DGAP-Ad-hoc: Grammer AG / Key word(s): Incoming Orders
Disclosure of inside information in accordance with Art. 17 MAR
As a result of the significantly lower level of orders, in addition to the corresponding smaller number of new projects in the Automotive segment, costs of development, sales and projects respectively, incurred for this activity area, can now no longer be allocated to the new projects and invoiced to customers through such orders, as planned. Accordingly, those costs burden the current business yearꞌs operating earnings. The lower level of orders also necessitates capacity adjustments in the development, sales and project management activities. In total the cost burden in the current business year, due to the non-award of new orders and follow-up orders, comprises around EUR 10 million in the automotive segment; a part of this amount has already been accounted for in the third quarter of 2017.
Despite this additional cost burden, resulting from the non-award of new orders and follow-up orders, Grammer AG continues to expect a very positive operating EBIT for the business year 2017, above the previous year's level. However the Grammer Group operating EBIT margin is projected to fall short of the full year target figure of around 5%, but is still expected to be slightly higher than previous year's figure of 4.0%. From today's point of view there is no need to adjust Grammer Group's midterm projections.
Phone: 0049 9621 66 2200
13-Oct-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Phone:||+49 (0)9621 66-0|
|Fax:||+49 (0)9621 66-1000|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|
618865 13-Oct-2017 CET/CEST