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GRAMMER AG — Earnings Release 2012
May 9, 2012
186_rns_2012-05-09_f777e5ef-5de5-45a5-a652-3711ece0d8ec.html
Earnings Release
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News Details
Corporate | 9 May 2012 06:59
Grammer achieves substantial revenue growth in the first quarter 2012
Grammer AG / Key word(s): Quarter Results
09.05.2012 / 06:59
Grammer achieves substantial revenue growth in the first quarter 2012
Revenue increases 8.7 % to EUR 285.8 million
At EUR 12.1 million, EBIT matches prior year despite start-up costs
Amberg, May 09, 2012 – Grammer AG held to its growth trend once more in the first quarter of 2012, in which the company generated consolidated Group revenue of EUR 285.8 million. Revenue in the period from January to March 2012 were thus up 8.7 % from the previous year (01-03 11: 263.0). The revenue increase was primarily attributable to the Seating Systems division, which benefited once more from ongoing demand strength in the core markets, as well as new product launches.
With EUR 12.1 million operating earnings before interest and taxes (EBIT) matched the prior-year quarter (01-03 11: 12.1). The EBIT margin was 4.2 %, and was burdened by product launches and the set-up of new manufacturing facilities for truck seat production.
Net profit after tax in the reporting period totaled EUR 7.7 million, up considerably from the first quarter 2011 (01-03 11: 4.9).
Grammer invests in new products
Grammer Group invested a total of EUR 7.8 million in the first quarter of 2012 (01-03 11: 9.9). In the Seating Systems division, EUR 4.9 million were invested, primarily in the building of production capacities for the new generation truck seats and production optimization measures. A total of EUR 2.8 million were invested in the Automotive division, mainly in the buildup of center console production capacities to fill orders received in 2011.
Regional differences in revenue development
Looking at Grammer Group's markets worldwide, Europe – with a 12.5 % revenue improvement to EUR 194.3 million (01-03 11: 172.7) – played a major role in the quarter under review. The proportion of overall sales represented by Europe thus rose to 68.0 % (01-03 11: 65.7). In the Americas region, as well as Far East/Others, revenues remained stable at a high level. Sales in Americas region were up 1.6 % to EUR 56.2 million (01-03 11: 55.3). Despite continued high demand in the US, the regional market was up only slightly as a result of strong contraction in Brazil. Growth was also a marginal 1.0 % in the Far East/Others region, with total revenue of EUR 35.3 million (01-03 11: 34.9).
Seating Systems drives revenue growth
The greatest contributor to growth within Grammer Group in the reporting period was the Seating Systems division. On the back of surging demand in Europe and the US, the division generated revenue of EUR 121.0 million (01-03 11: 98.7) in the first quarter of 2012 – an increase of 22.6 %. One-off costs for the start of production of the new generation truck seats had a slight negative impact on EBIT in the division, which fell from EUR 7.9 million to EUR 7.1 million. Results were also burdened by weak performance in Brazil, which was not fully compensated by the other markets. EBIT margin in the first quarter of 2012 was 5.8 % and therefore below the very high level of the previous year (01-03 11: 8.0) due to the special influences described above.
Automotive division continues to thrive
Revenue in the Automotive division reached the high level seen last year, falling off slightly to EUR 169.9 million in the first quarter of 2012 (01-03: 171.7) due to lower project related sales. Operating profit of EUR 7.6 million (01-03 11: 7.9) and the EBIT margin of 4.5 % (01-03 11: 4.6) also remained at the same high level seen in the prior-year quarter.
Outlook 2012
Grammer expects that worldwide market growth will normalize after the high growth rates over the past two years. For 2012 Grammer expects a positive order development on previous year's level or slightly above due to stable core markets and new product launches.
Subject to a stable development of the product launches and economic conditions, Grammer expects a positive development of revenues and earnings in 2012.
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 and center console systems 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. 9,000 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 |
| Indices: | SDAX |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart |
| End of News | DGAP News-Service |
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| 168788 09.05.2012 |