DGAP-News: Grammer AG
/ Key word(s): Quarter Results
Grammer asserting itself in a difficult market environment
- Group revenue up 14 percent in the first nine months, rising to EUR 1.5 billion
- Operating EBIT at EUR 59.2 million slightly above the previous year
- Overall market conditions and operational topics impact the profitability in the third quarter
- Global efficiency enhancement program initiated to optimize operational processes and cost structures
Despite the weak third quarter, Group earnings before interest and taxes (EBIT) came to EUR 61.9 million in the period under review, up EUR 34.0 million on the previous year's figure of EUR 27.9 million. However, it should be noted that the previous year had been burdened by heavy non-recurring extraordinary costs. The EBIT margin doubled, rising to 4.0 percent (2018: 2.1 percent). Net profit thus amounted to EUR 28.4 million, compared with EUR 14.9 million in the same period of 2018.
Adjusted for currency-translation and non-recurring effects, operating EBIT came to EUR 59.2 million in the first nine months, only slightly above the previous year's figure of EUR 56.6 million. The operating EBIT margin declined from 4.2 to 3.8 percent due to the difficult market environment and various operational topics.
"Conditions in the automotive and commercial vehicle sectors have deteriorated significantly worldwide. The Grammer Group is also feeling the effects of these rising challenges, but we have been able to assert ourselves relatively well so far," says Thorsten Seehars, CEO of Grammer AG, commenting on the current situation. "Nevertheless, we must do our homework now in order to prepare for a possibly prolonged period of market weakness. We will be evaluating and implementing further appropriate measures to enhance our operational processes and review Grammer's strategic priorities with the global management team."
Growth in the Americas and Asia, revenue down in Europe
Topline growth in both divisions
In the Automotive Division, revenue climbed by 18.0 percent or EUR 169.6 million to EUR 1,112.3 million. The increase resulted primarily from the acquisition of the TMD Group, which had been consolidated for the first time in October 2018. As a result, operating EBIT increased to EUR 31.7 million (2018: EUR 24.6 million).
Global efficiency enhancement program initiated
In the absence of any further significant exceptional expenses in 2019, the Executive Board expects to be able to report EBIT well in excess of the 2018 figure of EUR 48.7 million in absolute terms. EBIT amounted to EUR 61.9 million as of September 30, 2019. The operating EBIT margin (adjusted for exceptional expenses and currency-translation effects) will remain at the current level of 3.8 percent in 2019 as a whole (previously above 4.1 percent).
The Grammer Group's full quarterly statement on the first nine months is available from the corporate website at the following link:
About Grammer AG
Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, Grammer supplies headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, forklifts) as well as train and bus seats. With approximately 15,000 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.
Phone: 0049 9621 66 2200
12.11.2019 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|
|EQS News ID:||910293|
|End of News||DGAP News Service|