DGAP-News: Grammer AG: Positive trend at GRAMMER continues in the first quarter of 2010
(firmenpresse) - Grammer AG / Quarter Results
11.05.2010 06:55
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Positive trend at GRAMMER continues in the first quarter of 2010
Group revenue increases to EUR 203.0 million
Significant improvement of Group EBIT to EUR 3.5 million
Both divisions reporting positive operating profit
Amberg, May 11, 2010 - GRAMMER AG, leading automotive supplier and
manufacturer of seating systems, continued to see positive development in
the first quarter of 2010. As a result of the economic recovery and new
production starts, revenue increased by 18 percent as compared to the first
quarter of last year, to EUR 203.0 (2009: 171.7). Whereas in Q1 2009 Group
EBIT was negative at EUR -8.6 million, the stable revenue base and positive
effects from the restructuring program helped GRAMMER to a positive Group
EBIT of EUR 3.5 million in the first quarter of 2010. This equates to an
increase of EUR 12.1 million in operating profit.
Growth in Automotive division
Accelerating automotive market demand and new production starts led to a 30
percent increase in revenue for the Automotive division to EUR 136.3
million. Thus, the positive trend that began as early as the third quarter
of 2009 continued. The Company's EBIT in the Automotive division grew by
EUR 9.7 million over the prior-year quarter to EUR 3.7 million (2009:
-6.0). This substantial rise is attributable largely to the promptly
implemented measures to address the crisis and the positive revenue
development boosted by near product start-ups.
Stabilization in the Seating Systems division
The Seating Systems division, which was hit later by the effects of the
economic crisis and the related fall-off in demand than the Automotive
division, saw some improvement in the first quarter of 2010. A positive
order situation in Truck business, especially in Brazil, and stable Offroad
demand led to a recovery in the situation of the segment. Revenue in
Seating Systems was up from EUR 69.5 million last year to EUR 71.8 million
in 2010. Here as well, the restructuring measures have taken hold, with the
division generating a profit of EUR 0.9 million from January to March
(2009: +1.2) - the first positive result since one year ago.
Regional differences in revenue performance
Group revenue was higher year-over-year in all regions. In Europe, revenue
rose from EUR 129.8 million to EUR 133.8 million, which is primarily
attributable to new production starts in the Automotive division. In the
Overseas region, revenue was up by EUR 12.8 million. Moreover, business was
extremely good in the region Far East/Rest of World, where increases of
more than 100 percent were generated. This improvement to EUR 28.5 million
is mainly based on the favorable revenue development seen by both divisions
in China.
Headcount
The number of employees in the Group totaled 7,617 on March 31, 2010, 156
fewer than at the same date of last year. The Automotive division had a
workforce of 4,804 employees on the reporting date, while Seating Systems
employed 2,623 and Central Services had 190 employees. Since the end of
last year, temporary workers have been hired in Mexico, Serbia and China as
a result of increased activities and new production starts in these
countries.
Targeted investment in new products and markets
Investment volume in the first quarter of 2010 was down only slightly on
the prior-year level, at EUR 8.4 million. In the Automotive division,
nearly 55 percent, or EUR 4.6 million, went to the building of production
capacities in Schmölln and Mexico. Investment in the Seating Systems
division from January to March totaled EUR 3.8 million for set-up of
production of the new generation of truck seats.
Balance sheet and financial situation still solid
Equity within GRAMMER Group amounted to EUR 154.4 million on March 31, 2010
(December 31, 2009: 151.0). The equity ratio, however, remained at 30
percent. In light of the business developments, net financial liabilities
on March 31, 2010 were higher year-over-year, at EUR 114.5 million.
Outlook 2010
After a difficult year in 2009, GRAMMER Group is expecting moderate revenue
growth in the single digits for the current fiscal year. Based on the
present state of business as well as the somewhat improved market
indicators, and thanks to the effects of the implemented capacity
adjustment and fixed cost reduction measures, the Company is anticipating
positive growth and a return to profitability in 2010.
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 andtrains. 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 isrepresented in 17
countries worldwide with a workforce of approx. 7,600 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 AG
Investor Relations
Ralf Hoppe
+49 (0)9621 66 2200
investor-relations(at)grammer.com
11.05.2010 06:55 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
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(at)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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Datum: 11.05.2010 - 06:55 Uhr
Sprache: Deutsch
News-ID 20606
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