Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ELRINGKLINGER AG. We currently have 11 research reports from 1 professional analysts.
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Good cash generation, but poor Q3 profit numbers
08 Nov 16
The group showed Q3 revenue growth of 2.2% to €374m which brought the ytd number to €1.15bn, an increase of 3.0%. However, profits continued falling. EBIT was down by 12% to €31m in the last quarter and 11% to €97m ytd. As net financial expenses fell from €5.6m to €3.6m in Q3, net earnings fell by only 4% to €19.9m. However, net financial expenses were up by €4m ytd and this resulted in a net profit fall of 15% to €58.8m. Our 9M revenue expectation was €10m higher and EBIT and net earnings were €8m and €6m higher. On the other hand, cash from operations (based on management’s definition) of €46m (+42%) was the highest Q3 number in recent years and the same is true for the €118m (+29%) for the 9M.
Expanding into engineering
27 Oct 16
ElringKlinger has acquired a 27% stake in Hofer AG, combined with a 53% stake in its subsidiary Hofer Powertrain Products GmbH. The purchase price has not been released but indications are in the double-digit million euro range. The deal is expected to be closed early next year, after which Hofer Powertrain will be fully consolidated.
The rather poor profit development has continued in Q2
04 Aug 16
Management had indicated earlier that profits had continued to fall in the last quarter. In fact, the final H1 numbers show a revenue increase of 3.3% to €776m, but EBIT was down by 10% to €66m and net earnings by almost 20% to slightly less than €40m.
Profit warning for 2016
22 Jul 16
ElringKlinger is due to release final H1 numbers on 4 August but it has given some indications this morning. Revenue increased by 3.3% to €776m (we had expected €784m), while EBIT before PPA fell by 11% to €68m. The stated EBIT number is €66m, 10.4% lower than a year ago. We had expected €76m. As a consequence of the above, management now sees the full-year EBIT before PPA coming in at between €140m and €150m instead of €160-170m. We had been much more cautious in the first place and expected an EBIT number of €147m for 2016. Consequently, we are unlikely to change our projections significantly once the half-year report is released.
ElringKlinger moves towards mass-volume, low-margin production
07 Jun 16
The company has published a press release (see below) which indicates that it intends to become an ‘extended workbench’. The technology for the components it will deliver to a first-tier car component supplier (Brose) has been developed by this client and ElringKlinger will be the producer in two existing factories (in Hungary and Mexico) and in one new plant (in China). As ElringKlinger has neither developed the technology nor supplies the OEM directly, we believe that this is a low-margin business. The press release: ElringKlinger has received a high-volume serial-production order from German automotive supplier Brose. The contract covers the supply of door module carriers made of organo sheets, which are to be fitted to compact-class vehicles manufactured by a global car maker. Running until the year 2024, the order is worth more than €100m in total. Production in Europe is scheduled to commence in Hungary at the end of 2017, which will be followed by the start of serial production in China and Mexico in 2018. While the production sites in Hungary and Mexico are to be expanded, a new plant is to be established in China. “This large-scale contract bears testimony to our research efforts with innovative fibre-reinforced composites and illustrates our expertise in the field of lightweight components,” said Dr Stefan Wolf, CEO of ElringKlinger. ElringKlinger’s door module carriers are another structural component within the product portfolio for use in the vehicle body. “By becoming increasingly independent of drive systems, we are establishing the strongest possible foundation for the future,” explained Dr Wolf. In securing this contract, ElringKlinger has shown its determination to pursue a strategy aimed at contributing to the reduction of vehicle fuel consumption and emissions through intelligent lightweight solutions. Among other things, the innovative door module carrier helps to reduce the overall weight of vehicle doors. Their production involves forming extremely light and stable fibre-reinforced composites – so-called organo sheets – and injection-moulding plastic elements onto the parts for additional component functions – in a single step. The technology applied in this field was developed by Brose. ElringKlinger is the strategic partner for execution at an industrial level.
Sales slightly up but profits sharply lower than expected
04 May 16
ElringKlinger’s Q1 revenue number was up by 4% to €385m but EBIT fell by 13% to €31m and net earnings by 39% to €17.2m. All these numbers are below our expectations of €389m, €40m, and €27m. €2.6m of the profit disappointment is the consequence of Management Board member Schmauder having left the company in February. In addition, production bottlenecks have cost another €7m.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
A compelling global brand roll-out story
22 Feb 17
We believe that SuperGroup remains one of the most undervalued global brand roll-out stories within the UK retail sector. The stock trades at c20% discount to its UK peers on a 1YF EV/EBITDA basis despite best-in-class revenue growth and profit margins. SuperGroup operates a leading multi-channel proposition, has strong sales momentum across each channel and forecast risk remains on the upside. We initiate coverage on the shares with a buy recommendation and price target of 1898p, implying upside of 27.8% over the prevailing market price.
High single digit EPS growth remains on track
17 Feb 17
BAT (BATS LN, HOLD, T/P 5300p) announce their preliminary 2016 results on Thursday 23rd February. We forecast revenue to increase 13% to £14.8bn, in line with Bloomberg consensus, and adjusted diluted EPS to continue its positive momentum to 249p (232p FY2015). Analyst consensus is 246p.