GRAMMER AG — Earnings Release 2005

Sep 22, 2005

News Details

Ad-hoc | 22 September 2005 08:49

Grammer AG:Raw Materials Prices and Market Factors Slow Development of Earning

Ad hoc announcement §15 WpHG . Grammer AG:Raw Materials Prices and Market Factors Slow Development of Earning Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Amberg, September 22, 2005 – Grammer AG may earn less in fiscal 2005 than initially forecast although sales are rising slightly. On the basis of the development of business in the third quarter, the German automotive supplier now expects operational EBIT to be lower for the year 2005. Originally, the company had anticipated that EBIT would be nearly unchanged from the prior year (EUR 40 million). Grammer is adjusting its forecast to reflect the unusual situation currently affecting its raw materials and sales markets. The further rise in raw materials prices – in particular the costs of mineral oil-based products – is having a negative impact on the company’s earning power. In the Automotive division, the costs of a number of new product launches in connection with new production locations are exceeding the additional costs projected in the budget, and will not be offset by corresponding earnings until 2006. In the Seating Systems division, the development of sales of the Passenger Seats subsegment is weaker than expected. The combination of unusual factors in the current market environment means Grammer AG will not be able to achieve the earnings projected for the year 2005. As a prompt countermeasure, the company has immediately initiated an extensive action plan calling for additional cost reductions and structural measures. The company anticipates that these initiatives will make it possible to still reach the projected EBIT returns for the year 2006. Grammer AG The Board of Management Contact: Barbara Zanzinger Phone: +49-9621/66-2216 Fax: +49-9621/66-2796 email: barbara.zanzinger@grammer.com Grammer AG Postfach 14 54 92204 Amberg Deutschland ISIN: DE0005895403 (SDAX) WKN: 589540 Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf und Stuttgart End of ad hoc announcement (c)DGAP 22.09.2005 220849 Sep 05