GRAMMER AG — Earnings Release 2005

Feb 20, 2006

News Details

Ad-hoc | 20 February 2006 17:18

Grammer AG: Initial figures for fiscal year 2005

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Grammer AG: Initial figures for fiscal year 2005 Amberg, February 20 2006. Grammer AG increased Group sales in fiscal 2005. Preliminary figures, which for the first time were reported in accordance with IFRS, showed an increase in total sales of the vehicle supplier to EUR 858 million (previous year: EUR 824.9 million). In the Automotive division, sales increased to EUR 564 million from EUR 540.3 million in 2004, and in the Seating Systems division – which includes the Driver Seats and Passenger Seats segments – sales increased to EUR 300 million from EUR 286.3 million in 2004. The Group’s operating profit amounted to EUR 32 million (2004: EUR 40.1 million). As expected, this figure did not reach the previous year’s level. Costs based on non-recurring expenses for an unusually large number of product start-ups and the establishment of five new Company locations will not be recouped until the current fiscal year. Higher oil prices and the weak business trend in the Passenger Seats segment also had a negative impact on earnings. Grammer is projecting an increase in earnings in 2006. The measures introduced in the fall of 2005 to additionally reduce costs should contribute to this increase. The cost-savings package calls for a reduction of personnel costs at the German locations, among other things. Negotiations with the Works Council and IG Metall on these personnel cutbacks have just been successfully concluded. The agreements made by the negotiating commission, which are still subject to final committee approval, will enable Grammer to save a total of EUR 40 million by 2010. Additional measures to reduce personnel costs have also been implemented at companies in Germany and abroad. The Grammer Group has been preparing its financial statements in accordance with IFRS since the start of 2005. Some effects of first-time consolidation may still be seen in the financial statements. The figures for fiscal 2004, which were originally stated in accordance with the German Commercial Code (HGB), have been converted to IFRS for purposes of comparison. Grammer AG will present the final annual figures for 2005 at its financial statements press conference on March 30, 2006. Grammer AG The Board of Management ISIN: DE0005895403 (SDAX) WKN: 589540 Listed on the official markets in Frankfurt ( Prime Standard) and Munich; traded over-the-counter in Berlin, Bremen, Düsseldorf and Stuttgart Contact: Barbara Zanzinger Phone: +49-9621/66-2216 Fax: +49-9621/66-2796 email: barbara.zanzinger@grammer.com Publisher: Grammer AG Georg-Grammer-Strasse 2 92224 Amberg (c)DGAP 20.02.2006 ————————————————————————— language: English emitter: Grammer AG Postfach 14 54 92204 Amberg Deutschland phone: +49 (0)9621 66-0 fax: +49 (0)9621 66-1000 email: investor-relations@grammer.com WWW: www.grammer.com ISIN: DE0005895403 WKN: 589540 indexes: SDAX stockmarkets: Amtlicher Markt in Frankfurt, München; Freiverkehr in Berlin-Bremen, Düsseldorf, Stuttgart End of News DGAP News-Service —————————————————————————