EANS-Adhoc: ElringKlinger raises sales by 43% in first half of 2010

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.


Dettingen/Erms, July 30, 2010 +++ The ElringKlinger Group
propelled its consolidated sales by 43.2% to EUR 383.7 (267.9) million in the first half of 2010. The continued recovery of the vehicle markets together with numerous product start-ups and the Group's strong positioning in Asia had a positive impact on sales performance. As a result of cost streamlining and higher capacity utilization in the area of production, earnings before interest
and taxes (EBIT) more than doubled compared to the crisis-hit
first half of 2009, reaching EUR 53.9 (22.6) million. After taxes and minority interests, the Group posted net income of EUR 34.2 (10.0) million.

Despite the relatively slow recovery of the truck market, the Original Equipment segment, which encompasses business activities with vehicle manufacturers, was able to lift sales revenue by
55.9% to EUR 289.6 (185.8) million in the first half of 2010. The Group achieved significant gains in Asia and South America in particular, but also in the US vehicle market, which recovered visibly following its slump a year ago. Buoyed by an upturn in foreign sales, revenue generated in the Aftermarket segment rose
by 13.5% to EUR 53.9 (47.5) million.

Demand continued to pick up during the second quarter of 2010. Consolidated revenue rose by 45.4% year-on-year to EUR 201.0
(138.2) million and also expanded further compared to the
previous quarter (EUR 182.7 million).

Further improvement in earnings situation despite one-off charges The ElringKlinger Group saw a continued improvement in its
financial performance during the first half of 2010. Alongside
the program of cost streamlining implemented during the economic crisis, higher utilization of production capacity had a positive effect on performance. This was driven by the significant upturn
in the volume of parts requested by car manufacturers as part of their production scheduling. At the same time, production
capacity for commercial vehicle components remained under-
utilized compared to the period prior to the market crisis.

The cost of sales rose by 29.9% in the first half of 2010, i.e.
at a slower rate than revenue growth, as a result of which the
gross profit margin edged up to 30.3% (23.2%). In total, hedging relating to alloy surcharges contained in prices charged for high-grade steel had a positive effect on the Group's operating result
in the first half of 2010, equivalent to EUR 0.1 million.

Due to the partial-retirement scheme for personnel employed in
the metal and electrical industry, as enshrined within the 2010 collective wage agreement for this sector, in the first quarter
of 2010 the Group had to allocate partial-retirement provisions
for the entire term of the agreement until the end of March 2012, which resulted in a non-recurring increase in staff costs of EUR
1.8 million. In addition, provisions in connection with employee benefits agreed for the years 2008 and 2009, totaling EUR 2.4 million, were recognized in the first quarter of 2010. These exceptional items, in combination with the termination of short-time work at the beginning of the year, contributed to higher
staff costs and therefore also affected the Group's operating result.

The Group spent EUR 21.4 (19.1) million on research and
development in the first six months of 2010, 12.0% more than in
the same period a year ago. The company was able to secure EUR
1.4 million in public-sector funding for projects relating to
fuel cell and battery technology. In the first half of 2010, ElringKlinger received its first series production contract for
cell contact systems used in lithium-ion batteries, which
represents a major reference project for the company.

EBIT benefits from higher capacity utilization
Although EBIT was adversely affected by negative foreign currency effects equivalent to EUR 3.7 million, it was nevertheless
propelled upwards by EUR 31.3 million to EUR 53.9 (22.6) million
in the first half of 2010. Despite the above-mentioned
exceptional factors, the EBIT margin reached 14.1% (8.4%) in the first half of 2010. Excluding the non-recurring effects on
earnings from commodity price hedging, the increase in partial-retirement provisions as well as costs in connection with
employee benefits, the EBIT margin stood at 15.1%. The further upturn in revenue and the tangible improvement in capacity utilization in the majority of ElringKlinger's business divisions
as a result of this forward momentum also contributed to a marked increase in EBIT in the second quarter of 2010. Outpacing revenue growth, it doubled to EUR 31.6 (15.8) million during this period, which includes negative foreign currency effects of EUR 2.7

Net finance cost stood at minus EUR 10.1 (-5.3) million in the
first half. In this context, it should be noted that the first
half of 2009 had benefited from positive foreign currency effects equivalent to EUR 2.0 million in total. In the first half of
2010, by contrast, the remeasurement at the end of the reporting period of liabilities relating to the financing of
ElringKlinger's acquisition of the SEVEX Group, denominated in
Swiss francs, resulted in finance costs of EUR 6.0 million (EUR
3.8 million in the second quarter), which negatively impacted the net finance result and EBIT. In the second quarter net finance
cost amounted to minus EUR 5.6 (-5.0) million.

In total, earnings before taxes rose to EUR 47.6 (15.3) million,
up EUR 32.3 million compared to a sluggish first half in 2009. In the second quarter of 2010, earnings before taxes surged by
140.3% year on year to EUR 28.6 (11.9) million.

EUR 34 million in net income after minority interests in first
half of 2010
Due to the stronger earnings performance in particular of those Group companies that operate with below-average tax rates, the income tax rate fell to 24.9% (29.4%). Thus, the ElringKlinger
Group achieved net income after minority interests of EUR 34.2 (10.0) million in the first half of 2010. In the second quarter
of 2010, net income after minority interests rose by EUR 12.6 million year-on-year to EUR 20.6 (8.0) million. This corresponds
to earnings per share of EUR 0.59 (0.17) for the first six months
of 2010. In the second quarter, earnings per share rose to EUR
0.36 (0.14).

Forecast for 2010 again revised upwards
Order intake continued its gradual recovery, rising to EUR 244.1 million in the second quarter of 2010, up from a weak, crisis-hit base of EUR 148.8 million in the same period a year ago. At the
same time, incoming orders were also up on the figure recorded in the first quarter of 2010 (EUR 200.5 million).

Based on the assumption that vehicle markets will continue to recover and that economic conditions will remain stable, and in
view of the positive performance of the first half of 2010, ElringKlinger has again revised upwards its revenue and earnings targets for fiscal 2010 as a whole. The Group currently
anticipates that sales revenue will rise to EUR 690 to 710
million (previously EUR 637 to 655 million). This figure does not include the proportionate contribution from the planned takeover
of the cylinder-head and exhaust system gasket business of Freudenberg Group, which would add approx. EUR 10 million pro
rata temporis to ElringKlinger's consolidated revenue as from the planned completion of takeover in the fourth quarter of 2010. Earnings before interest and taxes (EBIT) are expected to rise faster than revenue to between EUR 90 and 95 million (previously between EUR 76 and 79 million).

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.de WWW: http://www.elringklinger.de sector: Automotive Equipment ISIN: DE0007856023 indexes: MDAX, Classic All Share, Prime All Share

stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin, Düsseldorf, München, regulated dealing: Stuttgart language: English

Rückfragen & Kontakt:

For further information, please contact:
ElringKlinger AG
Corporate Communications/Investor Relations
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen/Erms
Phone: +49 (0)7123 724-137
E-mail: stephan.haas@elringklinger.de