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DGAP-News: Grammer AG: Grammer with higher revenue and earnings in the first half of 2014

August 5, 2014

DGAP-News: Grammer AG / Key word(s): Half Year Results Grammer AG: Grammer with higher revenue and earnings in the first half of 2014 06.08.2014 / 06:52 --------------------------------------------------------------------- Grammer with higher revenue and earnings in the first half of 2014 Increase in revenue to EUR 669.6 million in the first half of 2014 Rise in operating profit (EBIT) to EUR 30.9 million despite heavy up-front costs for optimization and growth projects Disproportionately sharp increase in net profit after tax to EUR 18.3 million Full-year guidance confirmed Amberg, August 6, 2014 - With a 4.2 percent increase in revenue compared with the previous year, Grammer AG closed the first half of 2014 on a successful note. The leading global supplier of seating systems for commercial vehicles and automotive interiors generated total revenue of EUR 669.6 million (2013: 642.5), achieving this growth despite negative currency translation effects, which influenced revenue in the first half of the year by roughly EUR 21 million. Although operating profit was burdend as expected from extensive activities aimed at relocating, optimizing or expanding various production facilities, EBIT rose slightly to EUR 30.9 million in the first half of the year (2013: 30.1). At 4.6 percent, the EBIT margin was stable compared to previous year (2013: 4.7). "The fact that we were able to increase EBIT in the first half of the year despite these heavy up-front costs testifies to our good global set-up and the high acceptance of our products in the market. With the successful completion of the optimization and expansion projects in 2014, we are now creating the basis for more profitable and sustainable growth in the Grammer Group in the future," says Hartmut MÜller, Chief Executive Officer of Grammer AG. Grammer reported a disproportionately improvement in net profit, which rose 5.8 percent over the previous year to EUR 18.3 million (2013: 17.3). In the second quarter alone, the Grammer Group generated revenue of EUR 338.8 million (2013: 334.1), EBIT of EUR 16.1 million (2013: 16.3) and net profit of EUR 9.7 million (2013: 9.3). Five percent growth in the Automotive Division The core buisness segments headrest and console/armrest contributed equally to the encouraging growth in revenue in the Automotive Division. Overall, revenue in the Automotive Division climbed by 5.4 percent over the previous year to EUR 427.9 million (2013: 406.1). Segment EBIT was EUR 15.1 million (2013: 17.8), thus falling short of the previous year as expected. Accordingly, the EBIT margin came to 3.5 percent (2013: 4.4). The aforementioned ongoing optimization of the production structures in Eastern Europe as well as capacity expansion and product launches around the world had an impact in the first half-year as expected and will also influence operating profit throughout the rest of the year. Substantially improved earnings in the Seating Systems Division The business segments of the Seating Systems Division, in which Grammer produces seating systems for trucks and trains as well as for agricultural and construction machinery, continued to perform disparately as a result of mixed market conditions. Overall, revenue rose by a slight 2.8 percent to EUR 253.0 million (2013: 246.1). At the same time, profitably improved again very significantly. At EUR 21.8 million (2013: 18.3), segment EBIT was up almost 20 percent on the previous year, accompanied by a 1.1 percentage-point increase in the EBIT margin to 8.6 percent (2013: 7.5). Heavy investments for expansion and optimization At EUR 21.8 million, capital spending by the Grammer Group was substantially up on the previous year (2013: 15.5). In the Automotive Division, it was mainly targeted at expanding production capacity in all regions and optimizing production structures in Eastern Europe. Increased equity and equity ratio The Grammer Group's equity rose to EUR 228.6 million as of June 30, 2014 (2013: 222.2). At around 28 percent, equity ratio was up on the previous year (2013: 27). Net debt as of June 30, 2014 was EUR 122.4 million (2013: 102.1), translating into a gearing ratio of 54 percent (2013: 46). Full-year guidance for 2014 confirmed The numerous optimization and expansion measures at the plants in China, North and South America and Eastern Europe are expected to continue influencing operating profit in the Automotive Division as the year proceeds. Overall, Grammer still considers the outlook for the Group to be favorable in 2014. The company projects an appreciable increase in revenue over the previous year to more than EUR 1.3 billion. Despite planned up-front costs of around EUR 7 to 10 million in 2014 as a whole, Grammer Group expects operating profit (EBIT) to match the previous year. 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 29 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 AGRalf Hoppe Phone: 0049 9621 66 2200 investor-relations@grammer.com --------------------------------------------------------------------- 06.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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 --------------------------------------------------------------------- 280990 06.08.2014


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