million in the first nine months of 2010. Improved capacity utilisation at production level and continued cost streamlining helped to propel earnings before interest and taxes (EBIT) by 99.8 percent compared to the heavily crisis-affected first nine months of 2009, taking EBIT for the period to euro 85.7 (42.9) million. The third quarter of 2010 saw revenue increase by 33.8 percent to euro 202.5 (151.3) million, while EBIT for the same period totaled euro 31.7 (20.3) million, up 56.2 percent.

The increase in incoming orders continued over the course of the first nine months of 2010. In the third quarter, order intake was up 29.4 percent year-on-year, increasing to euro 214.7 (165.9) million.

Based on the assumption that automobile markets will continue to recover and the economic climate will remain stable, ElringKlinger has again revised upward its revenue and earnings targets for fiscal 2010. Driven by organic growth, sales revenue is now expected to increase to between euro 745 and 755 million (previously euro 690 to 710 million). The cylinder-head gasket and exhaust system division of the Freudenberg Group will not contribute to ElringKlinger Group revenue until the scheduled closing of the acquisition (Q1 2011). Therefore, revenues from this acquisition have not been included in the projected revenue figure for 2010. Earnings before interest and taxes (EBIT) are expected to increase at a more pronounced rate than sales in 2010 to between euro 105 and 110 million (previously euro 90 to 95 million).

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Press release from ElringKlinger