Ad hoc announcement in accordance with Section 15 of the German Securities Trading Act (WpHG)
GRAMMER AG (WKN 589540, ISIN DE0005895403)
Preliminary figures for the first half 2015 published
EBIT after six months lower than last year due to weak demand for commercial vehicles
Operating profit for the full year adjusted due to sharp decline in commercial vehicle market. Revenue forecast for 2015 confirmed.
Amberg, July 30, 2015 – On the basis of its preliminary figures, the Grammer Group posted a substantial 6% increase in revenue over the previous year to EUR 710.2 million (2014: 669.6) despite the sharp contraction in commercial vehicle markets. Earnings before interest and taxes (EBIT) came to EUR 24.6 million, thus falling short of the previous year (30.9) due to the substantial decline in demand in profitable core markets.
In the first six months of the year, weaker market conditions in the truck and the construction machinery markets in Brazil and China in particular as well as the global agricultural machinery sector worsened again substantially. These weak conditions in core markets addressed by Grammer fed directly through to sales of suspended seats for trucks and agricultural machinery in the Seating Systems Division in the second quarter in particular. However, the continued favorable business development of the Automotive Division and the cost-cutting measures already implemented were not able to fully compensate for the continuing negative market environment as mentioned above.
As a result of the burden caused by the sharp decline in the commercial vehicle market in the first half of the year and the failure of the recovery expected at the beginning of the year to materialize in the second half, the full-year earnings forecast for 2015 has been adjusted. Moreover, additional structural adjustments are necessary for the Brazilian market to bring the local production facilities into line with what may well be a protracted weakness in demand for Brazilian trucks. Accordingly, Grammer expects EBIT in 2015 to drop by around EUR 15 million over the previous year. Despite the substantially weaker business in the Seating Systems Division, the Group continues to project an appreciable increase in revenue over the previous year to more than EUR 1.4 billion.
Grammer AG will be releasing its full report on the second quarter of 2015 on August 5, 2015.
The Executive Board