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Grammer AG with substantial revenue growth in the third quarter

DGAP-News: Grammer AG / Key word(s): Quarter Results
Grammer AG with substantial revenue growth in the third quarter

04.11.2015 / 06:48

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Grammer AG with substantial revenue growth in the third quarter

Group revenue up 6 percent, rising to EUR 1.06 billion in the first nine
months

Full-year guidance for 2015 confirmed

Amberg, November 4, 2015 - Grammer AG's report on the first nine months of
2015 shows a further substantial increase of 6.3 percent in Group revenue
to EUR 1.06 billion (2014: 993.8 million). Once again, this top-line growth
was driven by the Automotive Division, which continued to grow dynamically,
whereas revenues in the Seating Systems Division remained under pressure
from the persistent weakness of key regional markets.

Grammer generated an operating profit (EBIT) of EUR 29.7 million in the
period from January through September 2015 (2014: 43.1). Throughout the
year as a whole, Group EBIT has been influenced by slower business in the
Seating Systems Division caused by the contraction of key submarkets as
well as costs for global structural optimization and expansion measures in
the Automotive Division in particular. The EBIT margin for the Group came
to 2.8 percent (2014: 4.3). Net profit for the first nine months of 2015
came to EUR 16.7 million (2014: 25.8) and was thus also down on the
previous year.

Third quarter revenue and EBIT in line with expectations
In the third quarter of 2015, the Grammer Group posted revenues of EUR
345.8 million, thus exceeding the previous year by a substantial 6.7
percent (2014: 324.2) due to the growth achieved in the Automotive
Division. EBIT came to EUR 5.1 million in the third quarter (2014: 12.2)
and therefore matched expectations for the development in the second half
of 2015. As in the year to date, the lower EBIT compared with the previous
year was due to market weakness in the Seating Systems Division, the
sustained costs of new product start-ups as well as optimization and
expansion measures. In addition, the seasonal summer shout-down days of
automotive OEMs impacted earnings in July and August in particular.

Revenue in the Automotive Division up more than 15 percent
The Automotive Division posted revenues of EUR 740.9 million in the first
nine months of 2015 (2014: 642.1). Accordingly, it continued to grow at a
strong dynamic rate of 15.4 percent over the previous year, in particular
driven by the launch of new models in all regions and the continued