Amburg, Germany — Automotive seating-to-interiors group, Grammer, expects to make a loss in its earnings before interest and taxes of EUR 2m in the first quarter of 2020.
This compares to earnings of EUR 24m in the first quarter of 2019. Revenue in the first quarter is likely to be EUR 455m compared to EUR 534m in the previous year.
Grammer company said that the predominant cause of this loss and fall in revenue was the 'significant reductions in customer orders and the worldwide production stops of many OEMs.'
The company said closures in China in January and February, followed by European and American locations in March severely limited business.
Grammer said that the effects of coronavirus has significantly reduce demand year-over-year in its higher-margin commercial vehicle segment.
Grammer was one of the first OEM suppliers in Europe to halt production because of the coronavirus emergency in March.
The company expects to publish its Q1 numbers in full on 29 April 2020.
