euro adhoc: ElringKlinger AG / quarterly or semiannual financial statement / ElringKlinger generates growth in sales revenues of 12 percent and earnings growth of 23 percent in the first half of the y

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10.08.2006

> Consolidated net income after minorities increases 23%
> Operating result 21% higher
> Operating cash flow increases 58%
> Order backlog 16% higher

Dettingen/Erms, August 10, 2006 - - - The ElringKlinger Group
increased its sales revenues in the first half of 2006 by 12.2% to
EUR 269.3 (240.0) million. Sales revenues also developed positively
in the second quarter of 2006. Despite declining vehicle production
figures in the triad markets and three fewer working days in the
quarter when compared to the second quarter a year ago, ElringKlinger
increased Group sales revenues to EUR 133.3 (123.0) million. The
company generated the strongest growth in Asia, the NAFTA region and
in South America. New product ramp-ups, growing demand for diesel
engines and increasingly stricter emissions limits worldwide
supported this trend.

The OEM segment generated disproportionately high growth in sales
revenues. In the first six months of 2006, sales revenues in this
segment increased by 15.3% to EUR 192.3 (166.8) million. In the
second quarter, ElringKlinger increased sales revenues in the OEM
segment by 12.5% to EUR 96.5 (85.8) million. The Shielding Technology
division witnessed particularly strong growth. Additional product
ramp-ups with the new, higher-performance stopper technology occurred
in the Cylinder-Head Gaskets division.

In the first half of the year, sales revenues in the Aftermarket
segment increased by 1.0% to EUR 42.3 (41.9) million. In the second
quarter, revenues here amounted to EUR 20.1 (21.6) million due to
three fewer working days and weaker demand in several Western
European markets. In the second half of the year 2006, ElringKlinger
expects sales revenues in the Aftermarket segment to increase once
again.

The Engineered Plastics segment remained on a growth course. In the
first half of the year, sales revenues in this segment increased by
11.0% to EUR 29.4 (26.5) million, with sales revenues in the second
quarter amounting to EUR 14.1 (13.2) million. ElringKlinger is
driving the internationalization of the engineered plastics business
and the expansion of its product portfolio by enlarging its sales and
R&D activities in this field.

The cost of sales in the first half of 2006 and also in the second
quarter increased at a slower rate than sales revenues expansion. In
the first six months 2006 cost of sales were 10.8% higher totalling
EUR 174.6 (157.6) million. In the second quarter cost of sales
amounted to EUR 86.1 (80.9) million. A further increase in energy and
materials prices burdened the business. However, ongoing
rationalization measures and continued increases in productivity
allowed for an improvement in the gross margin. In the second
quarter, the gross margin increased to 35.4% (34.2%). The number of
employees grew at a slower pace than sales revenues. As of June 30,
2006, the number of employees at ElringKlinger Group reached 3,160
following 3,034 one year ago.

Due to higher capacity utilization and an increasing share of new
products, ElringKlinger was able to increase operating earnings in
the first half of the year from EUR 39.7 million to EUR 48.0 million.
Growth of 20.9% was higher than the increase in sales revenues. In
the second quarter of 2006, ElringKlinger generated an operating
result of EUR 23.6 (20.6) million. The operating margin in the second
quarter reached 17.7% following 16.7% in the prior year. EBITDA
increased by 11.1% to reach EUR 67.1 (60.4) million in the first half
of the year, which includes a negative exchange rate effect of EUR
2.2 million. In the second quarter, EBITDA amounted to EUR 33.7
(30.9) million with negative exchange rate effects of EUR 0.5
million. In the first six months of 2006, EBIT including negative
exchange rate effects increased by 11.7% to EUR 45.8 (41.0) million.
In the second quarter, ElringKlinger increased its EBIT to EUR 23.1
(21.0) million, which corresponds to an EBIT margin of 17.3% (17.1%).

Earnings before taxes in the first six months of 2006 increased 14.5%
from EUR 38.0 million to EUR 43.5 million. Earnings before taxes in
the second quarter were up 11.8% reaching EUR 21.8 (19.5) million.
The decrease in the tax rate to 35.4% (38.2%) resulted in a
disproportionately high increase in consolidated net income in the
first half of 2006, which grew by 19.6% to EUR 28.1 (23.5) million.
The increase was comparable in the second quarter. In this period,
ElringKlinger increased its consolidated net income by 19.3% to EUR
14.2 (11.9) million. In the first half of 2006, consolidated net
income after minority interests amounted to EUR 26.1 (21.3) million,
which corresponds to an increase of 22.9% compared to the first half
of 2005. In the second quarter, consolidated net income after
minority interests increased by 23.0% to EUR 13.4 (10.9) million.
Earnings per share in the first half of the year in accordance with
IFRS increased by 22.9%, from EUR 1.11 to EUR 1.36. In the second
quarter, ElringKlinger’s earnings per share were up 23.0% from EUR
0.57 to EUR 0.70.

Investments in tangible and intangible assets and in real estate held
as a financial investment amounted to EUR 22.1 (22.3) million in the
first six months of 2006. Once again, this investment was fully
financed from net cash from operating activities, which increased
from EUR 28.7 million in the first six months of 2005 to EUR 45.3
million in the first half of 2006.

The order intake and order backlog both developed positively in the
first half of the year and in the second quarter. Order intake
increased by 16.9% to EUR 282.1 (241.3) million in the first six
months, and the order backlog was 16.1% higher at the end of the
second quarter reaching EUR 190.5 (164.1) million. For the 2006
financial year, the company is confident that it will achieve the
upper-end of its forecast range, which calls for an increase in sales
revenues between 5 and 7% and an increase in earnings after taxes by
10 to 12%. Series production ramp-ups of new products contribute
significantly to the company’s anticipated growth.

end of announcement euro adhoc 10.08.2006 07:25:54
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ots Originaltext: ElringKlinger AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Stephan Haas
Investor Relations Manager
Telefon: +49(0)7123 724-137
E-Mail: stephan.haas@elringklinger.de

Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
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