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GRAMMER AG — Earnings Release 2011
Nov 9, 2011
186_rns_2011-11-09_d9a3b688-2234-41de-a4db-cd1853cc4222.html
Earnings Release
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Corporate | 9 November 2011 06:55
Grammer AG: Growth trend continues
Grammer AG / Key word(s): Quarter Results
09.11.2011 / 06:55
Grammer AG: Growth trend continues
Group revenue EUR 810.4 million in the first nine months
Group EBIT increases in the first nine months to EUR 36.0 million
Amberg, November 09, 2011 – With positive results for the third quarter of 2011, Grammer AG continues its growth trend this year. The automotive supplier and manufacturer of seating systems for commercial vehicles saw revenue in the first nine months increase by 19.7 percent to EUR 810.4 million (2010: 677.0). Group EBIT was up 56.5 percent to EUR 36.0 million (2010: 23.0). The EBIT margin improved to 4.4 percent (2010: 3.4). Net profit after tax in the nine-month period was EUR 15.8 million (2010: 8.9), 77.5 percent higher than the prior-year period.
As in the preceding quarters, the positive earnings performance in the third quarter of 2011 was driven by good development in all segments of the vehicle industry worldwide. Group revenue in Q3 beat the already strong prior-year quarter by 17.4 percent at EUR 272.9 million (2010: 232.5). Group EBIT improved to EUR 10.2 million (2010: 8.1) and after tax profit in the quarter was higher than Q3 2010 at EUR 6.1 million (2010: 1.0). Despite full order books and higher revenue, the closing of the Immenstetten plant, near Amberg/Germany, along with launches of new major projects and unfavorable exchange rate developments prevented an even better third-quarter result.
Automotive division benefits from new production starts and booming export
Grammer Group’s Automotive division generated 14.5 percent, or EUR 64.2 million, more revenue in the first nine months of 2011 than in the same period last year, at EUR 508.1 million (2010: 443.9). In the third quarter, revenue continued to increase, even given the strength of the comparable period in 2010. Total revenue in the third quarter of 2011 reached EUR 167.1 million (2010: 147.7), an increase of 13.1 percent. Responsible for the pleasing revenue development was the good performance of automotive markets in Europe and the US, which led to strong sales especially for upper mid-size and premium vehicles. Moreover, the Automotive division was a beneficiary of the ongoing boom in export markets.
Operating profit improved to EUR 18.9 million in the nine-month period (2010: 15.0). In the third quarter, operating profit declined slightly to EUR 3.9 million (2010: 4.9), due to the plant shutdown in Immenstetten, near Amberg/Germany, production ramp up’s and unfavorable exchange rate developments – especially in August and September.
Strong growth solidified in the Seating Systems division
In the third quarter of 2011, the positive trend enjoyed by the Seating Systems division over the preceding quarters continued in impressive fashion. During the January to September 2011 period, segment revenue improved 29.4 percent to EUR 322.4 million (2010: 249.1). Compared to the third quarter of 2010, Grammer achieved revenue growth of 25.1 percent to EUR 112.0 million (2010: 89.5). In addition to the increase in revenue, the cost and capacity rationalization offensive in the offroad segment completed in 2010 is now serving to support earnings, so that operating profit in the nine month period rose to EUR 24.2 million, compared to EUR 12.0 million in the comparable period. The growth in earnings in the third quarter of 2011 was also impressive, reaching a total of EUR 7.7 million (2010: 5.2) despite the launch of major projects.
Strong growth in demand for offroad vehicles in Europe, Overseas and Asia and stable sales in the Brazilian truck market were major contributors for this development. The strong improvement over the prior-year period, especially given the strength of Q3 2010, can be seen as a very positive signal. Moreover, the acquisition of specialist for electronic components, EiA Electronics, has contributed to revenue and earnings since August.
Group financing restructured
During the quarter under review, the company re-aligned its financing structure. The restructuring of group financing has decisively improved the balance sheet structure and significantly aligned the maturities of liabilities. The transaction included the early repayment of the previous syndicated loan agreement totaling EUR 110 million that was set to expire originally in August 2013. The syndicated loan was replaced with bilateral working credit facilities. At the same time, a new debenture bond in the amount of EUR 60 million was placed successfully and a tranche of the existing debenture bond entered early into prolongation.
GRAMMER Group’s equity on September 30, 2011 was considerably higher than the 2010 level at EUR 202.5 million (09/30/10: 164.5), as a result of positive business performance and successful capital increase in April. The equity ratio as of September 30, 2011 rose to 33 percent (09/30/10: 29). Net financial liabilities on September 30, 2011 totaled EUR 115.1 million, 10.0 percent lower year-over-year. Accordingly, the net gearing was 21 percent lower at 57 percent.
Comprehensive investment with a focus on Seating Systems
Investments in property, plant and equipment during the first nine months of 2011 were up year-over-year to EUR 24.6 million (2010: 21.5). From January to September, capital was invested primarily in the Seating Systems division for setup of suspended seat production. Investment in the division totaled EUR 15.7 million (2010: 7.7). In the Automotive division, investment amounted to EUR 8.6 million (2010: 13.7) from January to September 2011.
Positive order situation necessitates more employees
On September 30, 2011, there were a total of 8,644 people employed within Grammer Group. This equates to a 9.4-percent increase year-over-year. The number of people employed in the Automotive division increased slightly from 5,021 last year to 5,128. As of September 30, 2011, the Seating Systems division employed a total of 3,334 people (09/30/10: 2,701). Sales growth and strong orders in both divisions necessitated increases in personnel numbers, especially at production plants outside of Germany.
Outlook for full-year 2011
For full-year 2011, the Grammer AG Executive Board is anticipating revenue growth of more than 10 percent to more than EUR 1 billion and an EBIT margin of roughly 4.4 percent.
Still, developments in commodity and foreign exchange markets, as well as the current order situation characterized by short lead times and volatility represent serious risk factors, which bear close monitoring to allow rapid reaction in the event of any changes.
Company Profile
Grammer AG, Amberg, Germany, is specialized in the development and production of components and systems for automotive interiors as well as driver and passenger seats for offroad vehicles (tractors, construction machinery, forklifts), trucks, buses and trains. In the Automotive division, we supply headrests, armrests, center console systems and integrated child safety seats to premium automakers and automotive system suppliers. Our Seating Systems division comprises the truck and offroad seat segments as well as train and bus seating. Grammer is represented in 18 countries worldwide with a workforce of approx. 8,600 employees across its 24 fully consolidated subsidiaries. Grammer shares are listed in the SDAX segment of the German Stock Exchange, and are traded on the Munich and Frankfurt stock exchanges, via the Xetra electronic trading platform and on the OTC markets of the Stuttgart, Berlin and Hamburg stock exchanges.
Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
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| Language: | English |
| Company: | Grammer AG |
| Postfach 14 54 | |
| 92204 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 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart |
| End of News | DGAP News-Service |
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| 145350 09.11.2011 |