ElringKlinger sees net up 10 pct as diesel booms

STUTTGART, Germany, Mar 29 (Reuters) German speciality automotive supplier ElringKlinger expects to boost 2006 net profit by 10-12 per cent amid booming markets in Asia, it said on Wednesday, sending its shares to all-time highs.

It aims to increase sales by 5-7 per cent to more than 500 million euros (0 million), Chairman Stefan Wolf told reporters, as it also enjoys solid demand for parts for diesel engines.

''We already see from how things went in the last three months that we will reach our target,'' he said.

ElringKlinger shares rose 3.4 per cent to 39 euros by 1200 GMT (1730 IST) after earlier touching an all-time high of 40.15.

Wolf said the company planned to build a factory in India this year to capture growth there and would not rule out acquisitions in Japan to strengthen its presence in Asia, which now accounts for 9 per cent of group sales.

The group makes cylinder-head and speciality gaskets, cover modules and shielding parts for powertrains and exhaust systems.

It also tests engines and makes high-grade plastic products.

''The shift going on from petrol to diesel, especially in the United States, is certainly going to help us,'' Wolf said.

ElringKlinger's 2005 net profit rose 15.3 per cent to 46.6 million euros on sales up 3.3 per cent to 474.6 million despite what Wolf called a difficult market environment.

The company proposed raising its dividend to 1 euro per share from 88 cents.

REUTERS SD DB1944