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GRAMMER AG — Earnings Release 2013
May 8, 2013
186_rns_2013-05-08_31863a2f-1bd8-4a1c-b4e5-0ce596bd6b4d.html
Earnings Release
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Corporate | 8 May 2013 06:43
Grammer AG: Group revenue and operating profit in first quarter improves significantly over prior-year
Grammer AG / Key word(s): Quarter Results
08.05.2013 / 06:43
Grammer AG: Group revenue and operating profit in first quarter improves significantly over prior-year
Group revenue in Q1 up 9.1 percent to EUR 308.4 million
EBIT and EBIT margin improve year-over-year
Continued high order volumes in both divisions
Amberg, May 08, 2013 – With revenue growth of 9.1 percent year-over-year, Grammer Group is off to a strong start in fiscal year 2013. In total, Group revenue in the first quarter of 2013 increased to EUR 308.4 million (2012: 282.7), the highest quarterly amount ever achieved by Grammer. The majority of this positive development is attributable to the Automotive division, where revenues were up 14 percent to EUR 193.7 million (2012: 169.9). Contributing to this were the takeover of Nectec s.r.o., new product launches in 2012 and the still positive sales figures of premium car manufacturers. In our second division, Seating Systems, revenue improved slightly from the already strong prior-year level to EUR 119.6 million (2012: 117.9).
At Group level, operating profit (EBIT) in the first quarter of 2013 was roughly 12 percent higher than in the first quarter 2012 at EUR 13.8 million (2012: 12.3). Accordingly, the EBIT margin increased to 4.5 percent (2012: 4.4). Net profit in the reporting period totaled EUR 8.0 million (2012: 8.0).
Revenue growth in all regions and markets
In the first quarter of 2013, Grammer Group saw revenue increases in all of its regional markets. In Europe, revenues increased by 6.6 percent, in the Americas by 12.4 percent and in the region Far East/Rest revenue growth reached as high as 17.8 percent. Revenue in Europe thus totaled EUR 207.1 million, followed by EUR 59.7 million in the Americas and EUR 41.5 million in Far East/Rest.
Recovery in Brazil, but European market slows Seating Systems
In the Seating Systems division, ongoing weak truck demand in Europe has taken its toll. The growth market China has also seen lower growth in the construction machinery segment. At the same time, Brazil has seen considerable sales growth as a result of a recovery in the local truck market. In the offroad segment, revenue has been stable at a high level in the first three months of this year. On the whole, the difficult situation in Europe has been compensated thanks to Grammer Group’s worldwide market position, so that revenue even increased slightly over the outstanding prior-year quarter. Revenue in the Seating Systems division was up slightly from EUR 117.9 million in Q1 2012 to EUR 119.6 million – an increase of 1.4 percent. Operating profit (EBIT) improved substantially to EUR 8.9 million (2012: 7.3), increasing the EBIT margin to 7.4 percent (2012: 6.2). This excellent performance is attributable to the market recovery in Brazil and lower launch costs for the new truck seat generation. On the other hand the result was burdened by the overall low truck demand in Europe and the related capacity underutilization of the manufacturing sites affected.
Automotive division contributes growth momentum
The Automotive division has once more generated strong revenue gains in the first three months of 2013, even compared to the already high prior-year levels. At EUR 193.7 million, the division topped the comparable period in 2012 by 14 percent (2012: 169.9). Despite declining new vehicle registration numbers, especially in Europe, Grammer products newly launched in 2012, along with continued strength in the export markets for premium vehicles and the acquisition of Nectec s.r.o. contributed substantial growth momentum. Operating profit of EUR 9.0 million (2012: 7.6) and an EBIT margin of 4.7 percent (2012: 4.5) also beat out the high levels seen in the prior-year quarter.
Higher equity due to positive business performance
As a result of the earnings performance, Grammer Group equity as of March 31, 2013 was up on a year-over-year basis to EUR 221.3 million (2012: 218.0). The equity ratio as of March 31, 2013 was 31 percent (2012: 33). Net debt was only slightly higher, despite the Nectec s.r.o. acquisition, at EUR 107.1 million (2012: 97.2).
Investment focused on new products
With the exception of the takeover of Nectec, Grammer invested EUR 7.2 million in the first quarter of 2013, somewhat less than in the comparable period last year (2012: 7.8). Of that a total of EUR 4.1 was invested in the Seating Systems division for the expansion of truck seat production. In the Automotive division, the majority of the investments of roughly EUR 3.0 million were spent in the buildup of production capacities for center consoles as a result of new orders received.
Outlook
In view of the business situation in the initial three months of 2013, and in light of the ongoing instability of the economic environment, the outlook for the performance of Grammer Group is cautiously positive.
Accordingly, its established international presence affords Grammer good chances for further growth and improved market positioning in core markets as the year progresses. On the whole, assuming stable economic conditions, revenue and operating profit are likely to see slight improvement year-over-year in 2013.
Note on prior-year figures:
Prior-year figures 2012 were adjusted to reflect application of IFRS 11 and the amended version of IAS 19.
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 and center console systems to premium automakers and automotive system suppliers.
Grammer is represented in 18 countries worldwide with a workforce of approx. 9,000 employees across its 26 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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| 210198 08.05.2013 |