Amberg, March 15, 2010 - Automotive and rail seat system supplier Grammer AG has agreed on a new medium-term working-capital facility, giving it access to Euro 110 million over three years.
This raises Amberg, Germany-based Grammer's credit by Euro 20 million or more than 20 percent compared to the existing credit facility, the group said. The deal with a group of six banks, was supported by a programme of the German KfW-bank, said a 15 March statement.
"With the higher credit volume, our banks sending a clear signal of trust in the financial solidity and future profitability of Grammer. Now our company can secure future projects and investments and we are able to fund the growth in the next years," said Grammer cfo, Alois Ponnath, in the statement.
Grammer is also still using the existing long-term debenture bond of Euro 70 million which matures in August 2013.
Grammer recently reported preliminary full year results for 2009 in which revenue fell 28 percent to Euro 750 million, from Euro 1007 million for 2008, "as a result of the economic crisis."
Its automotive interiors business reported revenue of Euro 490 million, with two consecutive quarters showing a stable trend upwards, but down from Euro 638 million for 2008. Seating Systems showed a lag before feeling the effects of the economic crisis, and a recovery is expected later, the company said. Revenue was Euro 250 million for 2009, down 36 percent from 2008.