10.08.2016
Grammer AG DE0005895403
DGAP-News: Grammer Group with sharp rise in revenue and profit in the first half of the year. Full-year guidance raised
DGAP-News: Grammer AG / Key word(s): Half Year Results
Grammer Group with sharp rise in revenue and profit in the first half of the
year. Full-year guidance raised
10.08.2016 / 06:58
The issuer is solely responsible for the content of this announcement.
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Grammer Group with sharp rise in revenue and profit in the first half of
the year. Full-year guidance raised
Operating EBIT of EUR 35.8 million, doubling the previous year
21 percent increase in Group revenue to EUR 861 million
Full-year guidance for 2016 raised
Amberg, August 10, 2016 - The Grammer Group, a global supplier of interior
components for passenger vehicles and seats for commercial vehicles
impressively continued on its successful growth trajectory in the first
half of 2016, recording a strong 21.2 percent increase in revenue to EUR
860.6 million (2015: 710.2). Both of the group's divisions contributed to
this positive business development. This performance in the first six
months of the year forms a strong basis for the rest of 2016, prompting the
company to increase its full-year guidance.
With an increase of 30.4 percent to EUR 628.1 million (2015: 481.7), the
domestic EMEA market (Europe-Africa-Middle East) was the fastest-growing
region thanks to the successful integration of the Reum Group and the
company's ongoing good performance in its core European markets. Despite
the more muted economic conditions in China and Japan, revenue in Asia-
Pacific (APAC) grew by 13.0 percent to EUR 116.2 million (2015: 102.8). It
was only in the Americas that revenue was lower due to the persistently
difficult market conditions in Brazil, dropping slightly to EUR 116.3
million (2015: 125.7).
Operating EBIT almost doubled in the first half of the year
The increase of almost 100 percent in operating EBIT to EUR 35.8 million
(2015: 18.0) reflects Grammer's successful operating performance in both
divisions as well as the positive effects arising from the efficient
implementation of the cost and process optimization measures. As a result,
the operating EBIT margin widened significantly by 1.7 percentage points to
4.2 percent (2015: 2.5 percent).
Group earnings before interest and taxes (EBIT) also climbed sharply by
almost 50 percent to EUR 36.4 million (2015: 24.6) despite the fact that
the previous year's figure had been influenced positively by strong
exchange rate effects. The EBIT margin rose by 0.7 percentage points over
the previous year to 4.2 percent (2015: 3.5 percent).
At the same time, net profit increased very sharply by almost 60 percent to
EUR 21.3 million (2015: 13.6).
"Despite the still challenging conditions in some core markets, Grammer
achieved an encouragingly strong increase in revenue and profit in the
first half of the year. In particular, the very significant increase in
operating EBIT confirms that the efforts to enhance the efficiency of our
operations are showing the expected effect and that we are implementing our
strategy for profitable growth successfully and in line with our plans.
This places us firmly in our target corridor for further growth and an
higher enterprise value of Grammer Group over the next months and years,"
said Hartmut Müller, Chief Executive Officer of Grammer AG.
Continued strong growth in the Automotive Division
The Automotive Division remained the main revenue driver in the first half
of 2016. High revenue growth of 28.3 percent to EUR 635.0 million (2015:
494.9) was recorded thanks to the first-time consolidation of the Reum
Group, new series start-ups and continued demand in the premium segment.
Earnings before interest and taxes (EBIT) rose substantially by 43.8
percent to EUR 20.7 million (2015: 14.4), with the EBIT margin widening
from 2.9 percent to 3.3 percent in the first half of the year. Operating
EBIT grew even more quickly, rising by more than 90 percent to EUR 21.4
million (2015: 11.0). This reflects the preliminary positive effects of the
optimization measures implemented in the previous years and the planned
reduction in globalization costs.
Higher revenue in the Seating Systems Division despite challenging market
conditions in Brazil and China
Grammer's Seating Systems Division also achieved a 7.5 percent increase in
revenue to EUR 250.5 million (2015: 233.1) despite the persistent weakness
of the Brazilian market. This was primarily due to higher revenue in
Europe, which more than compensated the contraction in Brazilian business.
With demand still very weak in Brazil and the absence of economic impetus
for a swift market recovery, further capacity adjustments have been made to
Grammer's local production facility.
Despite these factors, earnings before interest and taxes (EBIT) rose by 25
percent in the period under review to EUR 20.0 million (2015: 16.0) thanks
to improved business in profitable core markets, accompanied by an increase
in the EBIT margin to 8.0 percent (2015: 6.9). At EUR 18.6 million (2015:
13.2), operating EBIT increased by more than 40 percent.
Investments in expansion of global business activities
At EUR 19.9 million (2015: 15.9), total capital spending by the Grammer
Group in the first six months was up on the previous year. A large part of
this was for the set-up and expansion of international facilities and
production capacities as well as the optimization of existing locations and
processes. Whereas capital spending in the Automotive Division was
particularly related to the integration of the Reum Group, the Seating
Systems Division primarily invested in its facilities in China and the
United States.
Increased guidance for 2016
Despite the still difficult and volatile environment, the Grammer Group's
business is expected to remain very strong in the second half of 2016.
However, the pace of growth will be slightly slower than in the first half
of 2016 due to seasonal effects, reduced project revenue and weaker
economic momentum.
At the Group level (including the Reum Group), Grammer forecasts an
increase in revenue of more than 15 percent over the previous year to
roughly EUR 1.66 billion in 2016.
At over EUR 60 million, Group EBIT in 2016 will also be very substantially
up on the previous year.
Company profile
Domiciled 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]
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10.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a
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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
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