Grammer AG: Higher revenue in the first half of the year despite substantial contraction of commercial vehicle markets

- 6 percent increase in Group revenue to EUR 710.2 million in the first half of the year
- Strong contraction in the Brazilian and Chinese truck markets as well as in the global agricultural machinery sector exerting strain on the Seating Systems Division.
- EBIT at EUR 24.6 million in the first half of the year
- Outlook for 2015: revenue forecast confirmed, EBIT forecast lowered due to weak market conditions

Amberg, July 30, 2015 – According to preliminary figures, the Grammer Group’s revenue continued to grow as planned over the previous year in the first half of 2015. The dynamic development of the Automotive Division caused consolidated revenue to rise by 6 percent over the previous year to EUR 710.2 million (2014: 669.6).

The Seating Systems Division, which produces suspended seats for trucks, construction and agricultural machinery, buses and trains, came under pressure from an unexpectedly significant decline in core markets in the first half of 2015, with this trend worsening in the second quarter in particular.
New registrations of heavy trucks in Brazil, an important market for Grammer, unexpectedly slumped by almost 50% over the already weak previous year. In addition, the Chinese commercial vehicle market - particularly trucks and construction machinery - slowed significantly, dropping drastically by more than 30% over the previous year in the first six months. At the same time, global sales of agricultural machinery contracted again significantly, resulting in a strong decline in demand for suspended seats for large tractors and harvesters in particular.

These simultaneous negative trends in the Seating Systems Division, which is characterized by higher margins, resulted in burdens which the continued favorable business development of the Automotive Division and the cost-cutting measures already implemented were not able to fully compensate for. This caused EBIT to drop to EUR 24.6 million in the first half of 2015 (2014: 30.9).

In response to the still difficult market situation, the absence of the market recovery which had been expected in Brazil and in the agricultural machinery sector for the second half of the year as well as the unexpected contraction in the commercial vehicle market in China, it is necessary to adjust the full-year EBIT forecast for 2015. In addition, demand for trucks in Brazil is now expected to remain under pressure over a protracted period of time, thus necessitating additional structural measures at Grammer’s local production facility. In view of these negative determinants, Grammer now expects EBIT in 2015 to drop by around EUR 15 million compared to the previous year to EUR 42 million. Thanks to the continued dynamic development of the Automotive Division, the Group confirms its revenue forecast and despite the pronounced weakness of the Seating Systems Division continues to project an appreciable increase in consolidated revenue over the previous year to more than EUR 1.4 billion.

Grammer AG will be releasing its full report on the first half of 2015 on August 5, 2015.

Company Profile
GRAMMER AG, Amberg, Germany, specializes in the development and production of components and systems for automotive interiors as well as driver and passenger seats for offroad vehicles. In the Automotive Division, we supply headrests, armrests and center console systems to premium automakers and automotive system suppliers. The Seating Systems Division comprises the truck and offroad seat segments as well as train and bus seats.

Grammer is represented in 20 countries worldwide with a workforce of over 10,700 employees across its 30 subsidiaries.

The GRAMMER share is listed in the SDAX and traded on the Frankfurt and Munich stock exchanges via the electronic trading system, Xetra, as well as in over-the-counter trading at the Stuttgart, Berlin and Hamburg stock exchanges.

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