Grammer AG / Interim Report 12.08.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Grammer on growth course in first-half Restructuring program shows initial financial benefits Revenue and earnings guidance confirmed Amberg, August 12, 2008 Following a successful start in the second quarter characterized by a positive order situation, Grammer Group saw its revenues in both the Automotive and Seating Systems divisions rise significantly in the first half of 2008. The ongoing restructuring program in the Automotive division showed its first financial benefits. The Seating Systems division was able to continue its strong performance in the second quarter. Grammer saw Group revenues grow by 11.4 percent to 547.8 million euros (previous year: 491.9) in the first half of 2008 over the comparable period of the previous year. Thanks to strong incoming orders in all regions, both the Automotive und Seating Systems divisions enjoyed strong growth rates. Consolidated profit before interest and tax (EBIT) of 21.9 million euros were, as expected below the previous years result of 24.3 million euros due to ongoing restructuring measures in the Automotive division. However, the trend is quite positive following adjustment for 4.1 million euros in non-recurring expenses for Group restructuring measures in the first half of 2008. The EBIT of the Seating Systems division again rose sharply, and the Automotive division developed positively compared to the first quarter of 2008 as a result of restructuring activities. Dr. Rolf-Dieter Kempis, chief executive officer, said: 'We are satisfied with the progress of our company in the second quarter. The Seating Systems division continued to develop at a high level. The restructuring of the Automotive division is showing initial successes. We are working hard on improving our efficiency and profitability. Despite the difficult environment, especially with respect to the high price of raw materials, we remain confident that both revenues and consolidated profits for the year as a whole will grow moderately over the previous year.' Strong demand in all regions Grammer enjoyed an increase in revenues in all regions. The company saw significant increases in Europe, Asia and Brazil, where new markets were tapped. In Europe revenues rose 6.8 percent in the first half of the year to 404.1 million euros (previous year: 378.3). Despite the weak US dollar, a positive order situation in North and South America led to a 13.9 percent growth in revenues in this region. Total revenues for this region rose to 82.6 million euros (previous year: 72.5). Asian revenues jumped nearly 50 percent to 61.1 million euros (previous year: 41.1). Seating Systems record increase in EBIT of over 50 percent The positive development experienced by the Seating Systems division in first quarter of 2008 carried over into the second quarter. Thanks to the ongoing positive flow of incoming orders in the offroad, truck, train and bus divisions, revenues rose 16 percent to 210.4 million euros (previous year: 181.5). The increase in EBIT was disproportionately high, jumping 58 percent over the first half of the previous year to 21.1 million euros (first-half 2007: 13.4). The EBIT margin improved from +7.4 percent for the previous years period to +10.0 percent for the period January through June 2008. Reverse trend in EBIT in the Automotive division The Automotive division at Grammer profited from strong customer demand. The broad customer and product portfolio more than compensated for the decline in the sales of vehicles with high fuel consumption. Revenues rose 10.6 percent to 351.2 million euros (previous year: 317.4). But the operating profit, which suffered from ongoing restructuring measures and currency exchange rate developments in the second quarter, fell to 3.6 million euros (previous year: 11.3). Nonetheless, profitability improved over the first quarter of 2008. As a result of our extensive restructuring activities, EBIT rose from 0.2 million euros in the first quarter to 3.4 million euros in the second quarter. Balance sheet total and equity rise Total assets of the Grammer Group as of June 30, 2008 amounted to 531.2 million euros (previous year: 506.9). The increase was mainly due to seasonal fluctuations, the initial consolidation of two companies in Serbia and China on May 1, 2008, and the development of business. Equity improved to 186.6 million euros (previous year: 178.8). The equity ratio as of June 30, 2008 remained stable at 35 percent due to the higher balance sheet total. As of June 30, 2008 Grammer Group had a total of 9,754 employees (previous year 9,333). The growth is attributable primarily to the consolidation of the two companies in Serbia and China as well as increased business. Outlook for the year as a whole confirmed Based on the solid development of business during the first six months and the stable order situation the executive board is confident that the Group will continue to develop positively in the coming quarters. As the result of the muted development in the established passenger car markets and the production cutbacks announced by especially BMW and Daimler, a slower development of revenues in the Automotive division during the second half of 2008 is anticipated. The management remains optimistic about the outlook for Seating Systems and anticipates that business in this sector will remain stable despite a possible decline in the construction industry and increased prices for raw materials. Furthermore, the positive development of business during the current year will be one of the factors that will drive future growth at Grammer Group. The management therefore forecasts a slight increase in revenues and EBIT despite non-recurring expenses for ongoing restructuring, continued exchange rate fluctuations, increased personnel and raw material costs and the possible slowing of the economy. Note to editorial staffs: The Grammer Q2-report 2008 can be downloaded from www.grammer.com. Key Figures of the Grammer Group (IFRS) EUR m. Q2/08 Q2/07 1-6/08 1-6/07 Group Revenues 280.4 254.2 547.8 491.9 Automotive Revenue 177.2 166.6 351,2 317.4 Seating Systems Revenue 108.4 93.2 210.4 181.5 Income Statement EBITDA 19.5 20.2 33.1 36.0 EBITDA margin 6.9% 7.9% 6.0% 7.3% EBIT 13.7 14.2 21.9 24.3 EBIT margin 4.9% 5.6% 4.0% 4.9% Profit before tax 13.0 12.8 17.2 20.3 Profit after tax 8.8 9.1 11.2 12.7 Balance Sheet Balance sheet Total 531.2 506.9 531.2 506.9 Equity 186.6 178.8 186.6 178.8 Equity ratio 35% 35% 35% 35% Net financial liabilities 92.8 74.0 92.8 74.0 Gearing 50% 41% 50% 41% Capital expenditures 8.2 4.7 13.1 11.4 Depreciation 5.8 6.0 11.2 11.7 Employees (Jun 30) 9,754 9,333 Company profile Grammer AG, Amberg, specializes in the development and manufacture of components and systems for automobile interiors as well as driver and passenger seats for off-road vehicles (tractors, construction vehicles, forklifts), trucks, busses and trains. The Seating Systems division manufacturers seats for trucks, off-road vehicles trains, and busses. The Automotive Division supplies head supports, armrests, center consoles and integrated child seats to leading automobile manufacturers in the premium division as well as to system suppliers to the vehicle industry. Grammer has over 9,500 employees in 23 consolidated companies located in 17 countries. Grammer shares are listed in the SDAX index and traded on the Munich and Frankfurt Stock Exchanges, via the electronic platform Xetra as well as in OTC trading on the Stuttgart, Berlin and Hamburg Stock Exchanges. Grammer Investor Relations Ralf Hoppe Tel. +49 9621 66-2200 investor-relations@grammer.com DGAP 12.08.2008 --------------------------------------------------------------------------- Language: English Issuer: Grammer AG Postfach 14 54 92204 Amberg Deutschland Phone: +49 (0)9621 66-0 Fax: +49 (0)9621 66-1000 E-mail: investor-relations@grammer.com Internet: www.grammer.com ISIN: DE0005895403, DE0005895403 WKN: 589540, 589540 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Stuttgart, Hamburg, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Grammer AG - Interim report 1. Half Year 2008
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