GRAMMER AG — Earnings Release 2003

Nov 21, 2003

News Details

Ad-hoc | 21 November 2003 10:08

Grammer Group Sales Slightly up as at Sept. 30, 2003

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Grammer Group Sales Slightly up as at Sept. 30, 2003 Weak economic environment and strong euro put a brake on earnings For the year as a whole slight increase in sales and decrease in profits expected Cost-cutting program will help improve profits as of 2004 Amberg, November 21, 2003 – The Grammer Group, the internationally active manufacturer of seats, seating systems and automotive components, boosted Group sales for the first nine months of 2003 by a mild 1.1% from EUR 587.5m one year earlier to EUR 594.2m. Weak overall demand in the vehicle industry, in particular for premium automobiles, tractors and busses, persistent intense pressure on prices and the strong euro all placed a brake on Group profits. Additional factors impairing earnings were start-up costs for new products in the Automotive division, structural adjustments in the Seating Systems division, comprehensive new development projects and the fact that the vehicle sector is increasingly passing guarantee and warranty costs. As at Sept. 30, 2003, consolidated EBIT had fallen 25% on the year from EUR 30.1m to EUR 22.6m. Net income for the period declined from EUR 16.1m to EUR 8.0m. This includes the extraordinary expenses of EUR 1.2m for restructuring measures now concluded at our subsidiaries in Italy and Mexico as well as a higher tax load. The latter rose from EUR 6.2m to EUR 8.3m as unlike the year-before period there were no longer any loss carryforwards that could be booked to the balance sheet. Since there are no signs of an emphatic economic recovery before year-end, Grammer expects that for 2003 as a whole Group sales will be slightly up on the prior year’s figure of EUR 778.5m, while consolidated EBIT will run at about EUR 30m, as against EUR 42.5m in 2002. In the coming year, the Company will be implementing a wide-ranging cost-cutting program and in 2004 this will already contribute somewhat to improving profits and will come fully to bear in 2005. Contact: TIK GmbH, Claudia Wieland, Phone: 0049 911 9597871, info@tik-online.de The comprehensive Interim Report as at September 30, 2003 can be downloaded by clicking http://www.grammer.com . end of ad-hoc-announcement (c)DGAP 21.11.2003 ——————————————————————————– WKN: 589540; ISIN: DE0005895403; Index: Listed: Amtlicher Markt in Frankfurt (General Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf und Stuttgart 211008 Nov 03