GRAMMER News

Grammer achieves substantial revenue growth in the first quarter 2012

Wed, 09 May 2012 00:00:00 +0200

Revenue increases 8.7 % to EUR 285.8 million
At EUR 12.1 million, EBIT matches prior year despite start-up costs Amberg, May 09, 2012 – Grammer AG held to its growth trend once more in the first quarter of 2012, in which the company generated consolidated Group revenue of EUR 285.8 million. Revenue in the period from January to March 2012 were thus up 8.7 % from the previous year (01-03 11: 263.0). The revenue increase was primarily attributable to the Seating Systems division, which benefited once more from ongoing demand strength in the core markets, as well as new product launches. With EUR 12.1 million operating earnings before interest and taxes (EBIT) matched the prior-year quarter (01-03 11: 12.1). The EBIT margin was 4.2 %, and was burdened by product launches and the set-up of new manufacturing facilities for truck seat production. Net profit after tax in the reporting period totaled EUR 7.7 million, up considerably from the first quarter 2011 (01-03 11: 4.9). Grammer invests in new products
Grammer Group invested a total of EUR 7.8 million in the first quarter of 2012 (01-03 11: 9.9). In the Seating Systems division, EUR 4.9 million were invested, primarily in the building of production capacities for the new generation truck seats and production optimization measures. A total of EUR 2.8 million were invested in the Automotive division, mainly in the buildup of center console production capacities to fill orders received in 2011.
Regional differences in revenue development
Looking at Grammer Group’s markets worldwide, Europe – with a 12.5 % revenue improvement to EUR 194.3 million (01-03 11: 172.7) – played a major role in the quarter under review. The proportion of overall sales represented by Europe thus rose to 68.0 % (01-03 11: 65.7). In the Americas region, as well as Far East/Others, revenues remained stable at a high level. Sales in Americas region were up 1.6 % to EUR 56.2 million (01-03 11: 55.3). Despite continued high demand in the US, the regional market was up only slightly as a result of strong contraction in Brazil. Growth was also a marginal 1.0 % in the Far East/Others region, with total revenue of EUR 35.3 million (01-03 11: 34.9). Seating Systems drives revenue growth
The greatest contributor to growth within Grammer Group in the reporting period was the Seating Systems division. On the back of surging demand in Europe and the US, the division generated revenue of EUR 121.0 million (01-03 11: 98.7) in the first quarter of 2012 – an increase of 22.6 %. One-off costs for the start of production of the new generation truck seats had a slight negative impact on EBIT in the division, which fell from EUR 7.9 million to EUR 7.1 million. Results were also burdened by weak performance in Brazil, which was not fully compensated by the other markets. EBIT margin in the first quarter of 2012 was 5.8 % and therefore below the very high level of the previous year (01-03 11: 8.0) due to the special influences described above. Automotive division continues to thrive
Revenue in the Automotive division reached the high level seen last year, falling off slightly to EUR 169.9 million in the first quarter of 2012 (01-03: 171.7) due to lower project related sales. Operating profit of EUR 7.6 million (01-03 11: 7.9) and the EBIT margin of 4.5 % (01-03 11: 4.6) also remained at the same high level seen in the prior-year quarter. 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. Download Press Release as pdf

GRAMMER achieves record results in 2011

Thu, 29 Mar 2012 00:00:00 +0200

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. Download Press Release as PDF

Record results for Grammer Group in 2011

Wed, 22 Feb 2012 07:40:00 +0100

Ad hoc notification in accordance with Sec. 15 of the German Securities Trading Act (WpHG)
GRAMMER AG (WKN 589540, ISIN DE0005895403)

Record results for Grammer Group in 2011
Dividend payment to resume
Group revenue grows by 18 percent to Euro 1,093 million
Consolidated EBIT increases by 50 percent to Euro 49 million

