DGAP-News

Grammer AG: Grammer starting 2017 with a substantial increase in revenue and higher profitability - Seite 2

Both divisions contributed to the substantial increase in revenue and profitability. In the Automotive Division, revenue rose by 6.1 percent to EUR 335.5 million (Q1 2016: 316.1), with the Americas and Asia/Pacific (APAC) reporting substantially above-average growth. Revenue in the Commercial Vehicles Division (previously known as the Seating Systems Division) grew by 9.8 percent to EUR 134.0 million (Q1 2016: 122.0). Here, the truck segment in particular also posted slight growth again in Brazil and China.

"We are pleased that 2017 continues where 2016 left off in terms of our very favorable business performance. As announced, we were particularly able to significantly boost the Grammer Group's profitability. We want to continue this successful strategy in the interests of our employees, all shareholders and our customers," said Hartmut Müller, Chief Executive Officer of Grammer AG.

Concern over influence of the Hastor family placing a strain on new orders

Several major automotive OEMs are observing with great concern the Hastor family's investment in Grammer AG and its plans to exert influence on the Company. For this reason, they have made it clear in direct talks, in consultations with political representatives and trade unions as well as in the press that they will be reviewing and reassessing their business relations with Grammer. In the Automotive Division we have noted palpable restraint on the part of our customers in the award of new contracts. Consequently, order intake for new and future projects in the Automotive Division is coming under appreciable strain from the recent developments in Grammer AG's shareholder structure, resulting in a decline in new orders for the first time since the end of the financial and economic crisis in 2010. This situation could worsen if the Hastor family manages to gain control at the upcoming Annual General Meeting and continues its activities as OEMs could decide to discontinue placing orders with the Grammer Group in the future. This would pose a substantial risk to the order situation and, hence, the Company's future viability.