AI assistant
GRAMMER AG — Earnings Release 2011
Aug 10, 2011
186_rns_2011-08-10_0f55e82b-4898-4bd3-94f8-dfd8cecbb1b7.html
Earnings Release
Open in viewerOpens in your device viewer
News Details
Corporate | 10 August 2011 06:55
Grammer AG: Revenue growth in the first half exceeds 20 percent
Grammer AG / Key word(s): Half Year Results
10.08.2011 / 06:55
Grammer AG: Revenue growth in the first half
exceeds 20 percent
First-half revenue increased to EUR 537.5 million
Group EBIT higher in the first half-year at EUR 25.8 million
Acquisition of electronic specialist EiA Electronics N.V.
Amberg, August 10, 2011 – Grammer AG, automotive supplier and manufacturer of seating systems, released its interim financial report today for the first six months of 2011. In the first half of the year, the Group revenues increased to EUR 537.5 million (2010: 444.5). This equates to a 20.9 percent rise year-over-year. Consolidated earnings before interest and taxes (EBIT) grew by 72.0 percent in the first half-year to EUR 25.8 million (2010: 15.0). Accordingly, the EBIT margin was also higher at 4.8 percent (2010: 3.4). Primary drivers for the rise in operating profit were positive revenue development and the improved cost structure following measures implemented in 2010.
In the second quarter, Group revenue beat out the prior-year quarter by 13.7 percent at EUR 274.5 million (2010: 241.5). Group EBIT improved to EUR 13.7 million (2010: 11.4), resulting in an operating margin of 5.0 percent (2010: 4.7).
Growing demand in all markets
Grammer increased sales in all markets, but the company was particularly strong in Europe and the Overseas region. Revenue in Europe rose 21.9 percent year-over-year in the first half to EUR 354.5 million (2010: 290.7). In the Overseas region, revenue was up 20.7 percent, rising from EUR 90.4 million in 2010 to EUR 109.1 million. In the Far East/Other region, on the other hand, growth momentum slowed from the preceding quarters, though revenue was 16.6 percent higher at EUR 73.9 million (2010: 63.4).
Automotive division continues growth
Rising numbers of new premium car sales worldwide, the continued boom in export markets and new product launches helped Grammer's Automotive division to an increase in revenue over last year. Automotive revenue totaled EUR 341.0 million in the fist half of 2011 (2010: 295.9), a rise of 15.2 percent. Operating profit improved to EUR 14.9 million in the January to June period (2010: 10.2). The operating margin in the same period was also higher at 4.4 percent (2010: 3.4) due to the positive revenue development and improved cost situation.
Revenue in the second quarter totaled EUR 169.3 million (2010: 159.5) with EBIT of EUR 7.0 million (2010: 6.5). The EBIT margin in Q2 was 4.2 percent (2010: 4.1).
Seating Systems sees strong growth continue in Q2
In the Seating Systems division, Grammer profited from the sharp rise in demand for offroad vehicles in Europe, Overseas and Asia, setting forth the positive first-quarter trend. In the first half, revenue in Seating Systems improved EUR 50.8 million to reach EUR 210.4 million (2010: 159.6). This resulted in a significant EBIT increase for the Group in this division to EUR 16.4 million (2010: 6.7). Accordingly, the EBIT margin in the first half-year was also higher at 7.8 percent (2010: 4.2).
In the second quarter alone, revenue totaled EUR 111.7 million (2010: 87.9). EBIT in Q2 was EUR 8.5 million (2010: 5.8), with the operating margin of 7.6 percent (2010: 6.6).
Balance sheet and financial situation remain solid
On June 30, 2011, the equity of Grammer AG totaled EUR 197.7 million (Dec. 31, 2010: 173.1). The equity ratio at the reporting date was 33 percent. Net financial liabilities fell to EUR 96.9 million (Dec. 31, 2010: 113.8) as of June 30, 2011. These figures reflect the improved financing situation and equity position as a result of positive earnings and capital increase in April of this year.
Grammer acquires electronics specialist
On July 26, 2011, Grammer AG acquired 100 percent of equity in Belgian electronics specialist EiA Electronics N.V., Aartselaar, Belgium. EiA Electronics specializes in development, integration and distribution of electronic components for offroad commercial vehicles. With the acquisition, GRAMMER expands its technological competence in the area of electronics while systematically increasing its value chain coverage. Grammer paid EUR 10.5 million for the acquisition of EiA Electronics N.V., financed by proceeds from the capital increase by Grammer AG.
Comprehensive investment
Fixed assets investments in the first half of 2011 were higher year-over-year at EUR 16.9 million (2010: 15.5). From January to June, capital was invested primarily in the Seating Systems division for setup of production for suspended seats. Investment in this division totaled EUR 10.5 million (2010: 5.4). In the Automotive division, first-half investment amounted to EUR 6.1 million (2010: 10.1).
Headcount increases in first half
On June 30, 2011, there were 8,369 people employed within Grammer Group. This equates to a moderate increase of 8.0 percent compared to June 30, 2010. The number of people employed in the Automotive division increased from 4,934 last year to 5,115. The accelerating economy and new production starts have led to increased staffing requirements at the company's production sites outside of Germany. As of June 30, 2011, the Seating Systems division employed a total of 3,075 people (June 30, 2011: 2,635). In this division as well, higher sales necessitated increases in personnel numbers.
Outlook for full-year 2011
For full-year 2011, the Grammer AG Executive Board is anticipating revenue growth of 10 percent to just over EUR 1 billion and an EBIT yield of roughly 4.4 percent.
The risks from rising commodity prices, exchange rates and global economic development still exist and have not changed significantly from our previous assessment. Presently, the Automotive and Seating Systems markets remain robust, but the impacts from a potential economic slow-down have to be monitored very closely in order to react as fast as possible.
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 17 countries worldwide with a workforce of approx. 8,000 employees across its 23 fully consolidated subsidiaries. Grammer shares are listed in the S-DAX 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.
End of Corporate News
10.08.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
| 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 |
| - - - |
| 135023 10.08.2011 |