Amberg, February 22, 2012 – Today, Grammer AG, automotive supplier and leading manufacturer of seating systems for commercial vehicles, published its preliminary financial figures for fiscal year 2011. In the reporting year, Grammer’s revenue grew by 18 percent to Euro 1,093 million (2010: 929.7), a record in the 50-year history of the company. During 2011, Grammer benefitted from the dynamic growth of agricultural machinery and truck markets worldwide, as well as strong export performance by the German automotive manufactures. In addition to persistently high demand, Grammer’s double-digit revenue growth was also a result of numerous new product launches. Preliminary figures for consolidated earnings before interest and taxes (EBIT) increased to Euro 49 million (2010: 32.9), which is also a new record for the company. Compared to fiscal year 2010, this represents a 50 percent rise despite sometimes intense volatility in commodity and currency markets in 2011. The EBIT margin for full-year 2011 is estimated at 4.5 percent (2010: 3.5). In addition to the strong operative performance, cash flow showed a positive development as well, resulting in a reduction of net financial debt by more than 20 million to Euro 92 million at December 31, 2011.

For the first time since 2008, the Grammer AG Executive Board will again ensure that shareholders participate in the success of the company by paying a dividend. The amount of the dividend proposal will be decided in March.

The company’s Automotive division profited from new production starts, as well as thriving global demand for premium vehicles from Germany. Revenue in this division for 2011 as a whole totalled Euro 680 million (2010: 610.2), topping Grammer’s already strong revenue performance in 2010 by a further 11 percent.

The Seating Systems division also saw a considerable 28 percent increase in revenue during the reporting year to Euro 438 million (2010: 341.9). This increase of more than Euro 95 million was attributable in large part to persistently high demand in the offroad segment in all regions as well as improving demand for trucks.

Chief Financial Officer Alois Ponnath will leave Grammer AG at the end of May 2012. Alois Ponnath was a member of the company for more than 20 years, the final eleven years of which he served as Chief Financial Officer (CFO). The Supervisory Board and Mr. Ponnath have jointly come to the decision not to renew the Executive Board contract set to expire on October 31, 2012. Instead, it will be terminated at the end of May 2012. Mr. Ponnath will resign from the Executive Board after the ordinary annual general meeting on May 23, 2012. The departure of Mr. Ponnath after his long-standing service is in mutual amicable agreement with the Supervisory Board. The Supervisory Board would like to thank Mr. Ponnath for his many years of dedication to Grammer AG. No decisions have yet been made with respect to Mr. Ponnath’s successor.

Depending on the global economic development, Grammer plans to continue its growth trajectory with further improvements of revenue and earnings in 2012. A comprehensive outlook and the complete 2011 financial statements will be published by Grammer AG on March 29, 2012.

GRAMMER AG
The Executive Board

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Superior seating systems for all agricultural machinery

Tue, 13 Dec 2011 09:03:00 +0100

Amberg / December 13, 2011 — Since 1997, the agricultural technical editors at dlv – Deutscher Landwirtschaftsverlag – have chosen a winner for the biennial “Machine of the Year” award, which recognizes the best innovations in agricultural machinery as part of the Agritechnica trade fair. At this year’s expo in Hannover of all the latest technologies on offer for the agricultural industry, winners for the award were chosen in a total of twelve categories. Nine of the twelve particularly useful, award-winning innovations are self-propelled machines – all of which are equipped with driver seats from Grammer as standard.

For more than 50 years, Grammer has been working to continually improve ergonomic seating, thus making a substantial contribution to the health of agricultural machine operators. With its extraordinarily broad product range, the Grammer group covers every type of machine – from tractors to harvesters – giving it an excellent positioning within the market. Equally comprehensive is the spectrum of seats installed in the award-winning machines: It reaches from mechanical suspension seats to comfort seats featuring the Dynamic Damping System (DDS) and integrated multi-functional armrests.

First class seating comfort for heavy duty tractors
In the “large tractor” category, for instance, the “Claas Axion 900” took the award for the “Machine of the Year”. The seating comfort in this heavy duty tractor is provided by a Grammer MSG 95AL/741 seat, with its innovative low-frequency suspension and automatic weight adjustment – which prevent sub-optimal seat settings. This same seat is also installed in the winning tractor under the “premium tractor” category, the “Massey Ferguson 7600”. In this case, the “DDS” model is offered – with low-frequency pneumatic suspension and the advanced new “Dynamic Damping System”. When it comes to vertical suspension comfort, the DDS sets new standards. To complete the comfort of the seat, it features a multi-functional Grammer EiA Electronics armrest.

