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
| Source: EQS Group AG