Amberg, Germany -- Automotive supplier and seating-systems maker Grammer AG said 15 Feb that the company had 27.8-percent growth in revenue during fiscal 2010 to Euro 929.3 million ($1259 million) (2009: Euro 727.4 million).
The company said that these figures mean that Grammer's revenues were higher than full-year forecasts -- which had already been raised twice.
The better-than-expected results are the result of, "a surprisingly strong recovery across the entire industry," Grammer said.
Grammer group earnings (EBIT) are anticipated to be Euro 32.7 million (2009: Euro -23.9 million). This equates to an increase of Euro 56.6 million over last year's figure, and an EBIT margin of 3.5 percent for fiscal year 2010.
According to Amberg, Germany-based Grammer, the significant rise in EBIT comes from higher revenue as well as measures implemented to increase efficiency and lower costs.
In the fourth quarter, group revenue was roughly Euro 252.3 million (2009: Euro 208.9 million), brought about by strong demand in both segments. Group EBIT was roughly Euro 9.7 million, an increase of Euro 8.9 million over 2009.
Grammer's Automotive division, which makes interior parts including arm- and head-rests and consoles, benefited both from new production start-ups, and from increasing demand from abroad for premium-class vehicles, the company said.
Primary growth drivers here were the US and Chinese markets.
Revenue for 2010 as a whole was about Euro 610.2 million. In crisis year 2009, revenue in the division totalled Euro 495.5 million. That is an increase of 23.1 percent year on year. Q4 revenue rose to Euro 166.3 million (2009: 149.6).
In its Seating Systems division, which makes train and bus seats, and driver seats for trucks and other vehicles, revenue rose to Euro 342.5 million (2009: Euro 247.1 million) as a result of strong demand worldwide.
Grammer said this "substantial increase of 38.6 percent resulted from rising truck demand and recovery in the offroad vehicles market." Also the sector saw above-average growth, particularly in China and Brazil. In Q4, revenue continued to grow, reaching Euro 93.4 million (2009: Euro 63.4 million).
If a stable market environment continues, Grammer said it intends to continue pushing forward with its growth agenda in 2011. But it warned that current developments in the global commodity markets "need to be monitored very closely."