No more aching backs
In the category “upper mid-range tractor”, the award for the “Machine of the Year” went to the “Fendt Vario 700”, which can be ordered with one of several Grammer seats – including the MSG 97GL/731 (with low-frequency suspension) and the MSG 97EL/741 DDS (with DDS, active electronic weight adjustment and active seat climate control). The latter feature ensures that damp, sweaty seats are a thing of the past, even when operating under high temperatures. As many as eight different Grammer seat models are available for the winner in the “lower mid-range tractor”: the “John Deere 6R”. Drivers can choose from back-friendly seats like the MSG 85/731 (with mechanical suspension) or the MSG 95AL/741 DDS (with pneumatic suspension featuring DDS and automatic weight adjustment). In the “compact tractor” category, the dlv technical editors selected the “Deutz-Fahr Agrofarm TTV” as the winner. This compact tractors comes equipped with the MSG 95A/721, featuring pneumatic suspension and automatic weight adjustment. The winner in the “combine harvester” category was the “New Holland CR”, which offers the necessary level of driver comfort with the MSG 95G/732, and its pneumatic suspension and multi-functional Grammer EiA Electronics armrest.

Three winners – one seat
Three more winners of the Machine of the Year 2012 all share the same source of seating comfort – namely, the Grammer MSG 95A/722, with pneumatic suspension and automatic weight adjustment. This is the seat chosen by the manufacturers of: the “Claas Jaguar” (with NIR sensor system) – winner of the “forage harvester” category, the “Grimme Varitron 470” – “Machine of the Year” among “root crops harvesters” and, finally, the “Damman TSD-System”, which won in the category “crop management”. With its innovative and high-end driver seats, Grammer AG offers superior seating comfort for all vehicles. Download press release as pdf

Grammer to supply seats for Mercedes-Benz flagship truck

Wed, 07 Dec 2011 10:43:00 +0100

State-of-the-art suspended seats by Grammer AG a standard feature in the new generation of Actros trucks from Mercedes-Benz

Another milestone in the Grammer growth strategy for commercial vehicle business

Amberg / December 7, 2011 – Automotive supplier and seating systems manufacturer, Grammer AG, is supplying the new generation of Actros premium trucks from Mercedes-Benz with suspended seats. The upgraded series of the established luxury truck model has undergone a complete overhaul and been in production at the Mercedes-Benz plant in Wörth / Germany since the end of September 2011. All of the Actros cabs come standard with the newly developed MSG 115 suspended seats from Grammer. This project marks an important milestone for the Grammer growth strategy in the commercial vehicle segment, and substantially strengthens the company’s market position in Europe.

Ergonomically optimized seating systems from Grammer set new standards when it comes to individual adjustability, safety and comfort. The MSG 115 optimally absorbs horizontal vibrations and shocks through its fore/aft isolator while the nine-step adjustable shock absorber affords additional suspension comfort. The interactive system comprising headrest, integrated three-point safety belt and belt height adjustment round out the safety features of the MSG 115.

International collaboration within Grammer Group
The metal components for the MSG 115 suspended seats are manufactured at the company’s plant in Haselmuehl / Germany. The seat covers and armrests are produced at Grammer Group’s locations in southern Europe. Final assembly is then completed at the plant in Tachov / Czech Republic.

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. In the Automotive division, we supply headrests, armrests, center console systems and integrated child safety seats to premium automakers and automotive system suppliers.

