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08.11.2007 – 08:17

ElringKlinger AG

euro adhoc: ElringKlinger AG
quarterly or semiannual financial statement / ElringKlinger records double-digit growth in sales revenues and earnings over first nine months of 2007

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
9-month report
Dettingen/Erms (Germany), November 8, 2007 - - - The ElringKlinger 
Group succeeded in further expanding both its sales revenues and 
earnings in the first nine months of the 2007 financial year. The 
automotive supplier propelled Group sales revenues upwards by EUR 
62.0 million or 15.6% to EUR 460.0 (398.0) million. Sales revenues 
also developed favorably over the course of the third quarter of 
2007. Despite the general downturn witnessed in the Western European 
and North American automotive markets, ElringKlinger was able to 
increase Group sales revenues by 16.6% to EUR 150.0 (128.7) million 
in the third quarter. The most substantial percentage increases were 
achieved in Asia, North America and the non-domestic European 
markets. Product ramp-ups, the continuing rise in diesel share of new
car registrations and buoyant demand for specialty gaskets and 
thermal shielding components for the exhaust tract proved to be the 
principal growth drivers. The expansion of ElringKlinger's business 
activities in Asia, led first and foremost by China and Korea as well
as India, where the company will be opening a new plant in the coming
weeks, also produced forward momentum.
Within the Original Equipment segment, sales revenue rose by 16.7% to
EUR 327.1 (280.3) million in the first nine months of 2007. In the 
third quarter, ElringKlinger lifted OEM sales revenue by 20.5% to EUR
106.0 (88.0) million. An expansion of the overall product range and 
more dynamic demand from Eastern Europe, the Middle East and South 
America combined to produce revenue growth of 14.7% in the 
Aftermarket segment, taking the figure to EUR 73.8 (64.4) million in 
this segment. In the third quarter sales revenues within this area 
amounted to EUR 24.2 (22.1) million, 9.4% up on the figure posted for
the same period a year ago. The Engineered Plastics segment, which 
focuses on the development and manufacture of products made of 
high-performance PTFE, managed to increase sales revenues by 10.8% in
the first nine months of 2007 to EUR  49.7 (44.8) million. In the 
third quarter, sales revenues within this area rose by 6.8% to EUR 
16.5 (15.5) million.
Investments in the expansion of production capacity and projects 
aimed at process streamlining have risen significantly in the 
financial year to date. Over the course of the first nine months of 
2007, a total of EUR 58.4 (31.7) million was channeled into property,
plant and equipment as well as investment property.
Substantial energy costs and high material prices, particularly in 
the case of nickel, continued to have an adverse effect on margins. 
Although prices for nickel listed on the commodities futures 
exchanges began to decline from mid-2007 onwards, this favorable 
trend has yet to have a positive effect on business. In the first 
nine months, the cost of sales rose by 16.9%, as a result of which 
the gross margin receded slightly to 34.5% (35.3%). In the third 
quarter, the cost of sales stood at 35.1%. Selling as well as general
and administrative expenses climbed at a slower rate than sales 
revenues. In the first nine months of 2007, research and development 
costs within the ElringKlinger Group rose by EUR 1.7 million to EUR 
22.6 (20.9) million. Within the development area of diesel 
particulate filters and fuel cell components the company has 
earmarked pre-expenses in excess of EUR 3 million for 2007.
The damage caused by a fire and the associated operational 
interruptions at the company's plant in Runkel in mid-April 2007 are 
covered by insurance compensation. In view of the fact that the 
insurance proceeds were in excess of the residual amounts to be 
written off in connection with damaged machinery, plant and 
buildings, the company earned non-recurring extraordinary income of 
EUR 4.7 million, which was accounted for in the second quarter.
Earnings performance benefited from higher capacity utilization and 
the growing proportion of new products within the portfolio. Having 
accounted for negative foreign currency effects equivalent to EUR 0.9
million, EBITDA rose by 19.8% to EUR 123.4 (103.1) million in the 
first nine months of 2007. Adjusted for extraordinary income from 
insurance proceeds, EBITDA growth stood at 15.2%. In the third 
quarter negative foreign currency effects amounted to EUR 0.4 
million. During this period EBITDA increased by 10.3% to EUR 39.7 
(36.0) million.
In the first nine months, EBIT rose by 32.4% to EUR 91.2 (68.9) 
million. Having deducted extraordinary income, EBIT growth amounted 
to 25.6%. In the third quarter EBIT increased by 26.0% to EUR 29.1 
