DGAP-News: Grammer AG continues to grow
(firmenpresse) - Grammer AG / Key word(s): Quarter Results
09.11.2010 06:58
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Grammer AG continues to grow
Q3 Revenue and EBIT clearly higher than previous year
Outlook: 2010 revenue growth of roughly 20% over last year
Amberg, November 09, 2010 - Grammer AG, automotive supplier and
manufacturer of seating systems, today presented its interim report for the
first three quarters of 2010. The Company increased its consolidated
revenues by more than 30 percent to EUR 677.0 million (2009: 518.5). This
success was carried by the global economic recovery and substantial growth
in the automotive industry, along with numerous new production starts at
GRAMMER.
On the cost side, the restructuring measures implemented last year
continued to have a positive impact. Operating profit (EBIT) for Grammer
Group totaled EUR 23.0 million in the first nine months (2009: -24.7).
Compared to the significant losses last year, this equates to an earnings
improvement of nearly EUR 50 million. Earnings before taxes in the
nine-month period 2010 were EUR 13.6 million (2009: -30.5). After tax,
Grammer Group earned a total of EUR 8.9 million (2009: -31.2).
Looking at the third quarter of 2010, Grammer continued to build on the
improvement in sales from the second quarter. Group revenue increase from
July to September was up 31.5 percent year-over-year to EUR 232.5 million
(2009: 176.8). At the same time, earnings before interest and taxes (EBIT)
increased to EUR 8.1 million. As compared to the same quarter last year,
this represents a plus of EUR 13.3 million. Despite the burden of valuation
impacts in the financial result in the third quarter, pre-tax earnings rose
EUR 10.7 million over the prior-year quarter, to EUR 2.6 million (Q3 2009:
-8.1).
The positive developments in revenue and earnings prove the success of the
measures implemented for cost cutting and process optimization, as well as
the strategic development of the product portfolio.
Revenue and earnings improvement in both divisions
The growth during the current year has been carried by both divisions.
During the first nine months of the year, the Automotive division achieved
revenue of EUR 443.9 million (2009: 345.9). This corresponds to an increase
of 28.3 percent. The growth is attributable primarily to new product
launches and increasing demand from abroad for mid and premium-class
vehicles. As a result of the capacity adjustment measures, the Company
achieved an operating profit (EBIT) of EUR 15.0 million (2009: -8.3). For
the quarter, revenue in the Automotive segment climbed to EUR 147.7 million
(2009: 124.4). EBIT in the division was EUR 4.9 million in Q3 (2009: 0.8).
In the Seating Systems division, revenue between January and September was
up 35.6 percent to EUR 249.1 million (2009: 183.7). Positive order
situations in truck business in Brazil along with increasing offroad demand
in Europe mainly contributed to this performance. Here as well, the
structural measures continued to have a positive impact. After the
substantial losses in the period last year, the first nine months of 2010
generated an operating profit of EUR 12.0 million (2009: -8.1). In the
third quarter, revenue rose from EUR 57.8 million in prior-year period to
EUR 89.5 million - an increase of 54.8 percent year-over-year. Division
EBIT totaled EUR 5.2 million in Q3, which equates to an improvement of EUR
9.1 million.
Growth across allregions
Revenue was up in every region. In both the Overseas and Far East/Rest
regions, revenue growth reached 71 percent. GRAMMER AG was able to increase
Group revenue in Europe by 15 percent.
Company continues to invest in new products
From January to September 2010, a total of EUR 21.5 million was invested in
the two divisions of GRAMMER. Investment in the Automotive division
amounted to EUR 13.7 (2009: 13.6), which went mainly towards the building
up of production capacities in Schmölln (Germany) and Mexico. In the
Seating Systems division, a EUR 7.7 million (2009: 6.0) were invested
predominantly in production lines for the new generation of truck seats.
Higher number of employees
In the Automotive division, numbers of direct employees were increased,
especially at plants outside of Germany, as a result of the economic
recovery and the new project starts. In particular, employees were added at
the sites in China, Mexico and Serbia as a result of new production starts
and the increase in revenue. On the September 30 reporting date, Grammer
had 7,904 employees worldwide (2009: 7,265).
Further strengthening of equity
The positive results in the first nine months have meant an increase in
equity to EUR 164.5 million as of September 30, 2010. The higher amount of
total assets resulted in a more or less constant equity ratio of 29 percent
(2009: 30).
Coming off the extremely positive third quarter of 2010, the Company expect
the performance seen in the first nine months to continue into the final
quarter of the year. Early October, Grammer had already made the second
upward adjustments to its 2010 forecast.
Outlook for full-year 2010
The Company expects to see revenue growth of approximately 20 percent over
the previous year (2009: EUR 727.4 million). The operating profit margin
(EBIT margin) will total 3.2 to 3.5 percent for full-year 2010, assuming a
stable market and currency development.
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. 7,900 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
Phone: + 49 9621 662 200
investor-relations(at)grammer.com
09.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
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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(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 Hamburg, Düsseldorf, Berlin, Stuttgart
End of Announcement DGAP News-Service
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Datum: 09.11.2010 - 06:58 Uhr
Sprache: Deutsch
News-ID 32517
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