07.08.2018
Grammer AG DE0005895403
DGAP-News: Grammer AG: Further increase in revenue and earnings in the first half of 2018
DGAP-News: Grammer AG / Key word(s): Half Year Results
Grammer AG: Further increase in revenue and earnings in the first half of
2018
07.08.2018 / 06:55
The issuer is solely responsible for the content of this announcement.
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Grammer AG: Further increase in revenue and earnings in the first half of
2018
- Increase in revenue to EUR 927.6 million
- Substantial growth in EBIT to EUR 41.9 million, accompanied by an improved
EBIT margin of 4.5 percent
- Stable operating EBIT of EUR 43.3 million with a margin of 4.7 percent
- Continued strong performance in the Commercial Vehicles Division
- Full-year guidance for 2018 confirmed
- Minimum acceptance threshold for the takeover offer submitted by strategic
partner Jiye Auto Parts GmbH is expected to be substantially exceeded
Amberg, August 7, 2018 - After a challenging first quarter as expected,
Grammer grew in the second quarter in line with plans, posting an increase
in Group revenue to EUR 927.6 million in the first half of 2018 (2017:
908.0). The Commercial Vehicles Division in particular continued to perform
very well, although revenue in the Automotive Division was also up in the
second quarter following the more muted start to the year as a result of
production ramp-ups. Regionally, the Grammer Group expanded in EMEA and
APAC. Whereas revenue in the domestic EMEA market rose slightly to EUR 636.7
million (2017: 625.7) due to strong growth in the Commercial Vehicles
Division, Grammer again achieved strong top-line growth of 12.9 percent to
EUR 151.9 million (2017: 134.5) in the APAC region. Only the Americas region
sustained a moderate 6.0 percent decline to EUR 139.0 million (2017: 147.8)
primarily as a result of lower revenue in the wake of numerous product
phase-outs and ramp-ups as well as series change-overs in the Automotive
Division.
Operating EBIT stable at a high level. Increase in IFRS EBIT
In the first six months of the current year, Group operating EBIT adjusted
for exceptionals and currency effects came to EUR 43.3 million, thus coming
very close to the previous year's figure (2017: 44.0). This also applied to
the operating EBIT margin, which remained stable at 4.7 percent (2017: 4.8).
Although exceptional effects arising from changes in the shareholder
structure and the uncovered R&D expenses again exerted pressure on earnings
in the second quarter, IFRS earnings before interest and taxes (EBIT) rose
by 19.4 percent to EUR 41.9 million (2017: 35.1). The EBIT margin came to
4.5 percent as of June 30, 2018, also widening sharply (2017: 3.9).
Strong growth in the Commercial Vehicles Division and stabilization in the
Automotive Division
At EUR 646.7 million (2017: 661.9), the Automotive Division again
contributed the bulk of Group revenue. However, as in the previous quarters,
the Commercial Vehicles Division achieved stronger growth of 15.4 percent,
resulting in very encouraging revenue of EUR 308.3 million in the first six
months of 2018. Driven by upbeat market conditions in all regions,
significant order intake in all market segments and the expansion of
high-margin business segments, the strong top-line growth also led to a
substantial improvement in this division's operating EBIT, which climbed to
EUR 30.3 million (2017: 22.7), accompanied by an operating EBIT margin of
9.8 percent (2017: 8.5).
The sharp growth in the Commercial Vehicles Division thus easily made up for
the small decline in revenue posted by the Automotive Division in the first
half of the year. This decline was primarily caused by the numerous model
change-overs and, hence, new product launches in the Automotive Division,
which exerted pressure on revenue during the production ramp-up phase in the
NAFTA region in particular. As expected, the situation eased in the second
quarter, resulting in a slight increase in revenue. In addition to
ramp-up-related capacity costs and higher raw material prices for plastic
and foam components, the still uncovered development, sales and project
costs weighted on the Automotive Division's operating performance, albeit to
a far lesser extent than in the first quarter. This was also reflected in
the Automotive Division's operating EBIT, which dropped to EUR 21.3 million,
down from the previous year's figure of EUR 28.2 million, accompanied by an
EBIT margin of 3.3 percent (2017: 4.3).
"The Group generally performed in line with our expectations in the first
half of the year. The most important event for Grammer in the last few
months has been the takeover offer submitted by our strategic partner in
China. After a sucessful transaction, Ningbo Jifeng will be our anchor
investor, acting as an important partner for Grammer's future activities in
the Asian market," says Hartmut Müller, CEO of Grammer. "At the same time,
we will be able to substantially reinforce our market position in North
America with the acquisition of US automotive component supplier Toledo
Molding & Die Inc., which will allow us to harness the growth potential that
this region will continue to offer in the future."
Takeover offer by Ningbo Jifeng
At the end of May, Grammer AG entered into a business combination agreement
with strategic investor Ningbo Jifeng via the bidding entity Jiye Auto Parts
GmbH under which a public takeover offer was submitted to the shareholders
of Grammer AG. The main purpose of the business combination agreement is to
deepen the strategic partnership that was established in 2017, to
additionally stabilize the shareholder structure by expanding the investor's
share in Grammer AG, to optimize the Group's global footprint and to secure
its independence and global growth strategy. The published takeover offer of
June 25, 2018 offered a settlement of EUR 60.00 per share. The Executive
Board and the Supervisory Board of Grammer AG welcome the terms of the
business combination agreement and, in a reasoned joint statement, support
the takeover offer. Accordingly, they recommend acceptance of the offer by
the shareholders. During the acceptance period, the bidder altered the
conditions for acceptance, lowering the minimum acceptance threshold from 50
percent plus one share to 36 percent plus one share. As a result, the
acceptance period was extended until August 6, 2018. On August 6, 2018, the
bidder has anncounced, that the amount of Grammer shares, which have been
tendered until August 3, 2018, in addition to the amount of Grammer shares
held directly by the bidder, equals a proportion of 45.58 percent of the
Grammer shares issued.
Full-year forecast for 2018 confirmed
For 2018 as a whole, Grammer continues to project growth in revenue to EUR
1.85 billion as well as 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 and in the first quarter of 2018.
The outlook for the second half-year 2018 is based on the current forecasts
for the global economy as well as the main markets and customers. The
EU-wide introduction of the worldwide harmonized light vehicles (WLTP) test
procedure for passenger cars and light commercial vehicles could also have a
negative impact on the sales of the customers in the Automotive Division in
the second half of the year. However, a specific forecast is not yet
possible at this stage. In addition, recent developments with respect to
trade restrictions as well as mutually imposed retaliatory custom tariffs
may leave noticeable traces on future earnings.
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 over 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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07.08.2018 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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711379 07.08.2018
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