-More than 5 percent increase in Group revenue to approx. EUR 1.79 billion
-Substantial rise in operating EBIT to approx. EUR 80 million
-Operating EBIT margin of 4.5 percent well up on the previous year
Amberg, February 20, 2018 – Automotive supplier Grammer AG has today released its preliminary figures for fiscal year 2017. With Group revenues of approx. EUR 1.79 billion, the international supplier of interior components for passenger cars and commercial vehicle seats achieved a 5 percent increase over the previous year (2016: 1.69). This marks the seventh year in a row that the Grammer Group has posted a record revenue.
Both segments contributed to this operational record last year. With its global footprint, the Commercial Vehicles Division benefited from continued growth in demand for trucks, construction machinery and materials handling vehicles together with an appreciable recovery in demand in the global market for agricultural machinery. Revenue in the Commercial Vehicles Division climbed by a substantial 14 percent to approx. EUR 0.54 billion (2016: EUR 474 million). After the strong growth rates achieved in the previous years, the Automotive Division posted a slight increase of around 2 percent to approx. EUR 1.29 billion (2016: EUR 1,271 million) as expected and additionally strengthened its market position in China and North America in particular last year.
With a substantial increase in operating earnings before interest and taxes (operating EBIT), the Grammer AG continued to impressively implement its strategy for improving profitability in 2017 despite more challenging underlying conditions. Operating EBIT rose by more than 17 percent to approx. EUR 80 million, thus exceeding the previous year substantially (2016: 68.1). At 4.5 percent, the operating EBIT margin was likewise well up on the previous year (2016: 4.0), also exceeding the full-year guidance that had been announced in October 2017.
The increase in revenue and the improved operating profitability achieved last year testify impressively to the success of the strategy aimed at securing profitability, sustainable and global growth.
Earnings before interest and taxes (EBIT) came to approx. EUR 65 million (2016: 73.0). As had been reported on several occasions during the previous year, it was influenced by high exceptional costs as well as currency effects.
Given the systematic continuation and implementation of the measures adopted as well as the sustained recovery in important core markets, the Grammer Group expects to be able to achieve a further increase in revenue and operating profitability in the current year. The strong position held by Chinese partner Ningbo Jifeng has stabilized Grammer AG’s shareholder structure on a sustained basis, meaning that looking forward any hostile attempt to exert influence or to gain control can be almost completely ruled out. That said, it is not yet possible to completely exclude the prospect of Grammer AG’s shareholder structure leaving traces on earnings or new contract awards.
Grammer AG will be publishing its full annual financial statements and its annual report for 2017 on March 21, 2018.
Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspension driver and passenger seats for onroad and offroad vehicles.
In the Automotive Division, we supply headrests, armrests, center console systems and high-quality interior components and operating systems to premium automakers and automotive system suppliers. The Commercial Vehicle Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, forklifts) as well as train and bus seats. With over 12,000 employees, Grammer operates in 19 countries around the world.
Grammer shares are listed in the SDAX and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.