Grammer AG / Interim Report 11.11.2008 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 increases revenue in the first nine months Revenue of more than one billion for the first time in 2008 2008 EBIT guidance unchanged Amberg / Germany, November 11, 2008 Grammer AG generated Group revenue of 787.4 million in the first nine months of 2008; a growth of 7.1% over the same period of the previous year. The stable order situation in the Seating Systems division resulted in higher revenue and earnings in the third quarter. The Automotive division continued to be impacted by the restructuring and, additionally, by the lower demand from the automotive industry. Divisional earnings show significant differences After nine months operative earnings before interest and taxes (EBIT) were down on the previous year ( 26.9 million) at 23.5 million. In the third quarter revenue in the Automotive division declined by 13 million compared to the same period of the previous year to 149.6 million due to the difficult economic situation. The Seating Systems division increased revenue by 6% to 93.6 million, on the other hand (previous year: 88.4 million). EBIT were up 9% at 4.0 million (previous year: 3.7 million). Several different factors reduced earnings in the Automotive division: restructuring projects initiated in 2007, the ongoing weakness of the US dollar and location cost development in Eastern European countries led to segment earnings of - 2.5 million (previous year: - 0.2 million). 2008 revenue of more than one billion In spite of the difficult situation in the global automotive industry, Grammer expects total revenue in the current fiscal year to increase to more than 1 billion. This assumption is based not only on a successful first half-year in the Automotive division but especially on the positive development of Seating Systems. In spite of the unfavourable general economic conditions, executive management is expecting 2008 earnings to be in line with the existing EBIT guidance. Executive management anticipates a difficult environment for the Grammer Group in 2009, particularly in the automotive division. Since there is much greater uncertainty because of the international financial crisis and the increased volatility of the currency and raw material markets, a forecast cannot be made at the present time. 'Rapid implementation of the restructuring measurements now has top priority. Personnel cuts, increases in efficiency and relocations to low cost production locations will increase Group profitability in the medium to long term', says CEO Dr Rolf-Dieter Kempis. The measures initiated in fall 2007 to increase efficiency and profitability will have a positive effect on earnings in 2009. Due to the expected economic slowdown, further measures may be necessary in order to counter the effects of the financial crisis. Increase in the balance sheet total At 525.2 million the Group balance sheet total at the end of the third quarter was 5.6% higher than at the end of 2007. Total equity ( 184.2 million) was at the same level as in the previous year and the equity ratio was about 35%. Information to editorial staff: The Grammer interim report January to September 2008 can be downloaded from the company website www.grammer.com. Company Profile Grammer AG, Amberg, Germany is specialized in the development and production of components and systems for automotive interiors as well as driver and passenger seats for offroad vehicles (tractors, construction machinery, forklifts), trucks, buses and trains. Our Seating Systems division comprises the truck and offroad seat segments as well as train and bus seating. In the Automotive division, we supply headrests, armrests, center console systems and integrated child safety seats to premium automakers and automotive system suppliers. Grammer is represented in 17 countries worldwide with a workforce of more than 9,300 employees across its 23 fully consolidated subsidiaries. Grammer shares are listed in the SDAX segment of the German Stock Exchange, and are traded on the Munich and Frankfurt stock exchanges, via the XETRA electronic trading platform and on the OTC markets of the Stuttgart, Berlin and Hamburg stock exchanges. Grammer Investor Relations Ralf Hoppe + 49 9621 662 200 investor-relations@grammer.com DGAP 11.11.2008 --------------------------------------------------------------------------- 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 3rd Quarter 2008
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