ElringKlinger reports lower profits on strong sales in H1

ERJ staff report (DS)

Dettingen, Germany -- The ElringKlinger Group increased consolidated sales by 30.0 percent to EUR 498.9 (383.7) million in the six months to June 2011. After taxes and minority interests, net income rose by 15.5 percent to EUR 39.5 (34.2) million in the first half of 2011.The company is now reporting its official results, which are the same as the preliminary results published last week.

In the second quarter, the ElringKlinger Group saw sales revenue increase by 26.6 percent to EUR 254.4 (201.0) million. Following a strong period last year, the Group saw net income decline by 8.7 percent to EUR 18.8 (20.6) million in the second quarter of 2011.

The flat gaskets business acquired from the Freudenberg Group contributed EUR 14.0 million to sales revenue in the second quarter of 2011 and minus EUR 0.6 million to earnings before taxes. This figure includes the purchase price allocation of EUR 0.1 million as well as EUR 0.4 million in non-recurring staff costs associated with the partial relocation of gasket production in Germany to a French plant in close proximity to ElringKlinger customers.

ElringKlinger is currently implementing extensive integration measures at the recently acquired businesses, with the express purpose of bringing efficiency levels in line with those achieved by the ElringKlinger Group. The Hug product portfolio in particular, which includes diesel particulate filters and exhaust abatement systems, already shows considerable cross-selling potential to be leveraged via existing distribution channels operated by the ElringKlinger Group.

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Press release from ElringKlinger