Amberg, Germany -- Grammer reported sales of EUR 1.43bn ($1.58bn) in 2015 - up 5% on 2014, according to the firm’s latest financial statement.
The figure represented its fifth consecutive year of sales records, it said.
Grammer’s automotive segment revenues were over EUR 1bn – almost an 11% increase on 2014, the company said. However, sales figures for the group’s seating systems “continued weakening”, it added.
“Both the new market slump in Brazil, the marked slowdown in the Chinese commercial vehicle market, as well as the decline in the agricultural sector weighed on the business,” the report said.
In line with the company’s expectations, revenue in the seating systems division dropped by around 5% to EUR 455m compared to EUR 479m in 2014.
The group’s 2015 earnings before interest and taxes (EBIT) was reported at EUR 42.6m - slightly higher than the adjusted summer forecast, the firm added.
Grammer ceo Hartmut Muller said the firm had “further expanded its global position in a partially very challenging and volatile market environment and implemented a large number of expansion, optimisation and production projects.
“We also expanded with the acquisition of plastics and metal specialists Reum our product and process engineering know-how, which opens up additional growth opportunities,” Muller added.
Q4 sales in automotive were EUR 265m compared to EUR 270m in Q4 2014.
Seating Systems sales in Q4 were EUR 115m, a slight increase on Q4 2014’s EUR 110m.
Overall revenues for Q4 were EUR 370m, EUR 2m down on Q4 2014. Consolidated EBIT in Q4, 2015 was EUR 13ms and, as expected, down on Q4 2014 (EUR 13.9m).
Further growth with higher profitability is expected in 2016, the firm said. The year will bring “persistently volatile and challenging market conditions, especially in the relevant commercial vehicle markets.”
“Nevertheless Grammer is confident that it can successfully address these challenges through the global presence and further improve processes."
The seating systems division expects a further weakening in the core markets and a more restrained sales trend over the previous year but there will be “noticeable growth” in the automotive segment, the firm concluded.
Currency conversion 23 Feb 2016: XE.com