ElringKlinger announces preliminary results for fiscal 2016
revenue up, earnings before interest and taxes at prior-year level(PresseBox) (Dettingen / Erms, )
Revenue up by 3.3% to EUR 1,557 million, organically by 4.7%
EBIT before purchase price allocation on a par with previous year at EUR 140.4 million
Q4 2016: revenue improves by 4.4% to EUR 407 million, organically by 5.1%; EBIT
before purchase price allocation stands at EUR 39.5 million
Outlook for current financial year on March 30, 2017
Based on unaudited, preliminary data, the ElringKlinger Group generated revenue of EUR 1,557.4 (1,507.3) million in the 2016 financial year just ended, up 3.3% on the previous year's figure. Taking into account the effects of foreign exchange rates and acquisitions, growth was as much as EUR 71.1 million or 4.7% in organic terms. The direction taken by exchange rates for the Mexican peso, Chinese yuan, and the British pound in particular resulted in currency translation losses of EUR 33.4 million in total, which is equivalent to -2.2%. The two entities acquired in 2016 contributed EUR 12.4 million, or 0.8%, to growth. The Group had acquired the Dutch distribution company COdiNOx Beheer B.V. in the first quarter; the latter was fully consolidated effective from April 11, 2016, and was integrated within the Group as Hug Engineering B.V. Additionally, certain assets of Maier Formenbau GmbH were taken over effective from June 1, 2016, for the purpose of strengthening ElringKlinger's tooling operations.
At EUR 140.4 (140.4) million, Group EBIT before purchase price allocation was unchanged year on year. This includes exceptional charges of approx. EUR 11 million from the first half of the year relating to the Original Equipment segment. Overall, therefore, earnings were in line with expectations, which had been adjusted by the Group in July 2016. The Group's earnings guidance had been revised downward to between EUR 140 and 150 million mainly due to delays in the migration of manufacturing operations to Hungary; this prevented the Swiss site of ElringKlinger from recording improvements to its performance. On publishing its results for the third quarter of 2016, the company had put in more precise terms its earnings forecast for the annual period, specifying a figure at the lower end of the aforementioned range. Based on its latest preliminary results, this target has been met.
"After three relatively weak quarters when compared to others, annual earnings were boosted by a particularly solid performance in the fourth quarter," said Dr. Stefan Wolf, CEO of ElringKlinger AG. This was attributable to a number of factors, including favorable market conditions, the sale of real estate by the company, and first and foremost the steady improvement in earnings at the Swiss subsidiary. "The improvement in our performance in Switzerland had a visible impact on the fourth quarter in particular. The same quarter last year had produced exceptional charges of EUR 13 million, whereas we have now seen a return to more stable earnings," added CFO Thomas Jessulat. "Progress made within this area has further strengthened our resolve to gradually streamline our site in Switzerland by reducing the level of fixed operating costs over the coming three years."
ElringKlinger will publish its full and definitive results for the 2016 financial year on March 30, 2017, together with its outlook for 2017.