DGAP-News: Grammer AG: Growth trend continues
(firmenpresse) - DGAP-News: Grammer AG / Key word(s): Quarter Results
Grammer AG: Growth trend continues
09.11.2011 / 06:55
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Grammer AG: Growth trend continues
Group revenue EUR 810.4 million in the first nine months
Group EBIT increases in the first nine months to EUR 36.0 million
Amberg, November 09, 2011 - With positive results for the third quarter of
2011, Grammer AG continues its growth trend this year. The automotive
supplier and manufacturer of seating systems for commercial vehicles saw
revenue in the first nine months increase by 19.7 percent to EUR 810.4
million (2010: 677.0). Group EBIT was up 56.5 percent to EUR 36.0 million
(2010: 23.0). The EBIT margin improved to 4.4 percent (2010: 3.4). Net
profit after tax in the nine-month period was EUR 15.8 million (2010: 8.9),
77.5 percent higher than the prior-year period.
As in the preceding quarters, the positive earnings performance in the
third quarter of 2011 was driven by good development in all segments of the
vehicle industry worldwide. Group revenue in Q3 beat the already strong
prior-year quarter by 17.4 percent at EUR 272.9 million (2010: 232.5).
Group EBIT improved to EUR 10.2 million (2010: 8.1) and after tax profit in
the quarter was higher than Q3 2010 at EUR 6.1 million (2010: 1.0). Despite
full order books and higher revenue, the closing of the Immenstetten plant,
near Amberg/Germany, along with launches of new major projects and
unfavorable exchange rate developments prevented an even better
third-quarter result.
Automotive division benefits from new production starts and booming export
Grammer Group's Automotive division generated 14.5 percent, or EUR 64.2
million, more revenue in the first nine months of 2011 than in the same
period last year, at EUR 508.1 million (2010: 443.9). In the third quarter,
revenue continued to increase, even given the strength of the comparable
period in 2010. Total revenue in the third quarter of 2011 reached EUR
167.1 million (2010: 147.7), an increase of 13.1 percent. Responsible for
the pleasing revenue development was the good performance of automotive
markets in Europe and the US, which led to strong sales especially for
upper mid-size and premium vehicles. Moreover, the Automotive division was
a beneficiary of the ongoing boom in export markets.
Operating profit improved to EUR 18.9 million in the nine-month period
(2010: 15.0). In the third quarter, operating profit declined slightly to
EUR 3.9 million (2010: 4.9), due to the plant shutdown in Immenstetten,
near Amberg/Germany, production ramp up's and unfavorable exchange rate
developments - especially in August and September.
Strong growth solidified in the Seating Systems division
In the third quarter of 2011, the positive trend enjoyed by the Seating
Systems division over the preceding quarters continued in impressive
fashion. During the January to September 2011 period, segment revenue
improved 29.4 percent to EUR 322.4 million (2010: 249.1). Compared to the
third quarter of 2010, Grammer achieved revenue growth of 25.1 percent to
EUR 112.0 million (2010: 89.5). In addition to the increase in revenue, the
cost and capacity rationalization offensive in the offroad segment
completed in 2010 is now serving to support earnings, so that operating
profit in the nine month period rose to EUR 24.2 million, compared to EUR
12.0 million in the comparable period. The growth in earnings inthe third
quarter of 2011 was also impressive, reaching a total of EUR 7.7 million
(2010: 5.2) despite the launch of major projects.
Strong growth in demand for offroad vehicles in Europe, Overseas and Asia
and stable sales in the Brazilian truck market were major contributors for
this development. The strong improvement over the prior-year period,
especially given the strength of Q3 2010, can be seen as a very positive
signal. Moreover, the acquisition of specialist for electronic components,
EiA Electronics, has contributed to revenue and earnings since August.
Group financing restructured
During the quarter under review, the company re-aligned its financing
structure. The restructuring of group financing has decisively improved the
balance sheet structure and significantly aligned the maturities of
liabilities. The transaction included the early repayment of the previous
syndicated loan agreement totaling EUR 110 million that was set to expire
originally in August 2013. The syndicated loan was replaced with bilateral
working credit facilities. At the same time, a new debenture bond in the
amount of EUR 60 million was placed successfully and a tranche of the
existing debenture bond entered early into prolongation.
GRAMMER Group's equity on September 30, 2011 was considerably higher than
the 2010 level at EUR 202.5 million (09/30/10: 164.5), as a result of
positive business performance and successful capital increase in April. The
equity ratio as of September 30, 2011 rose to 33 percent (09/30/10: 29).
Net financial liabilities on September 30, 2011 totaled EUR 115.1 million,
10.0 percent lower year-over-year. Accordingly, the net gearing was 21
percent lower at 57 percent.
Comprehensive investment with a focus on Seating Systems
Investments in property, plant and equipment during the first nine months
of 2011 were up year-over-year to EUR 24.6 million (2010: 21.5). From
January to September, capital was invested primarily in the Seating Systems
division for setup of suspended seat production. Investment in the division
totaled EUR 15.7 million (2010: 7.7). In the Automotive division,
investment amounted to EUR 8.6 million (2010: 13.7) from January to
September 2011.
Positive order situation necessitates more employees
On September 30, 2011, there were a total of 8,644 people employed within
Grammer Group. This equates to a 9.4-percent increase year-over-year. The
number of people employed in the Automotive division increased slightly
from 5,021 last year to 5,128. As of September 30, 2011, the Seating
Systems division employed a total of 3,334 people (09/30/10: 2,701). Sales
growth and strong orders in both divisions necessitated increases in
personnel numbers, especially at production plants outside of Germany.
Outlook for full-year 2011
For full-year 2011, the Grammer AG Executive Board is anticipating revenue
growth of more than 10 percent to more than EUR 1 billion and an EBIT
margin of roughly 4.4 percent.
Still, developments in commodity and foreign exchange markets, as well as
the current order situation characterized by short lead times and
volatility represent serious risk factors, which bear close monitoring to
allow rapid reaction in the event of any changes.
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. In the Automotive
division, we supply headrests, armrests, center console systems and
integrated child safety seats to premium automakers and automotive system
suppliers. Our Seating Systems division comprises the truck and offroad
seat segments as well as train and bus seating. Grammer is represented in
18 countries worldwide with a workforce of approx. 8,600 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.
Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
investor-relations(at)grammer.com
End of Corporate News
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Language: English
Company: Grammer AG
Postfach 14 54
92204 Amberg
Germany
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
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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