09.11.2016
Grammer AG DE0005895403
DGAP-News: Grammer continuing strong revenue growth with higher profitability
DGAP-News: Grammer AG / Key word(s): 9-month figures
Grammer continuing strong revenue growth with higher profitability
09.11.2016 / 06:46
The issuer is solely responsible for the content of this announcement.
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Grammer continuing strong revenue growth with higher profitability
Group revenue up almost 20 percent, rising to EUR 1.27 billion in the first
nine months
67 percent increase in EBIT to EUR 49.6 million
Full-year guidance for 2016 confirmed
Amberg, November 9, 2016 - The extremely successful business performance of
the Grammer Group, a global supplier of interior components for passenger
vehicles and seating systems for commercial vehicles, continued in the
third quarter of the current year. In the first nine months of 2016, Group
revenue rose by 19.8 percent to EUR 1.27 billion (2015: EUR 1.06 billion).
This favorable performance was primarily driven by the Automotive Division,
which achieved strong growth in console business, as well as the successful
integration of the former REUM Group. Market conditions in the company's
second division - Seating Systems - remained challenging in some regions,
particularly Brazil, China and the United States. Despite this, the
division posted higher revenue in the first nine months compared with the
same period in the previous year.
The Grammer Group's operating EBIT almost doubled to EUR 47.6 million
(2015: EUR 26.7 million), thus reaching the Group's own expectations and
targets for sustained growth of its enterprise value. This gratifying
performance was particularly due to the positive effects from the
implementation of cost and process optimization measures.
Driven by the successful business operations in both divisions, Group
earnings before interest and taxes (EBIT) grew at a disproportionately
strong rate by 67 percent, rising from EUR 29.7 million to EUR 49.6 million
in the first nine months despite the lower currency-translation gains
compared with the previous year. Reflecting this, the EBIT margin widened
to 3.9 percent (2015: 2.8 percent).
Group net profit after tax also rose very substantially to EUR 25.6 million
(2015: EUR 16.7 million) in the first nine months.
Revenue and EBIT in line with expectations in the third quarter
In the third quarter of 2016, Group revenue came to EUR 404.7 million
(2015: EUR 345.8 million) despite the usual seasonal effects, driven in
particular by growth in the Automotive Division.
Operating EBIT rose to EUR 11.8 million in the third quarter (2015: EUR 8.7
million). In the third quarter, EBIT increased very sharply to EUR 13.2
million (2015: EUR 5.1 million). Group net profit came to EUR 4.3 million
in the third quarter (2015: EUR 3.1 million).
Increase of almost 30 percent in revenue in the Automotive Division
accompanied by a substantial improvement in profitability
The Automotive Division posted revenue of EUR 941.1 million in the first
nine months (2015: EUR 740.9 million), marking an increase of almost 30
percent. This positive business performance was due to further serial
launches in all regions, our customers' continued favorable performance
particularly in the premium segment and the first-time consolidation of the
former REUM Group. Despite the negative currency-translation effects, EBIT
in the Automotive Division climbed by 62.3 percent to EUR 28.4 million
(2015: EUR 17.5 million). The EBIT margin in the division came to 3.0
percent (2015: 2.4 percent).
In the third quarter as well, revenue in this division rose very
substantially over the previous year by almost 25 percent to EUR 306.1
million (2015: EUR 246.0 million). Earnings before interest and taxes
(EBIT) came to EUR 7.7 million and were thus 148 percent up on the same
quarter in the previous year.
Higher revenue and higher EBIT margin in Seating Systems Division despite
persistent market weakness
Revenue in the Seating Systems Division climbed by 5 percent to EUR 360.6
million in the first nine months (2015: EUR 343.4 million). A further slump
in the Brazilian market and sustained muted demand for agricultural
machinery in the United States were more than compensated by growth in
Europe and Asia. Division EBIT rose from EUR 19.5 million to EUR 28.4
million in the first nine months, while the EBIT margin widened
substantially to 7.9 percent (2015: 5.7 percent).
In view of the usual seasonal effects, revenue came to EUR 110.1 million in
the third quarter and was thus in line with the previous year (2015: EUR
110.3 million). Despite this, EBIT increased very sharply to EUR 8.4
million (2015: EUR 3.5 million). At the same time, the EBIT margin rose to
7.6 percent in the third quarter (previous year 3.2 percent).
Increased capital expenditure for expanding global business activities
At EUR 34.1 million on September 30, 2016, capital expenditure was up on
the previous year (2015: EUR 25.0 million) and was primarily used to expand
and optimize business activities in all regions around the world. A further
reason for the higher capital expenditure was the consolidation of the
former REUM Group.
Full-year guidance for 2016 confirmed
The Grammer Group expects to continue performing very well in the remaining
months of the year, although the difficult and volatile economic conditions
in some regions are still leaving traces.
The full-year revenue of the GRAMMER Group (including the REUM Group) is
still expected to rise by over 15 percent over the previous year to more
than EUR 1.66 billion in 2016. At over EUR 60 million, Group EBIT will also
be very substantially up on the previous year. This places the GRAMMER
Group firmly in its target corridor for a further sustained increase in
revenue and profitability over the next few years.
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 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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09.11.2016 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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