ElringKlinger AG Business Report FY ended Dec. 2017

Financial Overview

(in million EUR)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of Change (%) Factors
Net Sales


1,557.4 6.8 1)
EBITDA 238.4 231.2 3.1 -
Original Equipment segment
Sales 1,382.4 1,294.3 6.8 2)

1) Net Sales
-In the fiscal year ended December 31, 2017, the Company’s net sales increased by 6.8% to EUR 1,664.0 million. Excluding currency and acquisition effects, the Company had organic growth of 8.1%. Exchange rate movements exerted some downward pressure on Group revenue in the period under review. The first-time inclusion of hofer powertrain products GmbH, Nutringen, Germany, which was acquired in 2017, contributed revenue of EUR 5.6 million in the period under review.

2) Original Equipment segment sales
-Sales in the Company’s Original Equipment segment increased by 6.8% in the fiscal year ended December 31, 2017 to EUR 1,382.4 million, which ElringKlinger benefiting primarily from growing customer demand for lightweight components made of high-performance plastics. This is illustrated clearly by the sales perfomance of the Lighweighting/Elastomer Technology division, which exceeded the prior-year figure by 12.3%. The Specialty Gaskets division also produced growth that was above the Group average. This is due to the trend toward downsizing for current generations of engine. As a result of this, vehicles tend to be equipped with a larger number of specialty gaskets. The Cylinder-head Gaskets division saw slight year-on-year growth.


-The Company announced that it has secured a high-revenue contract within the area of battery technology from Munich-based company Sono Motors to develop and produce complete battery systems for a fully electric solar vehicle. The purchase order covers a total volume of EUR several hundred million over a period of eight years. The battery system supplied by ElringKlinger is to allow an actual range of 250 km. The start of series production is scheduled for the second half of 2019. It will be based on a 48 V module that is capable of producing aggregate system voltages of up to 800 V. (From a press release on May 9, 2018)

-The Company announced it has received an order from electric vehicle manufacturer Byton for the supply of cockpit cross-car beams to be used in the company's premium SUV model. Both parties are also targeting to integrate the same lightweight technology into other, future Byton models. Development work for this project will be conducted at the technical centers in Silicon Valley and Southern Germany. Starting 2019 the components will be produced at ElringKlinger's plant in Suzhou, China. In total, the contract covers a double-digit million euro turnover over a period of six years. (From a press release on January 30, 2018)

Business Plan

- The Company announced that it will now introduce a dedicated Management Board function for electromobility. Theo Becker, former Chief Operating Officer of the ElringKlinger Group, will assume overall responsibility for this newly created function. The new function will focus on the areas of battery technology and fuel cell technology. These areas had already been part of his remit as a member of the Management Board. In creating a new Management Board role dedicated to e-mobility, the company has emphasized the importance of this field of business to ElringKlinger's future operations. (From a press release on March 23, 2018)

New Plant

-The Company announced that it plans to expand its U.S. operations to Indiana by establishing a 60,000 square-foot manufacturing facility in Ft. Wayne, Indiana, creating up to 150 new jobs by 2022. The new facility, which will be equipped with manufacturing, R&D, and information technology equipment, will begin production of aluminum acoustic and thermal shielding systems for passenger cars and commercial vehicles in September. The new site will be the company’s fifth operations center in the U.S. and first facility in Indiana. ElringKlinger’s other U.S. facilities are in Georgia, Michigan and California. (Indiana Economic Development Corp. release on March 15, 2018)

Joint Ventures

-The Company announced that it has reached an agreement with Sichuan Chengfei Integration Technology Co., Ltd. (CITC), China, for the battery technology. The agreement initially runs for a period of ten years up to December 31, 2027. The framework agreement stipulates the establishment of a joint venture entity for the development, production, and distribution of lithium-ion battery modules for the automotive market in Asia, Europe, and the United States. The joint venture brings together complementary operations of the two parties to the contract: while CITC is responsible, via its subsidiary China Aviation Lithium Battery Co., Ltd. (CALB), for the electrochemical constituents of the cell, ElringKlinger will be contributing the remaining components of the module, such as highly innovative cell contact systems and cell housings. (From a press release on November 27, 2017)

R&D Expenditure

(in million EUR)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
Overall 75.9 74.8 71.2
% of Sales 4.6% 4.8% 4.7%

Note: Figures include capitalized research and development costs.

R&D Structure

-As of December 31, 2017, the Company has 597 employees working in research and development.

Product Development

-The Company's lightweighting activities and developments included the following:

  • Organo sheets: A lightweight fiber-reinforced composite made of woven fibers embedded in a thermoplastic matrix which provides improved resilience and rigidity; Can be used in vehicle body, battery mounting, and seat pan applications. Series production is expected to begin in 2017.
  • Lighter underbody paneling material: A material based on compressed textiles which reduces noise, vibration levels, air resistance, and improves the vehicle’s aerodynamic performance.

-The Company's activities and developments involving E-Mobility included the following:

  • Battery cells: The Company is working with a Chinese partner in developing cells for a battery module for electric vehicles.
  • Fuel cells: The Company is engaged in long-term projects in the development of both low-temperature proton exchange membrane fuel cells (PEMFC) and high-temperature solid oxide fuel cells (SOFC).

-The Company announced that has chosen the motto "e-xperience mobility" to showcase its extensive product range at the IAA 2017. Supplying solutions for all drive systems currently available, the company will be focusing in particular on innovative battery and fuel cell technologies, a newly developed electric drive unit, and lightweight plastic components used in various fields of application. It will showcase an e-axle (electric drive unit) developed along with hofer powertrain, combining power electronics, transmission, and electric motor. ElringKlinger will be showcasing an aggregate energy storage system that consists of several battery modules and is enclosed in a plastic housing with an integral pressure equalizing element. It will display a PEM fuel cell stack containing 300 cells. Featuring metallic bipolar plates, the fuel cell has an output of 63 kWeL. The company will be showcasing a door carrier module and a side impact protection unit made of organo sheets at the IAA. (From a press release on September 6, 2017)


-In 2017, the Company applied for a total of 69 new patents.

Capital Expenditure

(in million EUR)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
Overall 166.2 183.1 189.8

-More than 94% of the Company’s capital expenditures in the fiscal year ended December 31, 2017 was invested in the Original Equipment segment.

Investments in Germany

-The Company’s investment projects in Germany during the fiscal year ended December 31, 2017 included the following:

  • Construction of a new logistics center for the Lightweighting/Elastomer Technology Division in Dettingen, Germany; work began in July 2016

Investments outside Germany

-The Company’s investment projects outside Germany during the fiscal year ended December 31, 2017 included the following:

  • Initialization of a new plant in Kecskemet, Hungary, with construction to begin in 2017