EANS-Adhoc: ElringKlinger posts revenue growth of 31% in third quarter of 2011 - Operating result boosted by 71% due to non-recurring income

--------------------------------------------------------------------------------
ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

9-month report

10.11.2011

Dettingen/Erms (Germany), November 10, 2011 +++ The ElringKlinger
Group increased its revenue by 30.2% to EUR 763.2 (586.2) million in
the first nine months of 2011. The year-on-year surge in revenue was
driven by continued buoyancy in the demand for cars within the
majority of sales regions around the globe as well as new product
start-ups in the Original Equipment segment and first-time revenue
contributions from the acquisitions made over the course of 2011. The
recently acquired flat metal gaskets business of the Freudenberg
Group and the Swiss exhaust treatment specialist Hug contributed EUR
58.9 million to Group revenue in the first nine months of 2011.
ElringKlinger generated non-recurring other operating income of EUR
22.7 million in the third quarter from the disposal of its
Ludwigsburg industrial park, which is not part of the Group's core
business. Consequently, the Group's operating result increased to EUR
124.0 (91.6) million in the period from January to September 2011.
After taxes and minority interests, net income was propelled upward
to EUR 80.6 (53.9) million. In the third quarter of 2011, the
ElringKlinger Group saw its revenue grow by 30.6% to EUR 264.4
(202.5) million. Its operating result for this period stood at EUR
58.0 (34.0) million.

Despite the gradual slowdown in global vehicle production over the
course of the year, ElringKlinger maintained its forward momentum
also in the third quarter, expanding revenue by EUR 10.0 million
quarter on quarter to EUR 264.4 million. Growth was driven not only
by the continued upturn in business throughout Asia but also by
strong domestic demand. Many domestic customers curtailed their
factory breaks during the summer vacation period. Revenue generated
within the Group's most buoyant segment in terms of sales, Original
Equipment, rose by 36.1% to EUR 209.2 (153.7) million. Excluding the
contributions made by recent acquisitions, segment revenue increased
by 20.6%, well beyond the growth rate achieved by the global car
markets.

Integration of recently acquired Freudenberg and Hug entities

The flat gaskets business acquired from the Freudenberg Group
contributed EUR 13.0 million to Group revenue in the third quarter of
2011. The earnings performance of the former Freudenberg companies,
which have been included in the scope of consolidation since January
1, 2011, continued to improve when compared to the previous quarters.
However, earnings before taxes - including the negative effect of the
purchase price allocation equivalent to EUR 0.1 million - were still
just within negative territory at minus EUR 0.1 million. The
operating margins achieved by both the German and the Italian
production site in the third quarter were already well above par.

The Hug Group, Switzerland, in which ElringKlinger acquired a
majority interest, was included within the Group's scope of
consolidation effective from May 1, 2011. The Swiss exhaust treatment
specialist contributed EUR 10.8 million to Group revenue in the third
quarter of 2011. The strength of the Swiss franc had an adverse
effect on earnings at an operating level. This was compounded by the
negative effect of the purchase price allocation, equivalent to minus
EUR 0.6 million. Regardless of these factors, earnings before taxes
posted by Hug were just within positive territory. In addition to
automating existing production processes, ElringKlinger is currently
focusing in particular on optimizing cost structures within the Hug
Group in response to currency risk.

Non-recurring income from sale of Ludwigsburg industrial park

In the third quarter of 2011, ElringKlinger recorded a non-recurring
gain of EUR 22.7 million on the disposal of its Ludwigsburg
industrial park; this gain was accounted for in other operating
income.

Adjusted EBIT totals EUR 37.5 million in Q3

The gross profit margin achieved within the first nine months of 2011
stood at 27.6% (30.7%). The acquisitions, whose profit margins as yet
are significantly lower, had a dilutive effect on the Group's profit
margin, equivalent to approx. 1.3 percentage points. Furthermore,
ElringKlinger incurred substantial start-up costs for the expansion
of the new E-Mobility division. In the second and third quarters,
several domestic customers increased at short notice the just-in-time
volumes of components required as part of their production
scheduling, as a result of which ElringKlinger was forced to
introduce overtime and extra shifts. This, in turn, contributed to
higher costs at production level. Despite this situation, the
ElringKlinger Group managed to strengthen its operating result by
35.4% to EUR 124.0 (91.6) million in the first nine months of 2011.
In the third quarter of 2011, ElringKlinger recorded an operating
result of EUR 58.0 (34.0) million. Adjusted for one-off income from
the sale of the Ludwigsburg industrial park, the operating result
stood at EUR 35.3 million in the third quarter. Thus, the
third-quarter figure was higher than that of Q2 2011, which had
produced an operating result of EUR 33.3 million. Adjusted for the
non-recurring effects outlined above, the operating margin stood at
13.4% (16.8%) in the third quarter, compared to 13.1% in the second
quarter of 2011. Eliminating the dilutive effect on earnings
associated with the acquisition of Freudenberg and Hug operations,
the operating margin of ElringKlinger's core business was 14.8% in
the third quarter.

