Grammer AG / Quarter Results
12.05.2009
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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Revenue and earnings at GRAMMER AG significantly impacted by demand
fall-off in the first-quarter
Decline in demand hits both divisions
EBIT at EUR -8.6 million after restructuring costs
Solid financial basis ensures flexibility
Amberg, May 12, 2009 - As a result of the financial and economic crisis,
revenue for the first quarter of 2009 at GRAMMER AG, manufacturer of
components for cars and commercial vehicles, was down in both of the
company's divisions. The negative results for the quarter largely reflect
one-time expenses for restructuring. The structural measures implemented in
the first quarter will secure the company's prospects for the future.
As a result of the severe slowdown in demand, group revenue was down 35.8
percent to EUR 171.7 million (2008: 267.4) in the first three months of the
year. As expected, consolidated earnings before interest and tax (EBIT)
were negative at EUR -8.6 million (2008: +8.2). In addition to the decline
in revenues, capacity adjustment measures affected results with one-time
expenses totaling EUR 5.5 million. Early implementation of the capacity
adjustment measures served to moderate the impact of the strong decline in
revenues on EBIT, which amounted to EUR -3.1 million after adjustment for
one-off expenses.
Both segments feel the effects of the financial and economic crisis
In the Automotive division, slumping sales at OEMs and customers of GRAMMER
AG showed up as a 39.8 percent decline in revenue to EUR 104.7 million
(2008: 174.0). This is attributable to the sustained weakness of demand,
especially for premium vehicles in Europe and the US. Accordingly,
operating profit in the division fell from EUR 0.2 million in Q1 2008 to
EUR -6.0 million in the reporting period.
In the first quarter of 2009, GRAMMER AG also saw the first significant
decrease in the revenues generated by the previously fast-growing Seating
Systems division, which sank 31.9 percent to EUR 69.5 million (2008:
102.0). This is an effect of weak markets in nearly every product group.
Only in the production of train seats have sales remained stable as
compared to last year. Thanks to the rationalization offensive launched by
GRAMMER AG, however, operating profit (EBIT) in the division has remained
positive at EUR 1.2 million, despite the massive revenue decline.
No signs of recovering demand
'We continue to assume that revenue and earnings performance in 2009 will
be well below last year's levels as a result of weaker sales and the costs
of capacity adjustment,' says CEO, Dr. Rolf-Dieter Kempis regarding
expectations for the current fiscal year. The Executive Board does not
foresee any significant improvement in demand over the next several months.
'Continuation of capacity adjustments and fixed cost reduction will thus
remain the central focus,' says CEO Kempis.
Since the financial and economic crisis began to affect the company last
summer, the number of employees has been reduced in line with the decline
in orders. In March, GRAMMER AG announced that it was cutting 227 jobs in
the Amberg region alone. As of March 31, 2009, GRAMMER Group had 7,773
employees, which is nearly 2,000 fewer than it had on the same date last
year.
Solid basis ensures financial flexibility
With total assets of EUR 447.7 million at the end of the first quarter
(December 31, 2008: 481.0), equity at GRAMMER AG totaled EUR 163.0 million
(December 31, 2008: 173.0). The equity ratio remained more-or-less
unchanged at 34 percent (December 31, 2008: 36). Net debt increased only
marginally from the previous year's level to EUR 88.6 million, while the
ratio of debt to equity (gearing) remained at a solid 54 percent, despite
the fall in revenue and earnings.
Investment
Investment within the Group totaled EUR 8.8 million (2008: 4.9) in the
first quarter. In the Seating Systems division, investments were made
primarily in property, plant and equipment, with EUR 4.3 million spent on
replacements and rationalization. At EUR 4.5 million (2008: 2.3), there was
also an increased in the amount invested in the Automotive division this
year, as new orders for center consoles required building of production
capacities in China.
Note to the press:
The GRAMMER Interim Financial Report for January to March 2009 is available
for download via the Internet on 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
approx. 7,700 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 AG
Investor Relations
Ralf Hoppe
+49 (0)9621 66 2200
investor-relations@grammer.com
DGAP 12.05.2009
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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 AG Interim Report January to March 2009
| Source: EQS Group AG