Our Seating Systems division comprises the truck and offroad seat segments as well as train and bus seating. Grammer is represented in 18 countries worldwide with a workforce of approx. 8,500 employees across its 24 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. Download press release as pdf

Grammer AG: Growth trend continues

Wed, 09 Nov 2011 07:00:00 +0100

Grammer AG: Growth trend continues
-Group revenue EUR 810.4 million in the first nine months
-Group EBIT increases in the first nine months to EUR 36.0 million

Amberg, November 09, 2011 – With positive results for the third quarter of 2011, Grammer AG continues its growth trend this year. The automotive supplier and manufacturer of seating systems for commercial vehicles saw revenue in the first nine months increase by 19.7 percent to EUR 810.4 million (2010: 677.0). Group EBIT was up 56.5 percent to EUR 36.0 million (2010: 23.0). The EBIT margin improved to 4.4 percent (2010: 3.4). Net profit after tax in the nine-month period was EUR 15.8 million (2010: 8.9), 77.5 percent higher than the prior-year period.
As in the preceding quarters, the positive earnings performance in the third quarter of 2011 was driven by good development in all segments of the vehicle industry worldwide. Group revenue in Q3 beat the already strong prior-year quarter by 17.4 percent at EUR 272.9 million (2010: 232.5). Group EBIT improved to EUR 10.2 million (2010: 8.1) and after tax profit in the quarter was higher than Q3 2010 at EUR 6.1 million (2010: 1.0). Despite full order books and higher revenue, the closing of the Immenstetten plant, near Amberg/Germany, along with launches of new major projects and unfavorable exchange rate developments prevented an even better third-quarter result.

Automotive division benefits from new production starts and booming export
Grammer Group's Automotive division generated 14.5 percent, or EUR 64.2 million, more revenue in the first nine months of 2011 than in the same period last year, at EUR 508.1 million (2010: 443.9). In the third quarter, revenue continued to increase, even given the strength of the comparable period in 2010. Total revenue in the third quarter of 2011 reached EUR 167.1 million (2010: 147.7), an increase of 13.1 percent. Responsible for the pleasing revenue development was the good performance of automotive markets in Europe and the US, which led to strong sales especially for upper mid-size and premium vehicles. Moreover, the Automotive division was a beneficiary of the ongoing boom in export markets.
Operating profit improved to EUR 18.9 million in the nine-month period (2010: 15.0). In the third quarter, operating profit declined slightly to EUR 3.9 million (2010: 4.9), due to the plant shutdown in Immenstetten, near Amberg/Germany, production ramp up’s and unfavorable exchange rate developments – especially in August and September.

Strong growth solidified in the Seating Systems division
In the third quarter of 2011, the positive trend enjoyed by the Seating Systems division over the preceding quarters continued in impressive fashion. During the January to September 2011 period, segment revenue improved 29.4 percent to EUR 322.4 million (2010: 249.1). Compared to the third quarter of 2010, Grammer achieved revenue growth of 25.1 percent to EUR 112.0 million (2010: 89.5). In addition to the increase in revenue, the cost and capacity rationalization offensive in the offroad segment completed in 2010 is now serving to support earnings, so that operating profit in the nine month period rose to EUR 24.2 million, compared to EUR 12.0 million in the comparable period. The growth in earnings in the third quarter of 2011 was also impressive, reaching a total of EUR 7.7 million (2010: 5.2) despite the launch of major projects.
Strong growth in demand for offroad vehicles in Europe, Overseas and Asia and stable sales in the Brazilian truck market were major contributors for this development. The strong improvement over the prior-year period, especially given the strength of Q3 2010, can be seen as a very positive signal. Moreover, the acquisition of specialist for electronic components, EiA Electronics, has contributed to revenue and earnings since August.

Group financing restructured
During the quarter under review, the company re-aligned its financing structure. The restructuring of group financing has decisively improved the balance sheet structure and significantly aligned the maturities of liabilities. The transaction included the early repayment of the previous syndicated loan agreement totaling EUR 110 million that was set to expire originally in August 2013. The syndicated loan was replaced with bilateral working credit facilities. At the same time, a new debenture bond in the amount of EUR 60 million was placed successfully and a tranche of the existing debenture bond entered early into prolongation.
GRAMMER Group’s equity on September 30, 2011 was considerably higher than the 2010 level at EUR 202.5 million (09/30/10: 164.5), as a result of positive business performance and successful capital increase in April. The equity ratio as of September 30, 2011 rose to 33 percent (09/30/10: 29). Net financial liabilities on September 30, 2011 totaled EUR 115.1 million, 10.0 percent lower year-over-year. Accordingly, the net gearing was 21 percent lower at 57 percent.

