Grammer AG / Final Results
31.03.2009
Release of a Corporate 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 AG: Stable business performance in 2008 and difficult year expected
in 2009
GRAMMER Group with higher revenues in 2008
EBIT 2008 EUR 32 million at previous year's level
Comprehensive measures implemented to adjust to reduced order levels
Extension of appointment of Dr. Rolf-Dieter Kempis as Chairman of the
Executive Board
Amberg, March 31, 2009 - As expected, GRAMMER AG was able to increase Group
revenue by one percent in the past fiscal year to EUR 1,007.0 million
(2007: EUR 998.1). Despite declining revenue in the fourth quarter in the
wake of the global financial and economic crisis, the Company turned over
more than one billion euros for the first time in its history. Earnings
before interest and taxes (EBIT) also ended in line with guidance at EUR
32.0 million, which is on previous year's level (2007: EUR 32.1). After
tax, GRAMMER earned net profit of EUR 14.1 million. This is substantially
lower than the previous year's EUR 17.6 million, as a result of valuation
write-downs in the financial result at the balance sheet date. Earnings per
share amounted to EUR 1.38 (2007: 1.72). In light of the ongoing very weak
demand situation, however, the Company is anticipating a decline in revenue
by 25 to 30 percent in the first half of 2009, along with negative EBIT.
Number of employees adjusted to account for lower volumes
Due to the consistent adjustment measures already implemented in the second
half of the past fiscal year, the Company was able to reduce the number of
employees by 6.5 Percent as of December 31, 2008 to 8,908 (2007: 9,572).
The ongoing declines in orders as a result of the financial crises have
also made adjustment measures necessary in the current fiscal year. In
addition to introduction of short-time work at all German locations since
mid-January 2009, personnel capacities were systematically adjusted,
especially at the GRAMMER Group locations abroad. Since the end of the
year, a further 1,000 jobs have been cut. Moreover, the Executive Board has
agreed with the works council on the elimination of 227 jobs in the Amberg
region.
Revenue developments differ by region
As a result of the decreasing demand in the second half of 2008, revenue in
Europe fell by EUR 22.4 million to EUR 729.7 million (2007: EUR 752.1).
It's expanded international presence helped the Company to a pleasing
revenue performance in the non-European regions. In Asia, revenue was up by
as much as 20.6 percent to EUR 113.6 million (2007: 94.2), underlining the
strategic importance of the region for GRAMMER. In America , GRAMMER's
excellent market positions enabled the Company, especially in South America
to sell more than it did the previous year. Revenue increased in this
region by 7.8 percent to EUR 163.7 million (2007: EUR 151.8).
Seating Systems division remains growth motor
The Seating Systems division once again made a major contribution to the
increase in revenue within GRAMMER Group, generating sales of EUR 390.0
million (2007: 363.6). A further significant increase was also realized in
EBIT, which climbed 29 percent to EUR 31.0 million (2007: 24.1). The EBIT
margin accordingly reached 8.0 percent (2007: 6.6). 'This outstanding
result is primarily attributable to the very dynamic first half in the
areas offroad and truck, as well as the pleasing performance in the
agricultural segment. Our technically advanced and innovative products
enabled us to further strengthen our leading position in the area of seats
for commercial vehicles in 2008,' says Chairman of the Executive Board Dr.
Rolf-Dieter Kempis.
Automotive division under the weight of the financial and economic crisis
Especially in the last quarter of the year, the Automotive division
struggled with the effects of the financial and economic crisis. Revenue
and EBIT in the division were down substantially. After double-digit growth
rates in the first six months, there was a clear fall-off in demand in the
second half. For the full year, the Automotive division saw a 3.1 percent
decline in revenue to EUR 637.6 million (2007: EUR 657.7). EBIT was down
from EUR 10.7 million in 2007 to EUR 3.1 million this past fiscal year.
This is attributable primarily to difficulties relating to production in
the US and additional expenditures for restructuring. Additionally, a lower
order volumes from automakers beginning in the third quarter of 2008
resulted in further cost disadvantages.
Investments in the future
Investments by GRAMMER Group in property, plant and equipment increased in
the reporting year to EUR 39.9 million (2007: EUR 34.6). The measures
focused on expanding the locations in Shanghai and Schmölln for upcoming
production launches in the areas of center consoles and truck seats, as
well as expansion of low-cost production in sewing operations in Serbia.
Financial position remains solid
'GRAMMER Group remains on solid financial footing. Although net gearing
rose to EUR 80.2 million as a result of the expansion of operations as
compared to the previous year, the 46 percent debt to equity ratio remains
significantly below the 50 percent mark,' says Executive Board member Alois
Ponnath, commenting on the balance sheet. Consequently, the equity ratio
remained stable year-over-year, at 36 Percent.
Executive Board and Supervisory Board propose that no dividend be paid
Despite the positive development last year, the Executive Board and
Supervisory Board of GRAMMER AG will propose at the Annual General Meeting
on May 28, 2009 that no dividend be paid for the 2008 fiscal year, in order
to strengthen the Group's financial position in light of the considerable
uncertainty in the economic outlook and length of the financial crises.
Difficult year expected in 2009
In the wake of the financial crisis, the Executive Board of GRAMMER AG is
anticipating a continuation of very weak demand in the first half of 2009,
and a 25 to 30 percent decline in revenue, along with negative EBIT. 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 expected.
Dr. Rolf-Dieter Kempis continues as Chairman of the Executive Board of
GRAMMER AG
The Supervisory Board resolved at its last meeting to extend the
appointment of Dr. Rolf-Dieter Kempis as Chairman of the Executive Board
and HR-Director of GRAMMER AG for a further year until July 31, 2010.
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
approx. 8,000 employees across its 23 fully consolidated subsidiaries.
Grammer shares are listed in the S-DAX 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 AG
Investor Relations
Ralf Hoppe
+49 (0)9621 66 2200
investor-relations@grammer.com
DGAP 31.03.2009
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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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DGAP-News: GRAMMER Group: Financial Results 2008
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