Amberg, Germany — Automotive seating company, Grammer said it is likely to miss its expected order intake in its automotive division this year due to the 'surprising non-commissioning of a major follow-up order,' the firm said in a statement.
This, the firm said could have been worth EUR 80 m in 2019-2020.
Despite new orders from other sources, these cannot compensate for the loss of this major order, the firm said and it will be adjusting the amount it spends on development, sales and project management.
It expects its costs to be relatively EUR 10m higher in the automotive sector, because of the lost orders and these have been accounted for in the firms third quarter results, Grammer added.
Overall, return on earnings before interest and taxation will be between 5% and 4%, the firm said, adding that its medium-term forecast is unchanged.