DGAP-News: Grammer AG / Key word(s): 9-month figures
- 5.8 percent increase in Group revenue to EUR 1.34 billion
- Substantial 23.4 percent increase in operating EBIT to EUR 58.6 million testifying further improvements of the operational performance
- Persistent restraint on the part of individual premium OEMs in awarding new contracts to Grammer
- Adjusted EBIT forecast reflecting strain from uncovered development and project costs arising from shortfall in new orders
Higher revenue in all regions
The Grammer Group grew in all regions in the first nine months - albeit at differing rates. In its domestic EMEA market, Grammer achieved a small 1.5 percent increase in revenue to EUR 919.4 million (2016: 906.1). The greatest growth was recorded in the Americas, where revenue climbed by 20.3 percent to EUR 216.6 million (2016: 180.1) APAC revenue also grew very substantially by 13.3 percent to EUR 202.9 million (2016: 179.1).
At EUR 25.7 million, net profit for the year to September 30, 2017 thus remained at the previous year's level (2016: 25.5).
Adjusted for currency translation effects and exceptionals in connection with the attempted change of control, the improved profitability is readily apparent: Despite the additional strain arising from the uncovered development and project expenses, operating EBIT rose substantially by 23.4 percent to EUR 58.6 million (2016: 47.5). Likewise, the operating EBIT margin widened to 4.4 percent and was, thus, substantially up on the previous year's already increased figure (2016: 3.8).
"The exceptional challenges this year have been mastered very well by all employees and we could achieve important strategic and operational milestones. However, order intake for new project remained unsatisfactory in the third quarter and has impacted operative earnings. Even so, we were generally able to improve our operating performance substantially and are well positioned for further profitable growth", says Hartmut Müller, Chief Executive Officer of Grammer AG.
Particularly strong growth in Commercial Vehicles Division
Adjusted EBIT forecast reflecting strain from uncovered development and project costs arising from shortfall in new orders
Despite this additional cost pressure due to the shortfall in new and follow-up orders, however, Grammer AG still expects to achieve very strong operating EBIT in 2017 as a whole well in excess of the previous year's level. Even so, the Grammer Group's operating EBIT margin will no longer reach the target of around 5 percent, although it should still exceed the previous year's figure of 4.0 percent slightly. At this stage, an adjustment to the medium-term forecast for the Grammer Group is not necessary.
Looking forward, Grammer will continue to steadily implement its corporate strategy with the aim of additionally improving profitability and shareholder value. A further clear sign pointing to the company's continuity and reliability can be seen in the renewal of the contracts of the two Executive Board members Gérard Cordonnier (CFO) and Manfred Pretscher (COO) by a further three years. CEO Hartmut Müller's contract had previously been renewed by five years in May 2016.
The Grammer Group's full interim report on the first nine months of 2017 is available from the corporate website at the following link:
Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspension driver and passenger seats for onroad and offroad vehicles.
Grammer shares are listed in the SDAX and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.
Phone: 0049 9621 66 2200
13.11.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|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 News||DGAP News Service|