14.05.2018
Grammer AG DE0005895403
DGAP-News: Grammer starting off the year with solid figures in the first quarter of 2018
DGAP-News: Grammer AG / Key word(s): Quarter Results
Grammer starting off the year with solid figures in the first quarter of
2018
14.05.2018 / 07:01
The issuer is solely responsible for the content of this announcement.
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Grammer starting off the year with solid figures in the first quarter of
2018
- At EUR 454.4 million, revenue again at a very high level
- Operating EBIT of EUR 20.5 million and operating EBIT-margin of 4.5
percent reflect successful operating performance
- Gratifying performance in the Commercial Vehicles Division
- Full-year forecast for 2018 confirmed: Further growth in revenue and
profitability
Amberg, May 14, 2018 - As expected, the first quarter of 2018 proved to be
more challenging for the Grammer Group after a very successful fourth
quarter in 2017. In the first three months of the current year, Group
revenue came to EUR 454.4 million despite exchange rate fluctuations, thus
reaching the level recorded in the very strong prior-year quarter (2017:
458.0). Both divisions - Automotive and Commercial Vehicles - performed in
line with expectations in the first three months of 2018. As in the previous
year, the Commercial Vehicles Division posted positive revenue growth and
was able to almost completely compensate for the revenue development in the
Automotive Division.
Grammer's operating profitability also remained solid in the first quarter,
although the operating EBIT of EUR 20.5 million fell somewhat short of the
previous year's very strong figure of EUR 23.1 million. This translated into
an operating EBIT-margin of 4.5 percent (2017: 5.0). During the period under
review, there were no exceptional effects and only minor currency
translation effects influencing operating earnings.
Gratifying performance in the Commercial Vehicles Division
As in previous quarters, the Commercial Vehicles Division achieved further
substantial growth in the first three months of 2018, generating revenue of
EUR 153.8 million, thus marking a considerable increase of 14.8 percent over
the same period in the previous year with a revenue of EUR 134.0 million.
This gratifying performance was particularly underpinned by the continued
rise in sales volumes in the agricultural machinery and truck markets as
well as the sustained recovery of the Brazilian market. Favorable market
conditions in all regions as well as growth in the higher-margin business
segments consistently spurred the Division's good earnings performance. EBIT
in the Commercial Vehicles Division rose by 22.4 percent over the same
period of the previous year to EUR 15.3 million (2017: 12.5), while the
EBIT-margin widened to 9.9 percent (2017: 9.3).
Revenue in the Automotive Division contracted by 6.4 percent to EUR 313.9
million (2017: 335.5) primarily as a result of lower revenues from
development projects and the phase-out of existing models together with the
ensuing ramp-up of replacement products. EBIT dropped to EUR 9.7 million
(2017: 14.0), with the EBIT-margin coming to 3.1 percent (2017: 4.2). In
addition to the lower volumes compared with the previous year, the uncovered
development, selling and project costs particularly exerted pressure on
operating performance in this Division. Moreover, the Automotive Division
experienced a large number of model-related new product launches - including
with new customers - and the ramp-up of series projects in North America in
particular in the first quarter of 2018. As expected, this caused shortfalls
in labour productivity and process efficiency in the production area.
"The first quarter lived up to our expectations and overall we are satisfied
with our business performance. There is strong worldwide demand for our
innovative products in all segments. We were able to continue growing in our
domestic EMEA market as well as in Asia (APAC)," says Hartmut Müller, Chief
Executive Officer of Grammer AG. "We knew that we would be facing a number
of challenges in the Automotive Division in particular at the beginning of
the year. Accordingly, we have already taken comprehensive measures to boost
productivity and efficiency in order to rectify the shortfalls in the
Automotive Division."
Development of IFRS EBIT
For earnings before interest and taxes (EBIT) the favorable operating
performance was influenced only by minor currency-translation effects.
IFRS-EBIT thus came to EUR 20.4 million (2017: 22.5), accompanied by an
EBIT-margin of 4.5 percent (2017: 4.9). Consolidated net profit after tax
with EUR 12.2 million as of March 31, 2018 (2017: 14.0) reached almost the
high level of the previous year.
Grammer AG had total assets of EUR 1.1 billion as of March 31, 2018 (2017:
1.2). At EUR 325.8 million, equity was slightly down on the previous year's
figure of EUR 351.0 million, while the equity ratio stood at 30 percent,
thus remaining steady at the previous year's level (2017: 30) and coming
close to the figure of 31 percent recorded in consolidated financial
statements for 2017. This decline was primarily due to the first-time
application of IFRS 15.
Full-year guidance for 2018 confirmed
Group revenue is still expected to rise slightly in the core business
activities and for 2018 as a whole, Grammer projects growth in revenue to
EUR 1.85 billion. Through the measures to boost productivity and efficiency
in the Automotive Division, Grammer will be able to fully offset the current
cost burden in the course of the year and achieve a further improvement in
operating profitability in excess of the previous year's level, thus
confirming the guidance published in the Annual Report for 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 Commercial Vehicles
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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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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685173 14.05.2018
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