DGAP-News: Grammer AG / Key word(s): Quarter Results
Grammer starting off the year with solid figures in the first quarter of 2018
- At EUR 454.4 million, revenue again at a very high level
- Operating EBIT of EUR 20.5 million and operating EBIT-margin of 4.5 percent reflect successful operating performance
- Gratifying performance in the Commercial Vehicles Division
- Full-year forecast for 2018 confirmed: Further growth in revenue and profitability
Grammer's operating profitability also remained solid in the first quarter, although the operating EBIT of EUR 20.5 million fell somewhat short of the previous year's very strong figure of EUR 23.1 million. This translated into an operating EBIT-margin of 4.5 percent (2017: 5.0). During the period under review, there were no exceptional effects and only minor currency translation effects influencing operating earnings.
Gratifying performance in the Commercial Vehicles Division
Revenue in the Automotive Division contracted by 6.4 percent to EUR 313.9 million (2017: 335.5) primarily as a result of lower revenues from development projects and the phase-out of existing models together with the ensuing ramp-up of replacement products. EBIT dropped to EUR 9.7 million (2017: 14.0), with the EBIT-margin coming to 3.1 percent (2017: 4.2). In addition to the lower volumes compared with the previous year, the uncovered development, selling and project costs particularly exerted pressure on operating performance in this Division. Moreover, the Automotive Division experienced a large number of model-related new product launches - including with new customers - and the ramp-up of series projects in North America in particular in the first quarter of 2018. As expected, this caused shortfalls in labour productivity and process efficiency in the production area.
"The first quarter lived up to our expectations and overall we are satisfied with our business performance. There is strong worldwide demand for our innovative products in all segments. We were able to continue growing in our domestic EMEA market as well as in Asia (APAC)," says Hartmut Müller, Chief Executive Officer of Grammer AG. "We knew that we would be facing a number of challenges in the Automotive Division in particular at the beginning of the year. Accordingly, we have already taken comprehensive measures to boost productivity and efficiency in order to rectify the shortfalls in the Automotive Division."
Development of IFRS EBIT
Grammer AG had total assets of EUR 1.1 billion as of March 31, 2018 (2017: 1.2). At EUR 325.8 million, equity was slightly down on the previous year's figure of EUR 351.0 million, while the equity ratio stood at 30 percent, thus remaining steady at the previous year's level (2017: 30) and coming close to the figure of 31 percent recorded in consolidated financial statements for 2017. This decline was primarily due to the first-time application of IFRS 15.
Full-year guidance for 2018 confirmed
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14.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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