DGAP-News: Grammer AG confirms successful growth trend in

DGAP-News: Grammer AG / Key word(s): Quarter Results Grammer AG confirms successful growth trend in the first quarter of 2014 07.05.2014 / 06:58 --------------------------------------------------------------------- Grammer AG confirms successful growth trend in the first quarter of 2014 7.3 percent increase in consolidated revenue to EUR 330.8 million Rise in operating earnings (EBIT) to EUR 14.8 million Improvement in net profit after tax for the quarter of EUR 8.5 million Amberg, May 7, 2014 - At the end of the first quarter of 2014, Grammer AG again confirms the company's successful performance. Consolidated revenue rose by 7.3 percent over the first quarter of the previous year to EUR 330.8 million (2013: 308.4) despite negative currency translation effects. The significant revenue growth was accompanied by a proportional increase in operating earnings (EBIT) to EUR 14.8 million (2013: 13.8). As expected, the EBIT margin held steady at 4.5 percent due to planned up-front efforts. After tax profit came to EUR 8.5 million in the first quarter of 2014 (2013: 8.0). Automotive: Strong growth and up-front efforts in the first quarter Revenue in the Automotive Division rose by a sharp 8.2 percent over the comparison quarter to EUR 209.6 million (2013: 193.7). Head rest business was very dynamic while revenue generated from consoles and arm rests was up only marginally on the previous year as expected due to the planned ramp-up curves. Regionally, the Automotive Division achieved substantial gains in Europe thanks to continued strong demand in the premium segment as well as market share gains. In the Americas and Far East/Others regions, Grammer Automotive recorded stable revenues due to the phase-out of existing orders and the start-up curves of new launches EBIT in the Automotive Division came to EUR 7.5 million in the first three months of the year, thus falling short of the previous year's figure as expected (2013: EUR 9.0). Accordingly, the EBIT margin came to 3.6 percent (2013: 4.7). This performance was due to the continued planned optimization of production structures in Eastern Europe, capacity expansion in all regions as well as the set-up of head rest production in Brazil. Seating Systems: Further improvement in revenues and operating margin Revenue in the Seating Systems Division also grew appreciably by 6.1 percent to EUR 126.9 million (2013: 119.6). Truck business registered an encouraging increase in revenue in Europe and China in particular and was thus able to make up for the market-induced contraction in Brazil. Against the backdrop of mixed market conditions, the offroad segment remained stable at a high level. The railway segment performed very encouragingly, recording substantial top-line growth with the delivery of seats for the new HGV and Eurostar trains. Earnings in the Seating Systems Division continued to improve despite unfavorable market development in Brazil. EBIT in the Seating Systems Division came to EUR 10.3 million in the first quarter of 2014, thus substantially exceeding the previous year (2013: 8.9). As a result, the EBIT margin widened to 8.1 percent (2013: 7.4). Capital spending focused on extensions and optimization At EUR 10.1 million, capital spending was well up on the previous year (2013: 7.2) as expected. In the Automotive Division, capital spending was mainly targeted at expansion of production capacity in all regions and measures for optimizing production structures in Eastern Europe. Equity increased The GRAMMER Group's equity rose to EUR 228.1 million (2013: 221.3), with the equity ratio coming to around 29 percent, more or less on a par with the previous year. Net debt as of March 31, 2014 was EUR 120.9 million (2013: 107.1), translating into a gearing ratio of 53 percent (2013: 48). Increased workforce due to growth and new companies As of March 31, 2014, the GRAMMER Group had a total of 10,476 employees (2013: 8,934). The number of employees was up on the same quarter of the previous year in all regions due to new product launches, further expansion of production facilities and the first-time consolidation of Group entities. Outlook confirmed Looking forward to the rest of 2014, up-front efforts and intensified measures to optimize production structures in Eastern Europe in particular will play a dominant role especially in the Automotive Division. In addition, the sustained strength of the euro against the currencies of countries relevant for Grammer will result in currency-translation effects on revenue and earnings. Overall, Grammer still considers the development for the Group to be favorable in 2014. The company still expects an appreciable increase in revenue over the previous year to more than EUR 1.3 billion, accompanied by stable operating earnings. 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 and center console systems to premium automakers and automotive system suppliers. Grammer is represented in 19 countries worldwide with a workforce of more than 10,000 employees across its 30 subsidiaries. Grammer shares are listed 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. Contact: GRAMMER AG Ralf Hoppe Phone: 0049 9621 66 2200 investor-relations@grammer.com End of Corporate News --------------------------------------------------------------------- 07.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Grammer AG Postfach 14 54 92204 Amberg Germany Phone: +49 (0)9621 66-0 Fax: +49 (0)9621 66-1000 E-mail: investor-relations@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, Hamburg, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 266853 07.05.2014