DGAP-News: GRAMMER AG - Financial Statements 2009
(firmenpresse) - Grammer AG / Final Results
31.03.2010 06:47
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Positive trend for GRAMMER in the fourth quarter of 2009
Group revenue declines to EUR 727 million
Timely reaction stabilizes EBIT
Positive trend visible in both divisions in Q4
Revenue growth and return to profitability expected in 2010
Amberg, March 31, 2010 - GRAMMER AG, a leading automotive supplier and
manufacturer of seating systems, was unable to match its record 2008
results, experiencing a roughly 28 percent decline in revenue to EUR 727.4
million (2008: 1,007.0) as a result of the financial and economic crisis
last year. Nonetheless, the Company saw a turnaround in the trend over the
course of 2009: After a very difficult nine months with a decline of 34.2
percent, demand picked up in several segments during the October to
December quarter. Thus, a stabilization of revenue and earnings had already
begun to set in by the final three months of the year. As a result of the
challenging business environment and one-off expenses for structural
adjustments, Group EBIT in 2009 was negative at EUR -23.9 million (2008:
32.0). Thanks to the success of the numerous structural measures
implemented by the Group thus far, however, adjusted EBIT (excluding
one-off expenses) fell only to EUR -8.8 million by the end of the fiscal
year, despite the massive revenue decline.
Stabilization in the Automotive division
The effects of the financial and economic crisis were most substantial in
the Automotive division during the first two quarters of 2009. Full-year
revenue was down 22.3 percent to EUR 495.5 million (2008: 637.6). But,
already by the third quarter, the Automotive segment had returned to the
profit zone with EBIT of EUR 0.8 million (2008: -2.5); the positive result
in the fourth quarter of EUR 4.4 million also contributed to holding 2009
full-year EBIT in this division to EUR -3.9 million (2008: 3.1). Important
factors in the turnaround were a stabilizing revenue base and new product
launches.
Substantial decline in the Seating Systems division
The Seating Systems division was hit later by the effects of the economic
crisis and the related fall-off in demand: In 2008, the division was still
the Company's driving force, but revenues collapsed in 2009, falling 36.6
percent to EUR 247.1 million (2008: 390.0). EBIT of EUR -9.9 million lagged
well behind the EUR 31.0 million in 2008. The primary causes of the decline
included extremely difficult market conditions in the Offroad segment and
an abrupt drop in order volumes for the agricultural machinery sector at
the start of the second quarter of 2009.
Regional differences in revenue performance
Revenue in Europe declined drastically as a result of the crisis. After
generating EUR 738.4 million in 2008, GRAMMER took in only EUR 519.3
million from this region in 2009. Overseas revenue was also negatively
impacted by the strong contraction in the US, falling by 37.1 percent.
Performance in Asia improved year-over-year, reinforcing the strategic
position of the region for GRAMMER. The Far East/RoW region saw an increase
in revenues from EUR 80.7 million to EUR 89.9 million.
Major workforce reductions as a result of capacity adjustments
The declining order volumes in both divisions as a result of the financial
and economic crisis necessitated a systematic and long-term re-alignment of
employee numbers with the lower demand situation. As of December 31, 2009,
GRAMMER Group employed 7,224 people worldwide, 18.9 percent fewer than in
2008.
Targeted investment in new products and markets
Despite the substantial declines, GRAMMER Group placed a strong emphasis on
investment in the future of the Company in 2009. Although total investment
volumes were lower at EUR 32.7 million (2008: 39.9), there was a greater
focus on investment in new products and markets. The majority of
investments (71.4 percent) went to the Automotive division, where they were
used to fund new facilities for production of center consoles and the
construction of sites in Shanghai, Serbia and Schmölln. In the Seating
Systems division, new investments were made primarily in future-oriented
projects such as the new generation of truck seats. In order to accelerate
growth of the Company and build on the competitive strengths of GRAMMER, a
moderate increase in investment is planned for 2010.
Balance sheet and financial situation remain solid despite loss
Equity at the end of the year was down to EUR 151.0 million (2008: 173.0)
as a result of the loss situation. The equity ratio, however, remained at
30 percent as of December 31, 2009. Net financial liabilities increased to
EUR 106.2 million (2008: 80.2) due to financing of the loss and
expenditures for structural adjustment, but the Company has begun to reduce
the level of net financial liabilities since September 30, 2009.
New credit lines provide a boost to the Company
In mid-March 2010, a group of banks, with the participationof Germany's
KfW, issued GRAMMER a medium-term line of credit totaling EUR 110 million
with a term of three years. This represents to a 20 percent increase over
the Company's existing credit line. This agreement is a vote of confidence
by the banks in the solidity and long-term success of GRAMMER. Signing of
the new loan agreement provides a significant boost to the stability and
financial situation of the Group. The expanded credit line means that there
is now adequate financing available for future operational and strategic
growth. In addition to the loan, GRAMMER AG still has access to funding
from a long-term debenture bond in the amount of EUR 70 million.
Positive result and moderate revenue growth expected in 2010
As a result of the stabilizing market environment and numerous new
production starts, GRAMMER AG is expecting a moderate increase in revenues
in fiscal year 2010. Thanksto the effects of the capacity adjustment and
fixed cost reduction measures implemented by the Company, this year
promises slightly positive earnings and a return to the profit zone.
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.
Our Seating Systems division comprises the truck and offroad seat segments
as well as train and bus seating. In the Automotive division, we supply
headrests, armrests, center console systems and integrated child safety
seats to premium automakers and automotive system suppliers. GRAMMER is
represented in 17 countries worldwide with a workforce of approx. 7,200
employees across its 24 fully consolidated subsidiaries. GRAMMER shares arelisted 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.
Ralf Hoppe
+49 9621 66 2200
investor-relations(at)grammer.com31.03.2010 06:47 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Grammer AG
Postfach 14 54
92204 Amberg
Deutschland
Phone: +49 (0)9621 66-0
Fax: +49 (0)9621 66-1000
E-mail: investor-relations(at)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, Stuttgart, Hamburg
End of News DGAP News-Service
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