(23.1) million, with the EBIT margin rising to 19.4% (17.9%).
Earnings before taxes rose by 33.6% in the first nine months of 2007,
up from EUR 65.2 million to EUR 87.1 million. Excluding extraordinary
income, EBIT growth amounted to 26.4%. In the third quarter earnings 
before taxes rose by 26.3% to EUR 27.4 (21.7) million.
The corporate tax reform passed by the German government requires a 
revaluation of deferred tax assets and liabilities accounted for by 
companies, which ElringKlinger performed as of September 30, 2007. 
Within this context, the calculation is conducted on the basis of the
cumulative domestic corporate tax rate to be applied effective from 
the 2008 financial year, which will be reduced from approximately 
37.0% to 27.3%. The aforementioned revaluation led to non-cash 
extraordinary income of EUR 5.9 million, which in turn resulted in a 
corresponding increase in consolidated net income.
Thus, the income tax rate decreased to 28.4% (35.6%) in the first 
nine months of 2007. Consolidated net income rose by 48.6% to EUR 
62.4 (42.0) million. Adjusted for extraordinary income of EUR 2.9 
million, after taxes, from the above-mentioned insurance claim and 
non-recurring income from the revaluation of tax items amounting to 
EUR 5.9 million, consolidated net income totaled EUR 53.6 million, 
thus exceeding the figure posted for the same period a year ago by 
27.6%. Based on a tax rate of 14.6% (35.9%), consolidated net income 
for the third quarter rose by 68.3% to EUR 23.4 (13.9) million. 
Adjusted for extraordinary income, consolidated net income increased 
by 25.8% to EUR 17.5 million.
After deducting minority interests, consolidated net income for the 
first nine months stood at EUR 58.9 (38.8) million, which represents 
growth of EUR 20.0 million compared with the same period a year ago. 
Adjusted for extraordinary income, ElringKlinger was able to increase
consolidated net income after minority interests by 28.9% to EUR 50.1
In the third quarter of 2007, consolidated net income after minority 
interests increased by 76.6% to EUR 22.5 (12.7) million. Minority 
interests accounted for EUR 0.9 million in the third quarter of 2007,
down from EUR 1.2 million in the same period a year ago, mainly as a 
result of the purchase of an additional stake in ElringKlinger 
Kunststofftechnik GmbH in August 2007. Adjusted for extraordinary 
items, consolidated net income after minority interests rose by 30.2%
to 16.6 million.
Earnings per share calculated in accordance with IFRS rose by 51.6%, 
up from EUR 2.02, to EUR 3.07 in the first nine months of 2006. 
Adjusted for extraordinary items, earnings per share improved by 
28.9% to EUR 2.61. In the third quarter, ElringKlinger increased 
earnings per share by 76.6%, from EUR 0.66 a year ago to EUR 1.17. 
Adjusted for extraordinary items, ElringKlinger achieved earnings per
share of EUR 0.86, which represents a 30.2% increase compared with 
the third quarter of 2006.
ElringKlinger's order intake and order backlog continued to develop 
on a solid basis. Order intake increased by 14.9% to EUR 486.2 
(423.3) million in the first nine months. Order intake for Q3 2007 
was 13.6% higher than in the same quarter a year ago. At the end of 
the third quarter order backlog stood at EUR 234.4 (203.0) million, 
which represents a year-on-year increase of 15.5%.
On the back of positive results for the first nine months, the 
ElringKlinger Group is well on track to exceed its original targets 
for 2007. The plan was to raise consolidated sales revenues by 5 to 
7% and consolidated net income after minority interests by around 
10%.  However, ElringKlinger has now defined a new target of 
approximately 11% revenue growth for the 2007 financial year as a 
whole. Adjusted for non-recurring items, consolidated net income 
after minority interests is to rise by 17 to 19% year on year. Over 
the course of 2007, ElringKlinger has generated extraordinary income 
from insurance proceeds in the amount of EUR 2.9 million as well as 
from the revaluation of deferred taxes in the amount of EUR 5.9 
million as a result of Germany's corporate tax reform. In 2006 a 
corporation tax credit amounting to EUR 5.3 million had contributed 
to consolidated net income after minority interests as a 
non-recurring item. Provided that the general economic climate 
remains stable, ElringKlinger anticipates that both revenue and 
adjusted consolidated net income after minority interests will 
continue to grow in 2008.
end of announcement                               euro adhoc 08.11.2007 07:32:16

Further inquiry note:

Stephan Haas
Investor Relations Manager
Telefon: +49(0)7123 724-137

Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Börse Stuttgart / official dealing

Original content of: ElringKlinger AG, transmitted by news aktuell

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