Grammer AG / Quarter Results
10.11.2009
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Group revenue stabilizes at a low level - restructuring and cost-cutting
having a positive impact
Turnaround in Q3 - Automotive positive
Sales difficulties persist in the Seating Systems division
Q3 Group-EBIT EUR -5.2 million (Q2 09: -10.9)
Amberg, November 10, 2009 - In the third quarter, GRAMMER AG Group revenue
totaled EUR 176.8 million, and was thus 26 % down from the prior-year level
and still affected by the effects of the worldwide financial and economic
crisis. For the first nine months of the year, GRAMMER AG has generated
Group revenue of EUR 518.5 million (2008: 787.4). As expected, EBIT is
negative after the first three quarters and, at EUR -24.7 million, is down
substantially from last year's level of EUR +23.5 million. Although Q3 EBIT
was once again negative at EUR -5.2 million, the considerable improvement
from the second quarter level of EUR -10.9 million indicates that the rapid
reaction of the company with restructuring measures is now having a
positive effect. The EUR 12.2 million in one-off expenses for implementing
the measures burdened results in the first nine months of the year.
In the context of capacity adjustment and cost-cutting, significant
staffing reductions have been carried out. At the reporting date on
September 30, 2009, GRAMMER AG employed 7,265 people worldwide, which is
2,070 fewer than the same date in 2008.
Turnaround in Q3 - Automotive positive
The Automotive markets seem to have overcome the worst of the crisis.
Revenue in GRAMMER AG's Automotive division fell to EUR 124.4 million
(2008: 149.6). However, as compared to the second quarter of 2009 (Q2 09:
116.8), this again represents an improvement in revenue. Despite weaker
revenue, the Q3 profit of EUR 0.8 million represents a significant EUR 3.3
million increase in earnings over the EUR 2.5 million loss in the same
quarter last year. This is attributable to the operational changes and
restructuring measures undertaken, which shows that the company's reaction
to the crisis was timely and effectively implemented.
Seating Systems: orders remain weak
After a substantial revenue decline in the second quarter, the weak order
situation in the Seating Systems division continued in the third quarter as
well. As compared to the previous year, revenue sank to EUR 57.8 million,
which equates to a decrease of 38 %. The performance of the division was
equally poor in all business segments. After the fall-off in the second
quarter, the unsatisfactory order situation in the truck business
continued, as did the substantially lower volume of demand in the offroad
segment. This situation was compounded by seasonal effects as the result of
the summer production stops among OEMs. Railway business also saw negative
development. Consequently, revenue in Seating Systems over the first nine
months of the year declined to EUR 183.7 million. At EUR -3.9 million (Q2
09: -5.4), EBIT was higher compared to the previous quarter. The
cost-cutting measures prevented a further decline.
Balance sheet
With total assets of EUR 490.3 million (December 31, 2008: 481.0), GRAMMER
AG had equity totaling EUR 147.7 million at the end of the third quarter
(December 31, 2008: 173.0). As a result of the year-to-date loss, the
equity ratio is down on the previous year at 30 % (December 31, 2008: 36).
Group investment in the first nine months totaled EUR 19.8 million (2008:
22.3). In the Automotive division, investments were almost on par with the
previous year at EUR 13.6 million (2008: 14.0), and largely went towards
the expansion of production capacities. In Seating Systems, investments
from January to September totaled EUR 6.0 million.
Outlook
With a view to the business situation in the first nine months of 2009 and
in light of the only gradual improvement of the economic environment, our
outlook for GRAMMER Group remains very subdued. Additional costs must be
reckoned as a result of the initiated restructuring measures and workforce
reductions, which will likely lead to a loss for the fiscal year as a
whole.
Note to the press:
The GRAMMER interim report January to September 2009 is available for
download from the Internet on 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 approx. 7,200
employees across its 24 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 AG Investor Relations
Ralf Hoppe
Tel. +49 (0)9621 662200
Email: investor-relations@grammer.com
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Language: English
Company: 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, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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DGAP-News: Grammer AG: Group revenue stabilizes at a low level - restructuring and cost-cutting having a positive impact
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