07.02.2017
Grammer AG DE0005895403
DGAP-News: Grammer Group with the highest EBIT in its history - substantial improvement in profitability confirms successful corporate strategy:
DGAP-News: Grammer AG / Key word(s): Preliminary Results
Grammer Group with the highest EBIT in its history - substantial improvement
in profitability confirms successful corporate strategy:
07.02.2017 / 11:55
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Grammer Group with the highest EBIT in its history - substantial
improvement in profitability confirms successful corporate strategy
- 19 percent increase in Group revenue to EUR 1.69 billion
- 70 percent increase in EBIT to EUR 72 million
- Global growth trajectory with improved profitability continuing
- Potential risks for future orders cannot be excluded in the event of a
change of control in Grammer AG's governance bodies
Amberg, February 7, 2017 - Grammer AG has today released its preliminary
figures for 2016. With Group revenue of EUR 1.69 billion, the leading
supplier of interior components for passenger cars and seating systems for
commercial vehicles recorded a 19 percent increase over the previous year
(2015: 1.43 billion), marking the sixth consecutive record. At the same
time, the Group's earnings before interest and taxes (EBIT) rose by a
disproportionately strong 70 percent to EUR 72 million (2015: 42.7
million). The Group substantially improved its profitability thanks to the
positive effects from the systematic implementation of cost-cutting and
process-optimization measures. Despite continued weak demand in the global
agricultural machinery segment and the contraction of the Brazilian
commercial vehicle market, the Group's EBIT margin rose substantially as
expected due to the planned reduction in footprint costs and the
improvement in operating performance, rising to 4.3 percent (2015: 3.0).
This substantial improvement of 1.3 percentage points in the margin over
the previous year confirms the Group's successful strategy, under which it
has evolved into a leading global supplier over the last few years thanks
to high spending on production facilities and technology. Today's figures
demonstrate the success of the growth trajectory that has been adopted,
forming a solid basis for the further sustained increase in profitability
and enterprise value.
Both divisions contributed to the Group's very encouraging performance and
not only posted an increase in revenue but were also able to improve their
profitability substantially as expected. This is particularly encouraging
in the commercial vehicle segment as demand in key core markets such as
agricultural machinery and the truck market in Brazil continued to
deteriorate last year. The substantial improvement in profitability in this
division was primarily driven by the successfully implemented cost-
optimization measures. Revenue in the Seating Systems division rose
slightly. Revenue rose by 3.3 percent to around EUR 473 million (2015: EUR
458 million) in contrast to the previous year and despite the still
challenging market conditions.
As expected, the Automotive division was again the main driving force for
revenue, reporting a 26 percent increase to EUR 1.27 billion (2015: EUR
1.01 billion). The division particularly benefited from persistently strong
growth in console business, the successful integration of the former Reum
Group and its outstanding international position. Profitability in this
division was also well up on the previous year in line with plans.
"We performed very successfully last year in a persistently challenging and
volatile market environment, significantly exceeding our ambitious goals.
In particular, the substantial improvement in EBIT to EUR 72 million and,
related to this, the sizeable increase in the operating margin testify to
the success of the optimization measures that we have implemented and
provide a good basis for a further improvement in operating profitability.
The successful implementation of our long-term strategy is also reflected
in the performance of Grammer's shares," says Hartmut Müller, Chief
Executive Officer of Grammer AG. "Over the last few years, Grammer has
spent heavily to turn the company into a globally active reliable partner
to the automotive and commercial vehicle industry and to make it a
technological market leader. As expected, this strategy is now paying off,
offering high potential for a further increase in enterprise value."
Despite the volatile economic and political environment, Grammer expects
further business growth this year, accompanied by moderately higher
revenue. The operating EBIT margin is expected to come to around 5 percent,
thus confirming the positive trend.
Minority shareholder Cascade International Investment GmbH is seeking a
change of control in Grammer AG's currently independent governance bodies
which could result in noticeable strain on customer relations. In this case
the company cannot exclude the possibility of potential risks to future
customer orders.
Grammer AG's Executive Board and Supervisory Board remain unequivocally
committed to the continuation of the successful corporate strategy and
independent corporate governance in the interests of all shareholders and
stakeholders and therefore reject Cascade International Investment GmbH's
demands. If these demands were to be accepted, this would ultimately result
in a minority shareholder assuming control to the detriment of all other
shareholders.
Grammer AG will be publishing its full annual report for 2016 on March 29,
2017.
Company profile
Located in Amberg, Germany, Grammer AG specializes in the development and
production of components and systems for automotive interiors as well as
suspension driver and passenger seats for onroad and offroad vehicles.
In the Automotive Division, we supply headrests, armrests, center console
systems and high-quality interior components and operating systems to
premium automakers and automotive system suppliers. The Seating Systems
Division comprises seats for the truck and offroad seat segments (tractors,
construction machinery, forklifts) as well as train and bus seats.
With over 12,000 employees, Grammer operates in 20 countries around the
world. Grammer shares are listed in the SDAX and traded on the Frankfurt
and Munich stock exchanges via the electronic trading system Xetra.
Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
[email protected]
---------------------------------------------------------------------------
07.02.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Grammer AG
Georg-Grammer-Str. 2
92224 Amberg
Germany
Phone: +49 (0)9621 66-0
Fax: +49 (0)9621 66-1000
E-mail: [email protected]
Internet: www.grammer.com
ISIN: DE0005895403, DE0005895403
WKN: 589540, 589540
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Stuttgart, Tradegate Exchange
End of News DGAP News Service
---------------------------------------------------------------------------
542387 07.02.2017
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Grammer AG ISIN: DE0005895403 können Sie bei EQS abrufen
Automobilzulieferer , 589540 , GMM , XETR:GMM