Amberg, Germany — Grammer, which makes interior equipment for passenger cars and commercial vehicle seat systems saw, consolidated sales rise by 19.8% to EUR 1.27bn in the first nine months of 2016.
In the equivalent 2015 period sale were EUR 1.06bn. Grammer said this is mainly due to the further strong growth in the console business as well as to the successful integration of the former REUM Group in the Automotive segment.
However, it is not all plain sailing. Grammer warns: “In the second Seating Systems segment, market conditions are particularly challenging, in Brazil, China and the US.” Grammer added that it “was able to generate higher sales in this segment in the first nine months compared to the previous year.”
Earnings before interest and tax of the Grammer Group almost doubled to EUR 47.6m in the first nine months of 2016. In the 2015 period it EBIT was EUR 26.7 m. This was due to cost and process optimization, the company said.
In the third quarter, consolidated sales rose to EUR 404.7m compared with EUR 345.8m in the 2015 period. “The usual seasonal effects were off-set by growth in the automotive segment,” the company added. Operating EBIT improved to EUR 11.8m in the quarter compared with EUR 8.7m in the 2015 quarter.
Sales in the Automotive segment increased by almost 30 % in the first nine months of 2016, while significantly improving profitability, the firm said.
Sales were EUR 941.1m up around 30 %. This was due to further series start-ups in all regions, development of our customers in the premium segment and the first-time inclusion of the former REUM Group. EBIT in the Automotive segment rose by 62.3 % to EUR 28.4m (previous year: EUR 17.5m) despite negative exchange rate effects in the first nine months. The segment's EBIT margin was 3.0 %, Grammer said.
The Seating Systems segment recorded a 5 % increase in sales in the first nine months to EUR 360.6m. Poor performance in Brazil as well as the persistently low demand in the agricultural machinery sector in the US were more than compensated for by growth in Europe and Asia. Segment EBIT rose in the reporting period from EUR 19.5m to EUR 28.4m. The EBIT margin rose sharply to 7.9 % (previous year: 5.7 %), the firm said.
