GRAMMER Aktiengesellschaft
Grammer continuing strong revenue growth with higher profitability
DGAP-News: Grammer AG / Key word(s): 9-month figures Grammer continuing strong revenue growth with higher profitability Group revenue up almost 20 percent, rising to EUR 1.27 billion in the first nine months 67 percent increase in EBIT to EUR 49.6 million Full-year guidance for 2016 confirmed Amberg, November 9, 2016 – The extremely successful business performance of the Grammer Group, a global supplier of interior components for passenger vehicles and seating systems for commercial vehicles, continued in the third quarter of the current year. In the first nine months of 2016, Group revenue rose by 19.8 percent to EUR 1.27 billion (2015: EUR 1.06 billion). This favorable performance was primarily driven by the Automotive Division, which achieved strong growth in console business, as well as the successful integration of the former REUM Group. Market conditions in the company’s second division – Seating Systems – remained challenging in some regions, particularly Brazil, China and the United States. Despite this, the division posted higher revenue in the first nine months compared with the same period in the previous year. The Grammer Group’s operating EBIT almost doubled to EUR 47.6 million (2015: EUR 26.7 million), thus reaching the Group’s own expectations and targets for sustained growth of its enterprise value. This gratifying performance was particularly due to the positive effects from the implementation of cost and process optimization measures. Driven by the successful business operations in both divisions, Group earnings before interest and taxes (EBIT) grew at a disproportionately strong rate by 67 percent, rising from EUR 29.7 million to EUR 49.6 million in the first nine months despite the lower currency-translation gains compared with the previous year. Reflecting this, the EBIT margin widened to 3.9 percent (2015: 2.8 percent). Group net profit after tax also rose very substantially to EUR 25.6 million (2015: EUR 16.7 million) in the first nine months.
Operating EBIT rose to EUR 11.8 million in the third quarter (2015: EUR 8.7 million). In the third quarter, EBIT increased very sharply to EUR 13.2 million (2015: EUR 5.1 million). Group net profit came to EUR 4.3 million in the third quarter (2015: EUR 3.1 million). Increase of almost 30 percent in revenue in the Automotive Division accompanied by a substantial improvement in profitability In the third quarter as well, revenue in this division rose very substantially over the previous year by almost 25 percent to EUR 306.1 million (2015: EUR 246.0 million). Earnings before interest and taxes (EBIT) came to EUR 7.7 million and were thus 148 percent up on the same quarter in the previous year. Higher revenue and higher EBIT margin in Seating Systems Division despite persistent market weakness In view of the usual seasonal effects, revenue came to EUR 110.1 million in the third quarter and was thus in line with the previous year (2015: EUR 110.3 million). Despite this, EBIT increased very sharply to EUR 8.4 million (2015: EUR 3.5 million). At the same time, the EBIT margin rose to 7.6 percent in the third quarter (previous year 3.2 percent). Full-year guidance for 2016 confirmed The full-year revenue of the GRAMMER Group (including the REUM Group) is still expected to rise by over 15 percent over the previous year to more than EUR 1.66 billion in 2016. At over EUR 60 million, Group EBIT will also be very substantially up on the previous year. This places the GRAMMER Group firmly in its target corridor for a further sustained increase in revenue and profitability over the next few years. Company profile In the Automotive Division, we supply headrests, armrests, center console systems and high-quality interior components and operating systems to premium automakers and automotive system suppliers. The Seating Systems Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, forklifts) as well as train and bus seats. With over 12,000 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the SDAX and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra. Contact: GRAMMER AG Ralf Hoppe Phone: 0049 9621 66 2200 investor-relations@grammer.com
2016-11-09 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English | |
Company: | Grammer AG | |
Georg-Grammer-Str. 2 | ||
92224 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, Tradegate Exchange | |
End of News | DGAP News Service |