Grammer AG / Quarter Results 10.11.2009 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Group revenue stabilizes at a low level - restructuring and cost-cutting having a positive impact Turnaround in Q3 - Automotive positive Sales difficulties persist in the Seating Systems division Q3 Group-EBIT EUR -5.2 million (Q2 09: -10.9) Amberg, November 10, 2009 - In the third quarter, GRAMMER AG Group revenue totaled EUR 176.8 million, and was thus 26 % down from the prior-year level and still affected by the effects of the worldwide financial and economic crisis. For the first nine months of the year, GRAMMER AG has generated Group revenue of EUR 518.5 million (2008: 787.4). As expected, EBIT is negative after the first three quarters and, at EUR -24.7 million, is down substantially from last year's level of EUR +23.5 million. Although Q3 EBIT was once again negative at EUR -5.2 million, the considerable improvement from the second quarter level of EUR -10.9 million indicates that the rapid reaction of the company with restructuring measures is now having a positive effect. The EUR 12.2 million in one-off expenses for implementing the measures burdened results in the first nine months of the year. In the context of capacity adjustment and cost-cutting, significant staffing reductions have been carried out. At the reporting date on September 30, 2009, GRAMMER AG employed 7,265 people worldwide, which is 2,070 fewer than the same date in 2008. Turnaround in Q3 - Automotive positive The Automotive markets seem to have overcome the worst of the crisis. Revenue in GRAMMER AG's Automotive division fell to EUR 124.4 million (2008: 149.6). However, as compared to the second quarter of 2009 (Q2 09: 116.8), this again represents an improvement in revenue. Despite weaker revenue, the Q3 profit of EUR 0.8 million represents a significant EUR 3.3 million increase in earnings over the EUR 2.5 million loss in the same quarter last year. This is attributable to the operational changes and restructuring measures undertaken, which shows that the company's reaction to the crisis was timely and effectively implemented. Seating Systems: orders remain weak After a substantial revenue decline in the second quarter, the weak order situation in the Seating Systems division continued in the third quarter as well. As compared to the previous year, revenue sank to EUR 57.8 million, which equates to a decrease of 38 %. The performance of the division was equally poor in all business segments. After the fall-off in the second quarter, the unsatisfactory order situation in the truck business continued, as did the substantially lower volume of demand in the offroad segment. This situation was compounded by seasonal effects as the result of the summer production stops among OEMs. Railway business also saw negative development. Consequently, revenue in Seating Systems over the first nine months of the year declined to EUR 183.7 million. At EUR -3.9 million (Q2 09: -5.4), EBIT was higher compared to the previous quarter. The cost-cutting measures prevented a further decline. Balance sheet With total assets of EUR 490.3 million (December 31, 2008: 481.0), GRAMMER AG had equity totaling EUR 147.7 million at the end of the third quarter (December 31, 2008: 173.0). As a result of the year-to-date loss, the equity ratio is down on the previous year at 30 % (December 31, 2008: 36). Group investment in the first nine months totaled EUR 19.8 million (2008: 22.3). In the Automotive division, investments were almost on par with the previous year at EUR 13.6 million (2008: 14.0), and largely went towards the expansion of production capacities. In Seating Systems, investments from January to September totaled EUR 6.0 million. Outlook With a view to the business situation in the first nine months of 2009 and in light of the only gradual improvement of the economic environment, our outlook for GRAMMER Group remains very subdued. Additional costs must be reckoned as a result of the initiated restructuring measures and workforce reductions, which will likely lead to a loss for the fiscal year as a whole. Note to the press: The GRAMMER interim report January to September 2009 is available for download from 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. 7,200 employees across its 24 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 Tel. +49 (0)9621 662200 Email: investor-relations@grammer.com 10.11.2009 Financial News distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|] --------------------------------------------------------------------------- Language: English Company: 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, Düsseldorf, Stuttgart, Hamburg End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Grammer AG: Group revenue stabilizes at a low level - restructuring and cost-cutting having a positive impact
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