GRAMMER AG — Earnings Release 2007

Oct 25, 2007

News Details

Ad-hoc | 25 October 2007 14:06

Grammer AG:Preliminary sales and profit figures for the first nine months

Grammer AG / Preliminary Results/Profit Warning

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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Amberg, 25 October 2007 – Grammer AG, Amberg, has published preliminary
figures for the third quarter of 2007. According to these numbers, group
sales for the first nine months of the year totaled EUR 735.1 million
(previous year: 657.9). All three company divisions contributed to the
considerable sales growth of 11.7 percent. Earnings before interest and
taxes (EBIT) reached EUR 26.9 million (previous year: 29.1). Aside from the
increasing prices of raw materials, the weak US dollar, which was slowing
down corporate growth in North America, also had a profit-reducing effect.
Added to this were the increasing expenses at some Eastern European
production sites. Here, the most significant impacts on the results were
due to currency appreciation as well as rising wage and infrastructure
costs. These additional costs could only partially be passed on to the
customers by the car component suppliers. The automotive division was
particularly affected, with an EBIT in the first three quarters of EUR 11.1
million (previous year: 16.6). On the other hand, the two other company
areas, driver seats and passenger seats, each improved their operating
results to EUR 17.8 million (previous year: 16.6) and EUR –0.79 million
(previous year: -0.84), respectively.

Based on the business trends in the third quarter Grammer AG is calculating
on a growth in sales of up to seven percent to over EUR 940 million
(previous year: 881.0), and now estimates an EBIT of approximately EUR 32
million (previous year: 38.9) for fiscal 2007. The company goal of one
billion euros in group sales with a profit margin of over five percent
(previous year: 4.4 percent) for the year 2009 remains unchanged. The
organization will be streamlined and the efficiency of operating processes
in the automotive segment should be improved in order to achieve greater
productivity and profitability. In addition, processes and quality will
also be optimized throughout the entire group.

Grammer AG

The Management Board
25.10.2007 Financial News transmitted by DGAP

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Language: English
Issuer: Grammer AG
Postfach 14 54
92204 Amberg
Deutschland
Phone: +49 (0)9621 66-0
Fax: +49 (0)9621 66-1000
E-mail: investor-relations@grammer.com
Internet: www.grammer.com
ISIN: DE0005895403
WKN: 589540
Indices: SDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Stuttgart, Hamburg, Düsseldorf

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