Comprehensive investment with a focus on Seating Systems
Investments in property, plant and equipment during the first nine months of 2011 were up year-over-year to EUR 24.6 million (2010: 21.5). From January to September, capital was invested primarily in the Seating Systems division for setup of suspended seat production. Investment in the division totaled EUR 15.7 million (2010: 7.7). In the Automotive division, investment amounted to EUR 8.6 million (2010: 13.7) from January to September 2011.

Positive order situation necessitates more employees
On September 30, 2011, there were a total of 8,644 people employed within Grammer Group. This equates to a 9.4-percent increase year-over-year. The number of people employed in the Automotive division increased slightly from 5,021 last year to 5,128. As of September 30, 2011, the Seating Systems division employed a total of 3,334 people (09/30/10: 2,701). Sales growth and strong orders in both divisions necessitated increases in personnel numbers, especially at production plants outside of Germany.

Outlook for full-year 2011
For full-year 2011, the Grammer AG Executive Board is anticipating revenue growth of more than 10 percent to more than EUR 1 billion and an EBIT margin of roughly 4.4 percent.
Still, developments in commodity and foreign exchange markets, as well as the current order situation characterized by short lead times and volatility represent serious risk factors, which bear close monitoring to allow rapid reaction in the event of any changes. Company ProfileGrammer 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. In the Automotive division, we supply headrests, armrests, center console systems and integrated child safety seats to premium automakers and automotive system suppliers. Our Seating Systems division comprises the truck and offroad seat segments as well as train and bus seating. Grammer is represented in 18 countries worldwide with a workforce of approx. 8,600 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. Download press release as pdf

Grammer AG restructures the group's financing

Mon, 22 Aug 2011 18:47:00 +0200

Ad hoc announcement pursuant to section 15 WpHG

GRAMMER AG (WKN 589540, ISIN DE0005895403)

Amberg, 22 August 2011 – Today, Grammer AG, leader in automotive interiors and seating systems, has issued a debenture bond in the amount of EUR 55 million. The volume is distributed across three tranches with maturities of three, five and seven years. Simultaneously, a EUR 9.5 million tranche from an existing promissory note loan entered early into prolongation. Commerzbank AG and Landesbank Baden-Württemberg AG acted as arrangers for the successful transaction.

With this transaction, and a new global credit facility amounting to EUR 78.5 million until 2014, Grammer AG is taking a proactive approach to restructuring of the group’s existing financing. The transaction also replaces, already in September 2011, the current syndicated loan agreement totaling EUR 110 million that was set to expire in August 2013.

The conditions of the new loan represent a significant improvement over the existing syndicated loan agreement. Restructuring of the group’s financing serves to considerably align the maturities of its liabilities. At the same time, Grammer AG was able to improve the terms and conditions of financing in its favor, while expanding the creditor base. The new financing structure thus provides Grammer AG with the necessary flexibility for further organic and inorganic growth.

GRAMMER AG The Executive Board Download ad hoc as pdf

Grammer AG: Revenue growth in the first half exceeds 20 percent

Wed, 10 Aug 2011 07:25:00 +0200

First-half revenue increased to EUR 537.5 million
Group EBIT higher in the first half-year at EUR 25.8 million
Acquisition of electronic specialist EiA Electronics N.V.

Amberg, August 10, 2011 – Grammer AG, automotive supplier and manufacturer of seating systems, released its interim financial report today for the first six months of 2011. In the first half of the year, the Group revenues increased to EUR 537.5 million (2010: 444.5). This equates to a 20.9 percent rise year-over-year. Consolidated earnings before interest and taxes (EBIT) grew by 72.0 percent in the first half-year to EUR 25.8 million (2010: 15.0). Accordingly, the EBIT margin was also higher at 4.8 percent (2010: 3.4). Primary drivers for the rise in operating profit were positive revenue development and the improved cost structure following measures implemented in 2010.
In the second quarter, Group revenue beat out the prior-year quarter by 13.7 percent at EUR 274.5 million (2010: 241.5). Group EBIT improved to EUR 13.7 million (2010: 11.4), resulting in an operating margin of 5.0 percent (2010: 4.7).

