21.03.2018
Grammer AG DE0005895403
DGAP-News: Grammer successful in 2017 with record revenue and improved profitability
DGAP-News: Grammer AG / Key word(s): Final Results
Grammer successful in 2017 with record revenue and improved profitability
21.03.2018 / 06:57
The issuer is solely responsible for the content of this announcement.
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Grammer successful in 2017 with record revenue and improved profitability
- Growth in revenue to a new record of EUR 1.79 billion
- 18 percent increase in Group operating EBIT to EUR 80.2 million
- Dividend of EUR 1.25 per share proposed despite exceptional expenses in
2017
- Forecast for 2018: Further growth in revenue and profitability
Amberg, March 21, 2018 - The Grammer Group's business performance faced
major challenges in 2017. This made it all the more remarkable that the
leading international supplier of components for passenger vehicle interiors
and seats for commercial vehicles was able to post further growth in revenue
as well as in operating profitability over the previous year. According to
the annual financial statements published today, the Grammer Group generated
revenue of EUR 1.787 billion (2016: 1.696), equivalent to an increase of 5.4
percent. This top-line growth was particularly underpinned by gains in the
Americas and APAC regions thanks to Grammer's good position in these
markets. This confirms the preliminary figures already announced in
February.
Further improvement in profitability
The Grammer Group's operating EBIT outpaced revenue, widening by 17.8
percent over the previous year to EUR 80.2 million in 2017 (2016: 68.1).
This translated into an improvement of 0.5 percentage points in the
operating EBIT margin, which increased to 4.5 percent (2016: 4.0). This
encouraging operating performance and improved profitability are the result
of the successful corporate strategy aimed at expanding the Group's
international footprint simultaneously with the measures implemented to
boost efficiency.
Strong growth in the Commercial Vehicles Division
The gratifying business performance was underpinned by both divisions. The
Commercial Vehicles Division in particular achieved strong growth in all
regions, benefiting from high revenue in the offroad and material handling
segments as well as growing demand for truck seats. This was joined by the
recovery in Brazil. Accordingly, Grammer achieved a 14.1 percent increase in
revenue to EUR 540.2 million (2016: 473.6), thus substantially exceeding the
original forecast for the year. Operating EBIT rose by 32.7 percent to EUR
47.5 million (2016: 35.8), resulting in a likewise substantially improved
margin of 8.8 percent (2016: 7.6).
Improved revenue and earnings in the Automotive Division
With revenue up 1.6 percent, the Automotive Division also continued the
sharp growth in business achieved in earlier years. After the high growth
rates of previous years, revenue in this division returned to normal growth
rates in 2017 in line with expectations, coming to EUR 1.29 billion (2016:
1.27). Operating EBIT in the Automotive Division also increased by 11.0
percent to EUR 45.4 million (2016: 40.9). The operating EBIT margin came to
3.5 percent (2016: 3.2). This division's consistently good performance is
especially due to the steady growth in console business. The division posted
higher revenue in the Americas and APAC regions in particular.
Encouraging revenue growth in all regions
With its good international footprint and the focus on the premium segment,
Grammer recorded growth in sales volumes in all core regions. At EUR 1.2
billion (2016: 1.2), EMEA (Europe, Middle East, Africa) again accounted for
the largest share of revenue in 2017.
The highest growth rates were registered in the Americas region (North,
South and Central America). After coming to 1.2 percent in 2016, growth
picked up substantially to 13.8 percent in 2017, underpinned by the
favorable economic environment in the NAFTA region as well as new automotive
product launches at the new plants in Tupelo, United States, as well as the
plants in Mexico. This was joined by the economic recovery in Brazil.
Revenue in APAC grew at a similar rate, rising by 11.9 percent to EUR 280.9
million (2016: 251.0). The main growth driver in this region was the
Commercial Vehicles Division with growth of 54.9 percent. At the same time,
the joint venture in China with truck OEM Shaanxi exceeded expectations and
the truck business gained substantial market share.
"In the business year 2017 we achieved further substantial growth globally,
while at the same time improving operating profitability significantly
despite the special circumstances prevailing last year. This clearly shows
that we have successfully implemented our strategic measures for achieving
greater growth and profitability over the last few years," says Hartmut
Müller, CEO of Grammer AG. "Looking forward, we will continue to pursue this
successful course. In addition, we want to give our shareholders a share of
our success this year once again. For this reason, we will be proposing an
almost unchanged dividend of EUR 1.25 per share at the annual general
meeting on June 13, 2018. We want to make sure that the exceptional expense
arising last year is not passed onto the shareholders."
Development of IFRS EBIT
Within earnings before interest and taxes (EBIT), the favorable operating
performance was unable to compensate for the extraordinary expense and
currency-translation influences in the total amount of EUR -13.7 million
(2016: +4.9). As expected, IFRS-EBIT thus fell by 8.9 percent over the
previous year to EUR 66.5 million (2016: 73.0).
Consequently, consolidated net profit came to EUR 32.4 million, falling
short of the previous year (2016: 45.2). Basic earnings per share amounted
to EUR 2.67 (2016: 4.01).
Equity strengthened
As of December 31, 2017, the GRAMMER Group had total assets of EUR 1,107.0
million (2016: 1,050.6). This marks an increase of 5.4 percent over the
previous year, reflecting the increased business as well as plant expansion
activities. Group equity stood at EUR 337.7 million as of the reporting date
(2016: 271.2), accompanied by a substantial improvement in the equity ratio
to 31 percent (2016: 26).
Outlook: Further growth of revenues and profitability
Grammer assumes that the economic environment will remain challenging in
2018, with the relevant markets exhibiting disparate conditions. For the
total year 2018 Grammer expects revenues to rise to EUR 1.85 billion and a
further improvement of operating profitability above previous year's level.
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 Commercial Vehicle
Division comprises seats for the truck and offroad seat segments (tractors,
construction machinery, forklifts) as well as train and bus seats.
With 13,000 employees, Grammer operates in 19 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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21.03.2018 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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666537 21.03.2018
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