30.03.2016
Grammer AG DE0005895403
DGAP-News: Grammer with record revenue for the fifth consecutive year and sets course for sustainable value generation
DGAP-News: Grammer AG / Key word(s): Final Results
Grammer with record revenue for the fifth consecutive year and sets course
for sustainable value generation
30.03.2016 / 06:59
The issuer is solely responsible for the content of this announcement.
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Grammer with record revenue for the fifth consecutive year and sets course
for sustainable value generation
Revenue of EUR 1.43 billion, reaching the fifth consecutive record
Forecast for 2016: Further growth and higher profitability
Dividend of EUR 0.75 per share proposed
Amberg, March 30, 2016 - The Grammer Group, a leading supplier of
components for passenger-vehicle interiors and seats for commercial
vehicles, is presenting its financial statements for 2015 today. With a 4.4
percent increase to EUR 1.426 billion (2014: 1.366), the Group achieved
record revenue for the fifth consecutive time. The substantial growth in
Group revenue, despite the challenging conditions in the commercial vehicle
markets resulted primarily from the strong performance of the Automotive
Division with encouraging expansion in all regions. Consolidated operating
profit was influenced last year by muted conditions in the commercial
vehicle markets, up-front costs for the Group's ongoing
internationalization and very strong growth in the Automotive Division. The
Grammer Group generated earnings before interest and taxes (EBIT) of EUR
42.7 million in 2015 (2014: 57.0). Accordingly, EBIT ultimately exceeded
the adjusted forecast slightly, with the EBIT margin coming to 3.0 percent
(2014: 4.2). Reflecting the development of the operating profit,
consolidated net profit after tax came to EUR 23.8 million (2014: 33.6) and
earnings per share EUR 2.10 (2014: 3.09).
Stable dividend with higher distribution ratio
The solid global footprint and the high level of confidence in the further
successful development of the Grammer Group are also reflected in the
dividend proposal for 2015 announced by the Executive Board and the
Supervisory Board. The stable dividend of EUR 0.75 per share means that the
shareholders of Grammer AG will again receive an attractive share of the
Company's profit and a higher pay-out ratio of 35 % of consolidated net
profit (2014: 24).
"Despite the challenging market conditions, we generally performed well in
2015. In addition to the encouraging revenue growth, we were again able to
reach important operating and strategic milestones, thus laying the
foundations for profitable growth and increases in enterprise value in the
future. Our dividend proposal is a clear signal to our shareholders that,
as planned, we have achieved the progress in the implementation of our
global growth strategy and see further strong potential for the Grammer
Group", says Hartmut Müller, Chief Executive Officer of Grammer AG.
Worldwide growth driven by broad global presence
The Grammer Group recorded appreciable growth in all regions in 2015,
achieving the greatest expansion in the region Americas (North, Central and
South America), where revenue rose by 7.8 percent to EUR 243.9 million
(2014: 226.3). In the NAFTA region double-digit growth rates could be
achieved. On the other hand, revenue in Brazil was down again substantially
due to further market contraction. Revenue also rose in EMEA (Europe,
Middle East and Africa) by 3.8 percent to EUR 971.7 million (2014: 936.0).
Grammer additionally registered an increase of 3.2 percent in APAC (Asia
and Pacific) to reach revenue of EUR 210.1 million (2014: 203.6).
Automotive Division continues to drive growth
The generally favorable performance of the automotive industry and the high
number of new products again spurred revenue in the Automotive Division
very substantially and resulted in a wider market share. Business in
headrests, armrests and center consoles for passenger vehicles was very
dynamic, with revenue in the Automotive Division rising by 10.6 percent to
EUR 1.008 billion (2014: 0.912). The consoles segment in particular again
exhibited very strong growth of 20 percent in 2015 and continues to be the
growth driver for Grammer Automotive in all markets. Regionally, Grammer
Automotive recorded the most dynamic growth of almost 25 percent in the
region Americas and was thus able to additionally strengthen its market
position with German premium OEMs and increasingly also with local
manufacturers in North America.
At EUR 23.8 million, EBIT in the Automotive Division was lower than the
previous year (2014: 28.9) as expected due to expenditure required to
generate the very strong growth as well as for the ongoing
internationalization and optimization of the division's global structures.
Reflecting the substantial increase in revenue, the EBIT margin contracted
to 2.4 percent (2014: 3.2).
