GRAMMER achieves record results in 2011
Group revenue 18 percent higher at EUR 1.1 billion
Group-EBIT up 50 percent to EUR 49.4 million
Dividend reinstated, proposed at EUR 0.40 EUR per share
Amberg, March 29, 2012 – Grammer AG, automotive supplier and leading manufacturer of seating systems for commercial vehicles, achieved the best revenue results in its 50-year history during the 2011 fiscal year. Fuelled by dynamic worldwide demand for agricultural machines and trucks, as well as strong exports by German carmakers, Grammer AG improved Group revenue by 18.0% to EUR 1,093.5 million (2010: 929.7). Double-digit growth in both company divisions contributed to this outstanding result. Revenue in the Seating Systems division increased 28.1%, along with 11.5% in the Automotive division. Compared to 2010, earnings before interest and taxes (EBIT) improved by more than 50 percent to a new absolute record of EUR 49.4 million (2010: 32.9), despite sometimes intense volatility in commodity and currency markets. After interest and taxes, Grammer's net profit totaled EUR 22.1 million in 2011 (2010: 16.3). Earnings per share came in at EUR 2.02 (2010: 1.60).
Dividend payment planned
Given the positive earnings situation, Grammer AG intends to pay out a dividend for the first time since 2008. At the Annual General Meeting on May 23, 2012, the Executive and Supervisory Boards will propose payment of a dividend in the amount of EUR 0.40 per share for the 2011 fiscal year. 'With our structural re-alignment we now have a good basis for the strategic development of Grammer Group. We will continue to pursue our successful strategy and continue to invest in new markets and products in the future,' says Hartmut Müller, CEO of Grammer AG.
As of December 31, 2011, as a result of the continuing positive earnings situation and the capital increase to optimize financial structures, the company's equity rose substantially to EUR 211.2 million (2010: 173.1). Despite the expanded scope of business and first-time consolidation of electronics specialist Grammer EiA Electronics N.V., Aartselaar, Belgium, which was acquired in the summer, the equity ratio was 34% (2010: 31) on the reporting date. Investments excluding M&A activity totaled EUR 37.6 million last year, roughly in line with previous year (2010: 38.1). Nevertheless, Grammer was able to generate a clearly positive free cash flow of EUR 14.2 million (2010: -5.9). The Group's net financial debts also developed very favorably. As of December 31, 2011, these amounted to EUR 92.1 million, which is more than EUR 20 million less than at the previous year's reporting date. The gearing ratio was down considerably, falling by 22 percentage points to 44% (2010: 66).
As of December 31, 2011, Grammer Group employed 8,726 people worldwide, 771 more than in the previous year (2010: 7,955). The increase of around 9.7% is proportionally far lower than the rate of revenue growth. Thus, Grammer Group further reduced its compensation ratio.
Regionally diverse growth
Regional revenues saw varied development throughout Grammer Group in 2011. The most pronounced increases were in Europe. As a result of strong performance in agricultural machines and high demand for premium German cars, revenue in Europe increased to EUR 727.4 million (2010: 595.2), growing at 22% slightly higher than overall revenues. In the America region, revenue was once again higher, rising 13% to EUR 220.7 million (2010: 195.2), following a 65% increase in 2010. As expected, growth in the Asia region has normalized. Revenue, however, was up approximately 7% to EUR 148.4 million (2010: 139.3). 'In the coming years, we plan to further strengthen our presence in Asia and America, in order to benefit from our customers' growth in those regions while simultaneously reducing dependence on individual markets,' explains Hartmut Müller.
Seating Systems division continues to drive growth
Thriving demand in offroad and truck business led to strong 28.1% growth in the Seating Systems division to EUR 438.0 million (2010: 341.9). In particular, persistent high demand in the offroad segment helped Grammer to improved operating profit. Dynamic growth in this highly profitable business segment, along with cost optimization measures over the past several years pushed operating profit almost 75% higher to EUR 30.6 million (2010: 17.6). The operating margin also improved by nearly 2 percentage points to 7.0%. Investment in the Seating Systems division were up, particularly as a result of set-up of truck seat production capacities for the new generation MSG 115 in Germany and the Czech Republic, to EUR 22.0 million (2010: 15.8).
Automotive division benefits from demand for premium cars
In the Automotive division, the main impetus last year came from the premium segment and the sustained strength of German car exports. Increasing volumes of new German premium vehicle sales and new production launches in 2011 helped the Automotive division to an 11.5% improvement in revenue to EUR 680.3 million (2010: 610.2). The rise in operating earnings before interest and taxes (EBIT) outpaced earnings, increasing 26% to EUR 26.9 million (2010: 21.4), and the EBIT margin improved to 4.0% (2010: 3.5). At EUR 14.8 million in 2011, investment volume was down as planned by roughly EUR 7 million year-over-year in the Automotive division, following high capital expenditures in prior years. The emphasis of investment was on new production facilities for pending customer projects as well as expansion of the Changchun/China, Mexico and Schmölln/Germany locations.
Outlook 2012
Grammer expects that worldwide market growth will normalize after the high growth rates over the past two years. For 2012 Grammer expects a positive order development on previous year's level or slightly above due to stable core markets and new product launches.
Subject to a stable development of the product launches and economic conditions, Grammer expects a positive development of revenues and earnings in 2012.
Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
investor-relations@grammer.com