DGAP-News

Grammer AG: Higher revenue in the first half of the year despite substantial contraction of commercial vehicle markets

DGAP-News: Grammer AG / Key word(s): Preliminary Results/Half Year
Results
Grammer AG: Higher revenue in the first half of the year despite
substantial contraction of commercial vehicle markets

30.07.2015 / 20:30

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Grammer AG: Higher revenue in the first half of the year despite
substantial contraction of commercial vehicle markets

6 percent increase in Group revenue to EUR 710.2 million in the first half
of the year

Strong contraction in the Brazilian and Chinese truck markets as well as in
the global agricultural machinery sector exerting strain on the Seating
Systems Division

EBIT at EUR 24.6 million in the first half of the year

Outlook for 2015: revenue forecast confirmed, EBIT forecast lowered due to
weak market conditions

Amberg, July 30, 2015 - According to preliminary figures, the Grammer
Group's revenue continued to grow as planned over the previous year in the
first half of 2015. The dynamic development of the Automotive Division
caused consolidated revenue to rise by 6 percent over the previous year to
EUR 710.2 million (2014: 669.6).

The Seating Systems Division, which produces suspended seats for trucks,
construction and agricultural machinery, buses and trains, came under
pressure from an unexpectedly significant decline in core markets in the
first half of 2015, with this trend worsening in the second quarter in
particular.

New registrations of heavy trucks in Brazil, an important market for
Grammer, unexpectedly slumped by almost 50% over the already weak previous
year. In addition, the Chinese commercial vehicle market - particularly
trucks and construction machinery - slowed significantly, dropping
drastically by more than 30% over the previous year in the first six
months. At the same time, global sales of agricultural machinery contracted
again significantly, resulting in a strong decline in demand for suspended
seats for large tractors and harvesters in particular.

These simultaneous negative trends in the Seating Systems Division, which
is characterized by higher margins, resulted in burdens which the continued
favorable business development of the Automotive Division and the
cost-cutting measures already implemented were not able to fully compensate
for. This caused EBIT to drop to EUR 24.6 million in the first half of 2015
(2014: 30.9).

In response to the still difficult market situation, the absence of the
market recovery which had been expected in Brazil and in the agricultural