DGAP-News: Grammer AG: Higher revenue in the first half of the year despite substantial contraction of commercial vehicle markets


DGAP-News: Grammer AG / Key word(s): Preliminary Results/Half Year
Results
Grammer AG: Higher revenue in the first half of the year despite
substantial contraction of commercial vehicle markets

30.07.2015 / 20:30

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Grammer AG: Higher revenue in the first half of the year despite
substantial contraction of commercial vehicle markets

6 percent increase in Group revenue to EUR 710.2 million in the first half
of the year

Strong contraction in the Brazilian and Chinese truck markets as well as in
the global agricultural machinery sector exerting strain on the Seating
Systems Division

EBIT at EUR 24.6 million in the first half of the year

Outlook for 2015: revenue forecast confirmed, EBIT forecast lowered due to
weak market conditions

Amberg, July 30, 2015 - According to preliminary figures, the Grammer
Group's revenue continued to grow as planned over the previous year in the
first half of 2015. The dynamic development of the Automotive Division
caused consolidated revenue to rise by 6 percent over the previous year to
EUR 710.2 million (2014: 669.6).

The Seating Systems Division, which produces suspended seats for trucks,
construction and agricultural machinery, buses and trains, came under
pressure from an unexpectedly significant decline in core markets in the
first half of 2015, with this trend worsening in the second quarter in
particular.

New registrations of heavy trucks in Brazil, an important market for
Grammer, unexpectedly slumped by almost 50% over the already weak previous
year. In addition, the Chinese commercial vehicle market - particularly
trucks and construction machinery - slowed significantly, dropping
drastically by more than 30% over the previous year in the first six
months. At the same time, global sales of agricultural machinery contracted
again significantly, resulting in a strong decline in demand for suspended
seats for large tractors and harvesters in particular.

These simultaneous negative trends in the Seating Systems Division, which
is characterized by higher margins, resulted in burdens which the continued
favorable business development of the Automotive Division and the
cost-cutting measures already implemented were not able to fully compensate
for. This caused EBIT to drop to EUR 24.6 million in the first half of 2015
(2014: 30.9).

In response to the still difficult market situation, the absence of the
market recovery which had been expected in Brazil and in the agricultural
machinery sector for the second half of the year as well as the unexpected
contraction in the commercial vehicle market in China, it is necessary to
adjust the full-year EBIT forecast for 2015. In addition, demand for trucks
in Brazil is now expected to remain under pressure over a protracted period
of time, thus necessitating additional structural measures at Grammer's
local production facility. In view of these negative determinants, Grammer
now expects EBIT in 2015 to drop by around EUR 15 million compared to the
previous year to EUR 42 million. Thanks to the continued dynamic
development of the Automotive Division, the Group confirms its revenue
forecast and despite the pronounced weakness of the Seating Systems
Division continues to project an appreciable increase in consolidated
revenue over the previous year to more than EUR 1.4 billion.


Grammer AG will be releasing its full report on the first half of 2015 on
August 5, 2015.

Company Profile
GRAMMER AG, Amberg, Germany, specializes in the development and production
of components and systems for automotive interiors as well as driver and
passenger seats for offroad vehicles. In the Automotive Division, we supply
headrests, armrests and center console systems to premium automakers and
automotive system suppliers. The Seating Systems Division comprises the
truck and offroad seat segments as well as train and bus seats.

Grammer is represented in 20 countries worldwide with a workforce of over
10,700 employees across its 30 subsidiaries.

The GRAMMER share is listed in the SDAX and traded on the Frankfurt and
Munich stock exchanges via the electronic trading system, Xetra, as well as
in over-the-counter trading at the Stuttgart, Berlin and Hamburg stock
exchanges.




Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
investor-relations@grammer.com



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Language:    English                                                  
Company:     Grammer AG                                               
             Postfach 14 54                                           
             92204 Amberg                                             
             Germany                                                  
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:      Regulated Market in Frankfurt (Prime Standard), Munich;  
             Regulated Unofficial Market in Berlin, Dusseldorf,       
             Hamburg, Stuttgart                                       
 
 
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