DGAP-News: GRAMMER Aktiengesellschaft
/ Key word(s): Quarterly / Interim Statement/Quarter Results
GRAMMER AG continues positive business trend in first quarter of 2021
- Revenue and earnings performance benefited in first quarter from improved markets in EMEA and APAC as well as from dynamic sales in Commercial Vehicles
- GRAMMER Group revenue rose by 10.7% to EUR 503.7 million
- Operating EBIT increased in Q1 2021 to EUR 21.0 million
- New reporting structure: EMEA, AMERICAS and APAC regions now the main reportable segments of GRAMMER Group
Ursensollen, April 28, 2021 - GRAMMER Group revenue came to EUR 503.7 million in the first quarter of 2021 (Q1 2020: EUR 454.9 million), representing an increase of 10.7% year-on-year. The marked recovery in business performance from the second half of 2020 continued in the first quarter of 2021, whereas the first quarter of 2020 had already been impacted by the effects of the COVID-19 pandemic. The GRAMMER Group's positive revenue performance in the first quarter was driven mainly by significant revenue growth in APAC of 84.9% to EUR 103.2 million (Q1 2020: EUR 55.8 million) and a revenue increase in EMEA of 4.8% to EUR 291.7 million (Q1 2020: EUR 278.3 million). Both divisions - Automotive and Commercial Vehicles - increased revenue overall, by 4.9% and 24.6%, respectively.
Positive earnings performance due to favorable product mix as well as effective cost and process optimization measures
"We have made a very good start to the new year and further maintained the upward trend from the second half of 2020. The year-on-year growth is attributable to the favorable development in EMEA and significant increases in China," said Thorsten Seehars, CEO of GRAMMER AG, explaining the recent performance.
As planned, the GRAMMER Group continued implementing the restructuring measures launched in fiscal year 2020 in the first quarter of 2021. These include the consolidation of plants in Europe and North America as well as a reduction of the workforce by roughly 300 administrative positions in Germany by mid-2021. Thanks to the voluntary redundancy program adopted for this purpose, GRAMMER has, in a socially responsible manner, already achieved the target of a sustainable reduction in structural costs set for 2021.
EMEA revenue came up to EUR 291.7 million (Q1 2020: EUR 278.3 million), marking an increase of 4.8%. This was mostly driven by the positive performance of the Commercial Vehicles Division, which generated 16.0% revenue growth to EUR 127.1 million (Q1 2020: EUR 109.6 million). As the region where the Group's highest-revenue companies are located, EMEA thus continued the positive trend from the second half of 2020. Operating EBIT in EMEA came to EUR 18.8 million (Q1 2020: EUR 5.8 million), with an operating EBIT margin of 6.4% (Q1 2020: 2.1%).
The AMERICAS region recorded decrease in revenue by 5.2% in the first quarter. As a result, revenue in the first quarter of 2021 amounted to EUR 131.2 million (Q1 2020: EUR 138.4 million). This was due to a lower number of orders from OEMs because of the global supply shortage of semiconductors. Revenue in the Automotive Division was down 5.9% to EUR 112.5 million (Q1 2020: EUR 119.6 million), while in the Commercial Vehicles Division it was on a par with the previous year's quarter figure of EUR 18.7 million. Operating EBIT in AMERICAS came to EUR -8.5 million (Q1 2020: EUR -6.8 million), corresponding to an operating EBIT margin of -6.5% (Q1 2020: -4.9%).
Further milestones in the expansion of Grammer's local presence in the Chinese market The GRAMMER Group continues to expand its presence in the Chinese market. In this connection, GRAMMER signed an agreement on April 13, 2021 to set up another joint venture with FAW Group. Together with a subsidiary of China's largest commercial vehicle manufacturer, the GRAMMER Group will produce high-quality truck seats for use in many of FAW Jiefang's truck model platforms. The two joint venture partners will benefit from the ongoing trend in China towards state-of-the-art, ergonomic truck driver seats that provide a key differentiating factor for OEMs in what is the world's largest commercial vehicle market. GRAMMER will hold a 60% majority stake in the joint venture.
As a further important step in GRAMMER's growth strategy, the Executive Board decided in April to establish a Chinese headquarters in the city of Hefei (Anhui Province). We see the new headquarters as a platform for launching an even more intensive exchange with existing and potential customers on the requirements of future mobility solutions in Anhui Province, an upcoming center for electromobility in China.
Inspiration for tomorrow's premium interiors
Guidance for 2021 confirmed
GRAMMER has confirmed the guidance published on March 31, 2021 and anticipates that revenue will recover to around EUR 1.8 billion in fiscal year 2021 (2020: EUR 1.7 billion). Based on the budgeting for the three regions relevant to its business performance, GRAMMER expects operating EBIT of roughly EUR 65 million in 2021 (2020: EUR -11.7 million). In fiscal year 2020, by contrast, operating EBIT was hit very hard by the impacts of the global COVID-19 pandemic as well as by costs due to various one-time effects.
Located in Ursensollen, 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 components to automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, and forklifts) as well as train and bus seats. With about 14,000 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 2113
28.04.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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