Growing demand in all markets
Grammer increased sales in all markets, but the company was particularly strong in Europe and the Overseas region. Revenue in Europe rose 21.9 percent year-over-year in the first half to EUR 354.5 million (2010: 290.7). In the Overseas region, revenue was up 20.7 percent, rising from EUR 90.4 million in 2010 to EUR 109.1 million. In the Far East/Other region, on the other hand, growth momentum slowed from the preceding quarters, though revenue was 16.6 percent higher at EUR 73.9 million (2010: 63.4).

Automotive division continues growth
Rising numbers of new premium car sales worldwide, the continued boom in export markets and new product launches helped Grammer’s Automotive division to an increase in revenue over last year. Automotive revenue totaled EUR 341.0 million in the fist half of 2011 (2010: 295.9), a rise of 15.2 percent. Operating profit improved to EUR 14.9 million in the January to June period (2010: 10.2). The operating margin in the same period was also higher at 4.4 percent (2010: 3.4) due to the positive revenue development and improved cost situation.
Revenue in the second quarter totaled EUR 169.3 million (2010: 159.5) with EBIT of EUR 7.0 million (2010: 6.5). The EBIT margin in Q2 was 4.2 percent (2010: 4.1).

Seating Systems sees strong growth continue in Q2
In the Seating Systems division, Grammer profited from the sharp rise in demand for offroad vehicles in Europe, Overseas and Asia, setting forth the positive first-quarter trend. In the first half, revenue in Seating Systems improved EUR 50.8 million to reach EUR 210.4 million (2010: 159.6). This resulted in a significant EBIT increase for the Group in this division to EUR 16.4 million (2010: 6.7). Accordingly, the EBIT margin in the first half-year was also higher at 7.8 percent (2010: 4.2).
In the second quarter alone, revenue totaled EUR 111.7 million (2010: 87.9). EBIT in Q2 was EUR 8.5 million (2010: 5.8), with the operating margin of 7.6 percent (2010: 6.6).

Balance sheet and financial situation remain solid
On June 30, 2011, the equity of Grammer AG totaled EUR 197.7 million (Dec. 31, 2010: 173.1). The equity ratio at the reporting date was 33 percent. Net financial liabilities fell to EUR 96.9 million (Dec. 31, 2010: 113.8) as of June 30, 2011. These figures reflect the improved financing situation and equity position as a result of positive earnings and capital increase in April of this year.

Grammer acquires electronics specialist
On July 26, 2011, Grammer AG acquired 100 percent of equity in Belgian electronics specialist EiA Electronics N.V., Aartselaar, Belgium. EiA Electronics specializes in development, integration and distribution of electronic components for offroad commercial vehicles. With the acquisition, GRAMMER expands its technological competence in the area of electronics while systematically increasing its value chain coverage. Grammer paid EUR 10.5 million for the acquisition of EiA Electronics N.V., financed by proceeds from the capital increase by Grammer AG.

Comprehensive investment
Fixed assets investments in the first half of 2011 were higher year-over-year at EUR 16.9 million (2010: 15.5). From January to June, capital was invested primarily in the Seating Systems division for setup of production for suspended seats. Investment in this division totaled EUR 10.5 million (2010: 5.4). In the Automotive division, first-half investment amounted to EUR 6.1 million (2010: 10.1).

Headcount increases in first half
On June 30, 2011, there were 8,369 people employed within Grammer Group. This equates to a moderate increase of 8.0 percent compared to June 30, 2010. The number of people employed in the Automotive division increased from 4,934 last year to 5,115. The accelerating economy and new production starts have led to increased staffing requirements at the company’s production sites outside of Germany. As of June 30, 2011, the Seating Systems division employed a total of 3,075 people (June 30, 2011: 2,635). In this division as well, higher sales necessitated increases in personnel numbers.

