Grammer AG / Interim Report
11.11.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Grammer increases revenue in the first nine months
Revenue of more than one billion for the first time in 2008
2008 EBIT guidance unchanged
Amberg / Germany, November 11, 2008 Grammer AG generated Group revenue of
787.4 million in the first nine months of 2008; a growth of 7.1% over the
same period of the previous year. The stable order situation in the Seating
Systems division resulted in higher revenue and earnings in the third
quarter. The Automotive division continued to be impacted by the
restructuring and, additionally, by the lower demand from the automotive
industry.
Divisional earnings show significant differences
After nine months operative earnings before interest and taxes (EBIT) were
down on the previous year ( 26.9 million) at 23.5 million. In the third
quarter revenue in the Automotive division declined by 13 million
compared to the same period of the previous year to 149.6 million due to
the difficult economic situation. The Seating Systems division increased
revenue by 6% to 93.6 million, on the other hand (previous year: 88.4
million). EBIT were up 9% at 4.0 million (previous year: 3.7 million).
Several different factors reduced earnings in the Automotive division:
restructuring projects initiated in 2007, the ongoing weakness of the US
dollar and location cost development in Eastern European countries led to
segment earnings of - 2.5 million (previous year: - 0.2 million).
2008 revenue of more than one billion
In spite of the difficult situation in the global automotive industry,
Grammer expects total revenue in the current fiscal year to increase to
more than 1 billion. This assumption is based not only on a successful
first half-year in the Automotive division but especially on the positive
development of Seating Systems. In spite of the unfavourable general
economic conditions, executive management is expecting 2008 earnings to be
in line with the existing EBIT guidance.
Executive management anticipates a difficult environment for the Grammer
Group in 2009, particularly in the automotive division. Since there is much
greater uncertainty because of the international financial crisis and the
increased volatility of the currency and raw material markets, a forecast
cannot be made at the present time.
'Rapid implementation of the restructuring measurements now has top
priority. Personnel cuts, increases in efficiency and relocations to low
cost production locations will increase Group profitability in the medium
to long term', says CEO Dr Rolf-Dieter Kempis.
The measures initiated in fall 2007 to increase efficiency and
profitability will have a positive effect on earnings in 2009. Due to the
expected economic slowdown, further measures may be necessary in order to
counter the effects of the financial crisis.
Increase in the balance sheet total
At 525.2 million the Group balance sheet total at the end of the third
quarter was 5.6% higher than at the end of 2007. Total equity ( 184.2
million) was at the same level as in the previous year and the equity ratio
was about 35%.
Information to editorial staff:
The Grammer interim report January to September 2008 can be downloaded from
the company website www.grammer.com.
Company Profile
Grammer AG, Amberg, Germany is specialized in the development and
production of components and systems for automotive interiors as well as
driver and passenger seats for offroad vehicles (tractors, construction
machinery, forklifts), trucks, buses and trains.
Our Seating Systems division comprises the truck and offroad seat segments
as well as train and bus seating. In the Automotive division, we supply
headrests, armrests, center console systems and integrated child safety
seats to premium automakers and automotive system suppliers.
Grammer is represented in 17 countries worldwide with a workforce of more
than 9,300 employees across its 23 fully consolidated subsidiaries.
Grammer shares are listed in the SDAX segment of the German Stock Exchange,
and are traded on the Munich and Frankfurt stock exchanges, via the XETRA
electronic trading platform and on the OTC markets of the Stuttgart, Berlin
and Hamburg stock exchanges.
Grammer Investor Relations
Ralf Hoppe
+ 49 9621 662 200
investor-relations@grammer.com
DGAP 11.11.2008
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Language: English
Issuer: Grammer AG
Postfach 14 54
92204 Amberg
Deutschland
Phone: +49 (0)9621 66-0
Fax: +49 (0)9621 66-1000
E-mail: investor-relations@grammer.com
Internet: www.grammer.com
ISIN: DE0005895403, DE0005895403
WKN: 589540, 589540
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Stuttgart, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-News: Grammer AG: Interim Report 3rd Quarter 2008
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