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GRAMMER AG — Earnings Release 2012
Mar 27, 2013
186_rns_2013-03-27_ddf7fcb6-49f8-473a-929d-b6dca9c61d9f.html
Earnings Release
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Corporate | 27 March 2013 06:54
Full Year Results 2012 – GRAMMER AG continues to grow in difficult market environment
Grammer AG / Key word(s): Final Results
27.03.2013 / 06:54
GRAMMER continues to grow in difficult market environment
Group revenue sets a new record at EUR 1.144 billion
Net income up 10 percent
Strong cash flow and significant reduction of net debt
Dividend proposal of EUR 0.50 per share
Amberg, March 27, 2013 – Grammer Group underscores its growth ambitions by setting a new revenue record once more in 2012. The global automotive supplier and leading manufacturer of seating systems for commercial vehicles generated worldwide revenue totaling EUR 1.144 billion, adding nearly 5 percent to last year's record of EUR 1.094 billion. Operating earnings before interest and taxes (EBIT) in the reporting year totaled EUR 47.3 million, only slightly down from the very good prior-year level of EUR 49.4 million; despite planned startup costs for new truck seat generation and the dramatic decline in the Brazilian truck market.
After interest and taxes Grammer Group achieved a net income of EUR 24.4 million, which is 10.4 percent more than in 2011 (2011: 22.1). Earnings per share totaled EUR 2.17, markedly higher than the prior year (2011: 2.02).
Cash flow from operating activities increased as a result of the operating profit and optimization measures in working capital to EUR 62.9 million (2011: 58.0). And, free cash flow was also much improved at EUR 19.3 million (2011: 14.2).
Higher dividend proposed
As in the previous year, when Grammer distributed a dividend of EUR 0.40 per share for the first time since 2008, Grammer shareholders should benefit from the successful performance in 2012 business year as well. Consequently, the Executive and Supervisory Boards will propose to the Annual General Meeting the payment of a dividend in the amount of EUR 0.50 per share. 'Through our good international presence, we were able to compensate for weakness in regional markets and improve our market position in a difficult environment,' says Hartmut Müller, CEO of Grammer AG. 'As announced, we intend to see the owners of this company participate in this success.'
Performance varies regionally
Revenue growth varied regionally throughout the Group. In Europe, revenue increased by EUR 18.7 million to EUR 743.1 million (2011: 724.4), or 2.6 percent, despite considerable contraction in car and truck markets. Even with the unexpectedly severe decline in the Brazilian truck market, revenue in the Americas region was once more slightly higher in 2012, on the back of new production starts and a further recovery of the NAFTA markets, amounting to EUR 233.1 million (2011: 220.7). In Asia the business situation remains positive and revenue increased by 12.8 percent to EUR 167.4 million (2011: 148.4).
Automotive division benefits from focus on premium segment
The Automotive division, in which Grammer produces interior components for premium car manufacturers and automotive system suppliers, generated a revenue increase of 4.5 percent in 2012 to EUR 711.1 million (2011: 680.3). The contribution of the Automotive division to Group revenue increased slightly to 61.3 percent (2011: 60.8). This was carried largely by new production starts, strategic expansion of the center console product base and good sales numbers among German premium car manufacturers. Operating earnings before interest and taxes (EBIT) totaled EUR 30.5 million (2011: 26.9) and therefore continuing the positive trend of the prior years.
Moderate rise in Seating Systems revenue
The Seating Systems division, which develops seats for trucks, offroad vehicles, busses and trains, generated revenues of EUR 449.7 million (2011: 438.0) in a very difficult environment in 2012. As a result of planned startup costs for the new generation of truck seats and the unexpected downturn hitting the market in Brazil, earnings before interest and taxes (EBIT) suffered a small setback, falling from EUR 30.6 million to EUR 24.7 million in 2012.
Optimized Group financing
On the balance sheet date, December 31, 2012, the total assets of Grammer Group were higher at EUR 669.4 million (2011: 625.2), as a result of positive business development. Equity rose to EUR 228.0 million (2011: 211.2) and the equity ratio was held steady at a high level of 34 percent (2011: 34). As of December 31, 2012, the Group holds more than EUR 73.3 million in cash and equivalents, to be used primarily for the expansion of the Group's M&A activities and to strengthen the business segments driving growth. Net financial liabilities were reduced substantially, by 17 percent to EUR 76.3 million (2011: 92.1). Accordingly, net gearing (the ratio of net debt to equity) was considerably lower at 33 percent (2011: 44 percent). 'After the restructuring of the financing in 2011, Grammer has continued to further optimize financing costs and structures in order to sustainably strengthen the financial situation of the Group,' says Volker Walprecht, CFO of Grammer AG.
IFRS one-time equity effects announced for Q1 2013
As a result of revaluation of pension provisions due to changes in the IFRS accounting standard IAS 19 along with prospective application of IFRS 11 starting January 1, 2013 ('At Equity' consolidation of a joint venture), Grammer Group's equity will see a one-off reduction by roughly EUR 16 million in the first quarter of 2013 with no effect on income. These new standards are being applied for the first time in the current fiscal year. An explanation will be included in the 2013 Q1 report.
Outlook 2013
In view of the business situation in the initial months of 2013 and in light of the ongoing instability of the economic environment, our outlook on the performance of GRAMMER Group is cautiously positive. At the start of the ongoing fiscal year, however, no full-scale economic recovery in Europe can be expected. For 2013, Grammer foresees a stable performance overall in the company's core markets. Accordingly, its established international presence afford Grammer good chances for further growth and improved market positioning in core markets as 2013 progresses. Subject to stable economic conditions, overall sales and operative earnings should be slightly better than in the previous year.
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 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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| 205280 27.03.2013 |