Grammer AG / Quarter Results
08.05.2008
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 revenues in the first quarter
Restructuring program making solid progress
Amberg, May 8, 2008 - Thanks to a solid order backlog, Grammer AG recorded
an increase in revenues in both of its divisions during the first quarter
of financial year 2008. The company simultaneously pressed ahead with its
restructuring measures as planned, generating an operating result according
to expectations despite restructuring expenses.
Grammer increased its Group revenues by 12.5 percent to 267.4 million euros
during the first three months of the financial year (previous year: 237.7).
The Seating Systems and Automotive divisions benefited from a favourable
development of incoming orders, especially in Europe as well as in North
and South America. As expected, earnings before interest and taxes (EBIT)
amounted to 8.2 million euros, compared with 10.1 million euros for the
same period of the previous year. Adjusted for restructuring expenses
totalling 1.5 million euros, EBIT was nearly unchanged from the same
quarter of the previous year. The profitability of the divisions developed
differently: Whereas Seating Systems considerably boosted its EBIT over the
same period of the previous year, the EBIT of the Automotive division was
impacted by foreign currency developments as well as labour and cost
increases, especially at the Eastern European locations.
Dr. Rolf-Dieter Kempis, CEO of Grammer AG, stated: 'Both divisions
benefited from a high level of demand for Grammer products. The Seating
Systems business is highly profitable, whereas in the Automotive division
we are in the process of implementing our restructuring program. Although
were making good progress, as we indicated, the full impact will be
noticeable not until 2009. Overall, we are moving in the right direction,
and we continue to expect to slightly surpass the previous years profit
for the year as a whole.'
Earnings before income taxes amounted to 4.2 million euros, compared with
7.6 million euros for the first quarter of the previous year. Net income
for the period amounted to 2.3 million euros (previous year: 3.6).
Revenues increase in Europe and America
The Europe as well as the North and South America regions were the main
contributors to the revenues growth. Revenues in Europe increased by 7.9
percent to 199.1 million euros (previous year: 184.5). Following the
start-up of production, the North and South America region attained its
full capacity, boosting its revenues by 56.5 percent to 40.6 million euros
(previous year: 25.9) despite the weak dollar exchange rate. In Asia,
revenues remained stable compared to the same period of the previous year.
Profitable growth in the Seating Systems division
The Seating Systems division remained a significant force for growth and
profitability during the first three months of the financial year. Grammer
benefited from its focus on high-margin niche products, with divisional
revenues increasing by 15.4 percent to 102.0 million euros (previous year:
88.4). This was primarily a result of a solid order backlog in the offroad
segment as well as in the truck market. Developments remained stable in the
rail and bus segment. Through additional improvements in productivity and a
high level of capacity utilisation, this division realized an EBIT of 10.5
million euros and thereby an EBIT margin of 10.3 percent.
Automotive division affected by ongoing restructuring measures
The Automotive division also recorded an increase in revenues during the
first quarter, which were up by 15.4 percent to 174.0 million euros
(previous year: 150.8). Nevertheless, earnings were burdened by the ongoing
restructuring measures, wage increases due to labour agreements and the
latest exchange rate effects. The operating EBIT of the division amounted
to 0.2 million euros, compared with 3.2 million euros during the same
period of the previous year.
Restructuring measures on schedule
Grammer AG continued to further advance the optimisation program for
processes and costs during the reporting period. Productivity-boosting
measures as well as organisational streamlining measures have been launched
in the Eastern European and Mexican plants. Through a reduction in
personnel expenses, measures to boost efficiency, the optimisation of
processes in production, and a reduction in material costs, Grammer is
striving to generate savings of at least 40 million euros over the next two
years.
Sufficient financial scope to finance growth
With total assets of 515.1 million euros (31 Dec. 2007: 497.5), the equity
of Grammer AG totalled 184.1 million euros at the end of the first quarter
(31 December 2007: 184.7). The equity ratio of 36 percent remained high (31
December 2007: 37). The Group thereby continues to have sufficient scope
for financing internal and external growth options.
Outlook
Based on business developments in the first quarter, the current market
environment, and the scheduled progress of the restructuring measures, the
Executive Board reaffirms the forecast for the year as a whole. Compared
with the previous year, the Grammer Group continues to expect a moderate
increase in revenues and a slight growth in EBIT despite non-recurring
expenditures for restructuring.
Ralf Hoppe
Grammer Investor Relations
Phone: +49 9621 66 2200
investor-relations@grammer.com
DGAP 08.05.2008
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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: Quarterly Report January - March 2008
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