Outlook for full-year 2011
For full-year 2011, the Grammer AG Executive Board is anticipating revenue growth of 10 percent to just over EUR 1 billion and an EBIT yield of roughly 4.4 percent.
The risks from rising commodity prices, exchange rates and global economic development still exist and have not changed significantly from our previous assessment. Presently, the Automotive and Seating Systems markets remain robust, but the impacts from a potential economic slow-down have to be monitored very closely in order to react as fast as possible.

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. In the Automotive division, we supply headrests, armrests, center console systems and integrated child safety seats to premium automakers and automotive system suppliers. Our Seating Systems division comprises the truck and offroad seat segments as well as train and bus seating. 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.

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Grammer acquires specialist in electronic control elements

Wed, 27 Jul 2011 08:08:00 +0200

Transaction strengthens technological competence
Reinforcement of leadership in seating systems innovation

Amberg, July 27, 2011 - Grammer AG, leading supplier of automotive interiors and seating systems, has acquired 100% of equity in Belgian electronics specialist EiA Electronics N.V., Aartselaar, Belgium. With the purchase, Grammer is expanding its technological competence in the area of electronics. EiA Electronics specializes in development, integration and distribution of electronic components, with a focus on multi-functional armrests for commercial vehicles. The company’s product range includes displays, consoles, controllers, communication modules and sensors. Through integration of high-tech electronics into its seating product portfolio, Grammer continues to expand its value chain and enhance the quality of its development of driver seats for commercial vehicles.

“With the acquisition of EiA Electronics, we are expanding our technological basis,” says Hartmut Müller, CEO of Grammer AG. “This is targeted investment in our innovation leadership. Through the combination of electronic and ergonomic components, a leading seating supplier will be in a position for the first time to offer its customers driver seats with integrated control elements as a complete system.” The acquisition of EiA Electronics is a further part of Grammer’s declared strategy of expansion along the value chain. This makes sense given that agricultural and construction machinery customers are already using EiA technologies as separate components with selected Grammer products. Over the coming months, Grammer plans to integrate EiA Electronics features into existing products. “Being part of an international group like Grammer gives us the opportunity to considerably expand our customer base,” says Michel Nédée, Managing Director of EiA Electronics. “Future cooperation in research and development will also allow us to contribute our expertise in other product groups.” EiA Electronics has roughly 50 employees and generated revenue of approximately EUR 20 million in 2010. The company will remain as a brand within Grammer Group. Grammer paid EUR 10.5 million for the acquisition of EiA Electronics, financed by proceeds from the capital increase by Grammer AG in April of this year.
EiA Electronics
EiA Electronics NV, based in Aartselaar, Belgium, is partner for the development and supply of customized solutions for off-highway vehicles. This high tech electronics company provides displays, controllers, consoles, handles, communication Modules and intelligent sensors already for more than 20 years now. An experienced team of specialists services OEM-customers all over the world.
Grammer AG
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.

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Grammer AG has aquired EiA Electronics N.V.,

Tue, 26 Jul 2011 18:59:00 +0200

Ad hoc announcement pursuant to section 15 WpHG
GRAMMER AG (WKN 589540, ISIN DE0005895403)

Amberg, July 26, 2011 - Grammer AG, leading supplier of automotive interiors and seating systems, has aquired 100% of equity in Belgian electronics specialist EiA Electronics N.V., based in Aartselaar, Belgium, from VADO (van doorne’s) Financieringsmaatschappij N.V. and DACO N.V., the previous owners. With the purchase, Grammer is expanding its technological competence in the area of electronics. EiA Electronics specializes in development, integration and distribution of electronic components for commercial vehicles.

The acquisition of EiA Electronics is a further step of Grammer Group’s declared medium-term strategy of expansion along the value chain.

EiA Electronics has roughly 50 employees and generated revenue of approximately EUR 20 million in 2010. The company will remain as a brand within Grammer Group. Grammer paid EUR 10.5 million for the acquisition of EiA Electronics, financed by proceeds from the capital increase by Grammer AG in April of this year.

GRAMMER AG
The Executive Board

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