DGAP-News

Grammer AG with substantial revenue growth in the third quarter - Seite 2

generally positive conditions in the automotive sector. However, as
expected, these strong top-line gains did not yet feed through to operating
margins due to the ramp-up costs customary in the automotive industry for
new projects. The relocation and optimization activities at individual
facilities, which continued in the course of the year and form key elements
of Grammer's growth strategy, also left traces on operating profit.
Accordingly, EBIT in the Automotive Division came to EUR 17.5 million
(2014: 21.4), translating into an EBIT margin for the division of 2.4
percent (2014: 3.3).

Division revenue reached EUR 246.0 million in the third quarter (2014:
214.2), accompanied by EBIT of EUR 3.1 million (2014: 6.3).

Seating Systems still impacted by weak markets
Revenues in the Seating Systems Division came to EUR 343.4 million in the
first nine months of 2015 and were thus 6.9 percent down on the previous
year (2014: 369.0). Business in this Division continued to be impacted by
the persistent market weakness in key regions. In particular, global sales
of agricultural machinery, the Brazilian truck market and the Chinese
commercial vehicle market experienced drastic declines. The sharp reduction
in vehicle production in some cases compared with the previous year
resulted in correspondingly lower orders for Grammer seats, particularly in
the high-end segment, which is characterized by higher margins. At EUR 19.5
million, segment EBIT thus fell short of the previous year (2014: 30.0).
The EBIT margin came to 5.7 percent (2014: 8.1).

Revenues in the Seating Systems Division equaled EUR 110.3 million in the
third quarter of 2015 (2014: 116.0). At EUR 3.5 million (2014: 8.2), EBIT
was influences by the aforementioned factors as well as additionally
planned capacity adjustment expenses in the core regions, thus matching the
business performance forecasts for the second half of the year.

Capital spending adjusted in the light of market developments
As of September 30, 2015, the Grammer Group's capital spending came to EUR
25.0 million, i.e. EUR 7.2 million or 22 percent down on the previous year
(2014: 32.2). In the Automotive Division, capital spending totaled EUR 17.4
million and was mainly related to the expansion of production capacity
ahead of planned product launches. At EUR 6.3 million, capital spending in
the Seating Systems Division was adjusted in the light of market
contraction and was lower than in the previous year.

Equity ratio and gearing slightly higher compared with the previous year