ElringKlinger AG Faces Non-Cash Losses Due to Sale of Group Companies

ElringKlinger AG has announced the sale of two Group companies to the Certina Group to adapt to changes in the automotive sector. The sale involves companies in Sevelen, Switzerland, and Buford, Georgia, USA. These sites focus on manufacturing thermal and acoustic shielding products. The decision aligns with ElringKlinger's strategy to invest in specific areas essential for remaining competitive.

This transaction is expected to close by the end of 2024, pending antitrust approvals. As a result, ElringKlinger will incur non-cash impairment losses in the mid to high double-digit million euro range. These arise from IFRS 5 reclassification, with figures being provisional and unaudited.

Following the sale, ElringKlinger has revised its 2024 financial forecast. It maintains an adjusted EBIT margin of around 5% but expects revenue and ROCE to fall below previous estimates. However, the company anticipates slightly positive operating free cash flow.