Good profitability in the Seating Systems Division despite challenging
market conditions
In the Grammer Group's Seating Systems Division, which produces suspended
seating systems for trucks, agricultural and construction machinery and
railway trains, the persistently difficult conditions in individual regions
and sub-markets caused revenue to contract by 4.2 percent to around EUR
458.4 million (2014: 478.7). Revenue in the core segment Offroad
particularly came under pressure as a result of the substantial drop of
global demand for agricultural machinery, resulting in impacts on earnings.
The truck segment further contracted primarily as a result of the repeated
unexpected slump in the Brazilian market and the sharp decline in China. On
the other hand, material handling and aftermarket business were
encouraging.
Regionally, revenue in all markets contracted in the Seating Systems
division in the previous business year
Overall, it was not possible to offset the effects of this substantial
market contraction of the profitable segments and the expenses arising in
the Division for adjusting capacity and fixed costs in the light of softer
demand. Therefore, divisional EBIT came to EUR 27.8 million (2014: 36.2).
Despite these negative factors, the EBIT margin still reached 6.1 percent
(2014: 7.6), highlighting the strong potential which this Division will be
able to address once the markets have recovered.
Investments for expansion of the international footprint
Capital spending by Grammer AG came to EUR 47.9 million in 2015, 7.5
percent down on the previous year (2014: 51.5). At EUR 31.9 million, the
Automotive Division accounted for the bulk of capital spending, with the
Seating Systems Division attracting a smaller amount due to market
conditions. As part of ongoing efforts to implement the Group's growth
strategy, most of the capital spending in both segments was for the
establishment and expansion of international facilities and production
capacity as well as the optimization of existing locations and processes.
Continued solid equity ratio accompanied by increased net financial
liabilities due to the acquisition of Reum
As of December 31, 2015, the Grammer Group had total assets of EUR 992.0
million (2014: 836.5). This increase of 18.6 percent reflects the larger
business volumes last year, further production expansion and the
consolidation of the Reum Group. Equity rose to EUR 253.4 million (2014:
231.8), with the equity ratio remaining at a solid 26 percent (2014: 28).
Net financial liabilities rose over the previous year primarily as a result
of the acquisition of the Reum Group, coming to EUR 155.5 million as of the
reporting date (2014: 86.7), accompanied by an increase in gearing to 61
percent (2014: 37). Adjusted for the acquisition of Reum, gearing would
have remained virtually unchanged over the previous year's low level.
Acquisition of the Reum Group successfully completed
On December 28, Grammer AG successfully completed the acquisition of
plastics and metals specialist Reum. The acquisition of 100% of Reum's
capital was financed via Grammer AG's existing credit facilities. Grammer
is now able to additionally expand its own technological skills in
innovative production and process technologies and widen its range of
interior components.
Forecast for 2016: Further increase in revenue and rising profitability
Grammer expects a continuation of the volatile and challenging market
conditions in 2016, particularly in the relevant commercial vehicle
markets. Even so, it is confident of being able to successfully address
these challenges thanks to its global footprint and further improvements in
its processes.
For the current year, the Grammer Group expects a small organic increase in
revenue from its core business. Including the Reum Group, which will be
consolidated for the first full year, Group revenue should rise to over EUR
1.6 billion in 2016.
Driven by the higher revenue in the Automotive Division and the positive
effects of last year's numerous optimization measures and the resultant
improvement in profitability, both Divisions should make increased
contributions to earnings again this year. Against this backdrop, Grammer
expects to be able to report higher EBIT compared with the previous year in
2016, accompanied by slight growth in the operating margin.
Company Profile
Grammer AG, Amberg, Germany, specializes in the development and production
of components and systems for automotive interiors as well as driver and
passenger seats for utility and offroad vehicles. In the Automotive
Division, we supply headrests, armrests and center console systems to
premium automakers and automotive system suppliers. The Seating Systems
Division comprises the truck and offroad seat segments as well as train and
bus seats.
Grammer is represented in 20 countries worldwide with a workforce of over
12,000 employees across its 30 subsidiaries.
The Grammer share is listed in the SDAX and traded on the Frankfurt and
Munich stock exchanges via the electronic trading system Xetra as well as
in over-the-counter trading at the Stuttgart, Berlin and Hamburg stock
exchanges.
Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
[email protected]
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30.03.2016 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.
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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: [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
End of News DGAP News Service
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