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Grammer AG with new Record in 2013

AMBERG/GERMANY, March 6, 2014 - In 2013 fiscal year Grammer AG was able to once again substantially improve the previous year’s good results despite ongoing volatile market conditions. On the basis of preliminary figures for fiscal year 2013, Grammer achieved new record revenue of EUR 1.265 billion at the group level, an increase of more than EUR 130 million (2012: EUR 1.133 billion).

Total revenue was up 12 percent for fiscal year 2013, thus exceeding expectations considerably. Both divisions - Automotive and Seating Systems - contributed to this gratifying performance with strong growth rates. Revenue growth was mainly driven by China in particular as well as North and South America, the acquisition of Czech headrest specialist Nectec Automotive s.r.o. and the high number of development projects for future serial rampups.

Despite the intensive up-front efforts to systematically implement the global growth strategy, the Grammer Group’s profitability improved again in the previous business year. Preliminary consolidated operating earnings (EBIT) rose by a disproportionately strong 18 percent over the previous year to around EUR 58 million (2012: 49). At 4.6 percent, the EBIT margin within the Grammer Group was up on the previous year (2012: 4.3). In addition to the encouraging revenue performance, operating earnings were also influenced mainly by the set-up of new plants in China and the NAFTA region as well as optimization efforts initiated in Eastern Europe in particular.

Both Divisions successfully continuing on their Growth Trend
Revenue in the Automotive Division climbed by a sharp 14 percent to EUR 810 million (2012: 711), thus exceeding the previous year’s record figure again substantially. Operating earnings in the Automotive Division came to EUR 33 million, well up on the previous year (2012: 30). Influenced by high up-front project efforts, EBIT margin reached 4.1 percent, almost on par with the previous year (2012: 4.3).
At EUR 470 million (2012: 439) and almost 7 percent increase in revenue the Seating Systems Division also achieved new record levels. With an EBIT of around EUR 37 million (2012: 26), the Seating Systems Division performed very well in fiscal year 2013. Supported by an overall positive market development in all segments and regions, the EBIT margin reached 8.0 percent, well in excess of the previous year (2012: 6.0).

Growth Trend continued in the fourth Quarter of 2013
At EUR 312 million, Group revenue remained at a gratifyingly high level in the fourth quarter (Q4 2012: 282). Consolidated EBIT rose to around EUR 15 million (Q4 2012: 14) in the fourth quarter. Group EBIT margin was 4.7 percent, almost on par with the previous year’s high level (Q4 2012: 4.8).

Positive Start to the new Year - further appreciable Growth expected in 2014
Given the Grammer Group’s continued good order intake and additional short-term customer projects for automotive products in Brazil, the Executive Board of Grammer AG is confident with respect to business performance in 2014. Assuming stable economic conditions, Grammer expects an appreciable increase in revenue to over EUR 1.3 billion.
“Our Company’s exceedingly successful business performance confirms our operating and strategic orientation. We will further intensify the up-front efforts for optimization and growth projects in all regions again this year. Looking forward, we will be continuing our strategy unabated in 2014, thus tapping the high growth potential for our Company around the world,” says Hartmut Müller, Chief Executive Officer of Grammer AG.

Grammer AG will be publishing its full annual report for 2013 on March 31, 2014.
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