Due to foreign exchange losses of EUR 2.3 million, earnings before
interest and taxes (EBIT) - this figure includes foreign exchange
gains and losses - fell short of the operating result in the first
nine months of 2011, rising by 42.0% to EUR 121.7 (85.7) million.
Excluding one-off income from the sale of the industrial park, as
outlined above, EBIT rose by 15.5% to EUR 99.0 million. The positive
foreign exchange effects were equivalent to EUR 2.2 million in the
third quarter. Compared to the previous quarters, the CHF-denominated
loan with which ElringKlinger AG had financed the purchase
consideration payable in connection with the acquisition of the
Swiss-based SEVEX Group back in 2008 no longer had an adverse effect
on earnings in the third quarter of 2011. Group EBIT amounted to EUR
60.2 (31.7) million. Adjusted for non-recurring income, as discussed
earlier, ElringKlinger increased its third-quarter EBIT by 18.3% to
EUR 37.5 million.

Earnings before taxes up 48% after nine months

Net finance costs fell to EUR 11.6 (15.5) million in the first nine
months of 2011, supported by less pronounced foreign exchange losses
compared to the same period a year ago as well as lower interest
costs. In the third quarter of 2011, the direction taken by foreign
exchange rates contributed significantly to the reduction in the
Group's net finance costs to EUR 0.8 (5.4) million. Against this
backdrop, Group earnings before taxes totaled EUR 112.3 (76.1)
million after the first nine months of 2011, which corresponds to a
year-on- year increase of 47.6%. In the third quarter of 2011,
earnings before taxes rose by a total of EUR 28.7 million to EUR 57.2
(28.5) million, buoyed also by income from the divestment of the
Ludwigsburg industrial park.

Compared to the same period last year, the Group's income tax rate
increased slightly to 26.1% (25.9%) in the first nine months of 2011.
On this basis, the ElringKlinger Group posted net income after
minority interests (profit attributable to shareholders of
ElringKlinger AG) of EUR 80.6 (53.9) million. After taxes and
minority interests of EUR 1.2 (1.0) million, net income for the third
quarter of 2011 was EUR 41.1 (19.7) million. Earnings per share (EPS)
totaled EUR 1.27 (0.94) in the first nine months of 2011. For the
third quarter of 2011, EPS stood at EUR 0.65 (0.34).

Order intake up markedly year on year - Forecast confirmed

Although order intake for the third quarter failed to match the
record-breaking level achieved in the second quarter of 2011, it
nevertheless rose significantly compared to the third quarter of
2010, up 20.1% to EUR 257.8 (214.7) million. Order backlog within the
ElringKlinger Group totaled EUR 440.9 (315.3) million at the end of
the third quarter. This corresponds to a year-on- year increase of
39.8%.

Based on solid order intake and the continued stability of the
economy as a whole, the ElringKlinger Group retains its outlook of
organic growth in revenue by 12 to 14% for 2011. This will be
complemented by revenue contributions of around EUR 80 million in
total from the consolidation of the metal flat gaskets business
acquired from the Freudenberg Group as well as the Swiss-based Hug
Group, as a result of which Group sales revenue for fiscal 2011 is
expected to reach EUR 970 to 985 million. The acquisition of the
Hummel Group, which came into effect on October 24, 2011, is not
expected to contribute significantly to Group revenue and earnings
over the remainder of 2011. The Group's operating margin in 2011 will
be temporarily diluted primarily due to the operating margins of the
recent acquisitions, which are as yet considerably lower than the
Group average, as well as the purchase price allocations. Despite the
dilutive effects attributable to the acquisitions, significant
start-up costs for the new E-Mobility business and much higher
commodity prices, Group EBIT for the full year 2011 is expected to
rise by 15 to 25%. Additionally, the Group will account for
non-recurring other operating income of EUR 22.7 million from the
sale of its Ludwigsburg industrial park.

The full financial report of ElringKlinger AG for the third quarter
and the first nine months of 2011 can be accessed at
www.elringklinger.com

Further inquiry note:
ElringKlinger AG
Investor Relations / Corporate Communications
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-137
E-Mail:stephan.haas@elringklinger.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

issuer: ElringKlinger AG
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
phone: +49(0)7123 724-0
FAX: +49(0)7123-7249000
mail: info@elringklinger.com
WWW: http://www.elringklinger.com
sector: Automotive Equipment
ISIN: DE0007856023
indexes: MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Düsseldorf, München, regulated dealing: Stuttgart
language: English