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GRAMMER AG — Earnings Release 2010
Mar 30, 2011
186_rns_2011-03-30_ab50c747-8661-4e3c-822e-3fdd4db73c4d.html
Earnings Release
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Corporate | 30 March 2011 06:44
GRAMMER moves forward with
Grammer AG / Key word(s): Final Results
30.03.2011 / 06:44
GRAMMER moves forward with
growth in 2010
Group revenue 28% higher
EBIT-Margin at 3.5%
Net profit reaches EUR 16.3 million
Amberg, March 30, 2011 – In fiscal year 2010, Grammer AG achieved 28.0% growth in Group revenue to EUR 929.7 million (2009: 727.4). The specialist for seating systems and automotive interiors thus nearly regained the revenue level it had prior to the global financial and economic crisis. Both the Seating Systems division, with a 38.4% increase, and the Automotive division, with a 23.1% increase in revenues, contributed to the considerable improvement. Earnings before interest and taxes (EBIT) totaled EUR 32.9 million (2009: -23.9), confirming the earnings forecast from October 2010. After tax, Grammer thus achieved net profit of EUR 16.3 million (2009: -28.2). Earnings per share came in at EUR 1.60 (2009: -2.77). As of December 31, 2010, as a result of the net profit for the year, equity rose to EUR 173.1 million, which equates to an equity ratio of 31% (2009: 30).
Despite the increase in business and investments of EUR 38.1 million (2009: 32.7), net financial liabilities were only slightly higher year over year at EUR 113.8 million (2009: 106.2), which resulted in 4-percentage point lowering of the gearing ratio to 66% (2009: 70).
Regional differences in growth
Performance was not equally distributed throughout the two divisions; there were variations across the regions within Grammer Group. Revenue in Europe, for instance, grew only by a moderate 14.6% as a result of weakness going into the first quarter, whereas the Far East/RoW region posted a 54.9% increase on the back of sizeable growth in Asia. Rapid recovery of the US market and increasing demand for commercial vehicles in South America led to an even greater increase in the overseas region, where revenue grew by 65.1%. 'The divergence of performance between the regions once more demonstrates the strategic importance of our investments in these growth markets. Expansion in these regions remains a clear objective within our strategy for the Group,' says Hartmut Müller, CEO of Grammer AG.
Good results in the Automotive division
Increasing numbers of new German premium vehicles in key markets around the world and new production launches in 2010 helped the Automotive division to a 23% improvement in revenue to EUR 610.2 million (2009: 495.5). Operating earnings before interest and taxes (EBIT) rose to EUR 21.4 million, an increase of EUR 25.3 million over 2009. The Group invested EUR 22.0 million in this division, slightly less than the EUR 22.4 million in the prior year. The focus of capital expenditure was on new production lines for pending customer projects and expansion of capacities in Mexico, Shanghai, Serbia and Schmölln.
Strong growth in the Seating Systems division
The Seating Systems division in 2010 once again made a substantial contribution to the growth of the Group with revenue totaling EUR 341.9 million (2009: 247.1). This equates to an increase of 38.4% over the previous year. Key drivers of performance last year were growing demand for trucks and improving conditions in the market for offroad vehicles in the second half. The division also increased operating profit and, as a result of revenue growth and steps taken to cut costs and boost efficiency, achieved EBIT of EUR 17.6 million (2009: -9.9). Investments totaled EUR 15.8 million, EUR 6.3 million higher year over year. The focus of investment was on expanding production for the new generation of truck seats in Germany and the Czech Republic.
Workforce growth
As of December 31, 2010, GRAMMER Group employed 7,955 people worldwide, 731 more than on the previous annual reporting date. The Automotive division employed 5,034 and the Seating Systems division 2,744. As a result of a favorable new order situation and new production starts, the majority of hires were for production in low-wage countries.
Outlook 2011
For the first half of 2011, Grammer expects new orders to remain stable at the same high level seen in the preceding quarters.
Earnings, however, will be influenced by developments on commodity markets and currency exchange rates, which could impact profitability of the Company during the second half in particular.
On the whole, GRAMMER is expecting moderate revenue growth in fiscal year 2011, along with further improvement in operating profit.
The aftereffects of the earthquake tragedy in Japan on global economic development cannot yet be foreseen. Potential global shortages of parts and components from Japan, could result in production slowdowns for our customers and thus order cancellations in the supplier industry.
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. Our Seating Systems division comprises the truck and offroad seat segments as well as train and bus seating. In the Automotive division, we supply headrests, armrests, center console systems and integrated child safety seats to premium automakers and automotive system suppliers.
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.
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| Language: | English |
| Company: | Grammer AG |
| Postfach 14 54 | |
| 92204 Amberg | |
| Deutschland | |
| 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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| 117508 30.03.2011 |