Corporate | 8 August 2012 06:55

Grammer AG ends a strong first half

Grammer AG / Key word(s): Half Year Results

08.08.2012 / 06:55

Grammer AG ends a strong first half

Revenue 1-6 2012 totals EUR 573.4 million – 6.7% higher year-over-year
EBIT down slightly due to start-up costs to EUR 23.8 million
At EUR 12.4 million, net profit increases by 29.2%

Amberg, August 08, 2012 – Following a first quarter of 2012, in which Grammer AG achieved clear revenue gains, the specialist for seating systems and automotive interiors continued to grow in the second quarter. Group revenue in the first half of 2012 rose by 6.7% on a year-over-year basis to EUR 573.4 million (01-06 11: 537.5).

Planned setup costs for the new generation of Grammer truck seats, – successfully launched in the first and second quarter – as well as the unforeseen slump hitting the Brazilian market pushed operating profit (EBIT) to EUR 23.8 million, slightly below the prior-year level (01-06 11: 25.8). Nonetheless, Grammer was able to improve net profit by 29.2% to EUR 12.4 million (01-06 11: 9.6).

In the April to June period, Group revenue rose to EUR 287.6 million (Q2 11: 274.5). This positive performance in a difficult economic environment was attributable to new production starts, persistently high demand in the offroad segment and an advantageous customer base in the Automotive division. As a result of the product launches mentioned above, second-quarter EBIT was down slightly from the prior-year period to EUR 11.7 million (Q2 11: 13.7).

As of June 30, 2012, shareholders' equity totaled EUR 219.4 million – roughly EUR 22 million more than last year (11/06/30: 197.7). The equity ratio on the reporting date remained unchanged at 33%. At the same time, Grammer successfully reduced its gearing ratio from 49% to 43% (as of June 30, 2012).

Seating Systems: Focus on new product launches
On the back of strong order volumes in the offroad segment, as well as new products launched in 2012, Grammer Group's growth continued to be fuelled largely by the Seating Systems division, which saw a revenue increase of 13.6% to EUR 239.0 million (01-06 11: 210.4), in an otherwise contracting truck market. Compared to the previous quarter, divisional revenue increased 5.7% between April and June 2012 to EUR 118.0 million (Q2 11: 111.7). Operating profit (EBIT) in the Seating Systems division was impacted by both planned start-up costs and, in particular, by the surprise market downturn in Brazil, and fell to EUR 5.7 million in the second quarter (Q2 11: 8.5). From January to June 2012, Grammer's Seating System division recorded EBIT of EUR 12.7 million (01-06 11: 16.4).

Automotive: Higher revenue despite negative market trend
The Automotive division of Grammer AG ended the first half of 2012 with a 0.9% rise in revenue to EUR 343.9 million (01-06 11: 341.0). Second-quarter revenue reached EUR 174.0 million, a 2.8% improvement over the prior-year quarter (Q2 11: 169.3). Thanks to the company's targeted positioning in the premium car segment and the strength of sales and exports by German carmakers to China and the United States, Grammer AG was thus able to compensate for weaker regional auto markets. Operating profit in the Automotive division for the second quarter of 2012 totaled EUR 7.6 million, an improvement of 7.6% year-over-year (Q2 11: 7.1). For the first half as a whole, EBIT in the Automotive division reached EUR 15.2 million (01-06 11: 14.9).

Outlook 2012
For 2012, Grammer continues to expect a positive order development on previous year's level or slightly above.

Subject to a continuing stable development of the product launches, Grammer expects a positive development of revenues and earnings in 2012. However, the economic situation in Europe and China – and especially in Brazil – has to be monitored closely, as further deteriorations in these markets could have an impact on earnings.

With a view to the coming months, Grammer looks forward to welcoming new CFO, Mr. Volker Walprecht. He will take up his position on October 01, 2012, succeeding Alois Ponnath. Walprecht has joined Grammer AG after leaving Siemens AG, where he most recently was CFO of the division Oil & Gas.

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 and center console systems 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. 9,000 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.

Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
investor-relations@grammer.com

End of Corporate News

08.08.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

Language:	English
Company:	Grammer AG
	Postfach 14 54
	92204 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:	Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart

End of News DGAP News-Service

180816  08.08.2012