DGAP-Adhoc: Grammer AG: Prel. Results 2008 / Forecast HY1 2009 / Executive Board proposes no dividend

Grammer AG / Preliminary Results/Forecast

23.02.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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GRAMMER achieved revenues of roughly one billion euros in 2008
EBIT 2008 about EUR 32 million at last year's level
Profit after tax lower
Expectations for the first half-year 2009
Executive Board proposes no dividend

Amberg, February 23, 2009 - As expected, GRAMMER AG has succeeded in
increasing 2008 revenue by roughly one percent to EUR 1,007 million and
achieved an EBIT of around EUR 32 million, which is at last year's level of
EUR 32.1 million, despite the difficult market conditions. Adjusted for
one-time expenses of about EUR seven million, operating profit increased
significantly compared to the previous year. Whereas the Automotive
division saw a revenue decline of three percent to EUR 638 million (2007:
EUR 658 million), the Seating Systems division increased revenue by seven
percent to EUR 390 million (2007: EUR 363 million). During the first half
of 2008 in particular, the Seating Systems segment demonstrated
considerable growth, before both divisions experienced a substantial
falloff in the second half - accelerating in the fourth quarter - as a
result of the financial crisis. Results of the Automotive division were
also burdened by costs associated with significant restructuring measures.
Due to global financial turbulences the currency and commodity spot-markets
showed extreme fluctuations during the last weeks of the reporting year
which caused significant losses in our financial result at year-end.
Because of that the company is expecting a profit after tax for 2008 in a
range of EUR 12 to 14 million (2007: EUR 17.6 million).

Compared to September 30, 2008 the net financial debt at year-end could be
decreased from EUR 109 million to estimated EUR 85 million.

GRAMMER AG expects difficult market conditions in 2009 as a result of the
financial crisis. Already in the fourth quarter of 2008, the Automotive
division experienced a substantial reduction in orders received, a
situation that has also affected the Seating Systems division since the
beginning of this year. Lower demand is expected to continue throughout the
first half of 2009, reducing sales by 25 to 30 percent. In addition to
actions already implemented, such as short-time work, production
relocations and reductions in the number of temporary workers, further
structural capacity adjustment measures, especially headcount adjustments,
will be necessary. Against this background a negative EBIT is expected for
the first half of 2009.

Given the still limited visibility and high degree of uncertainty with
respect to the development of customer orders, the company can currently
make no forecast of full-year 2009 results. Based on the present situation,
however, a rapid and strong recovery of the markets is not anticipated.

In light of the considerable uncertainty in the economic outlook and the
substantial financial burden due to the structural measures to be expected
in 2009, the Executive Board of GRAMMER AG will propose to the Supervisory
Board that no dividend be paid for the 2008 fiscal year, despite the
positive development last year.

GRAMMER AG will present its annual financial statements in full at the
press conference on March 31, 2009 in Frankfurt/Main.



GRAMMER AG
Ralf Hoppe
VP Investor Relations
Phone: +49 9621 66 2200
E-Mail: ralf.hoppe@grammer.com 



DGAP 23.02.2009 
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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
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