GRAMMER
Eastern European presence to be intensified / New plant in Serbia / Decision soon on sale of bus seat unit
Seating systems specialist Grammer (Amberg / Germany; www.grammer.de) plans to intensify its presence in eastern Europe and the Balkans. Speaking at the annual results presentation, chief financial officer Alois Ponnath said the company´s production facilities in Bulgaria and Russia will be expanded. A new plant to manufacture head- and armrests will be built at an as yet undisclosed location in Serbia, rather than in Slovenia and Moldavia, as was still being considered in December 2006. This new facility is scheduled to start up at the end of 2007. The new production capacity in the east will include activities previously concentrated in the Czech Republic and Poland. Grammer will also take over responsibility for some products now toll manufactured.
For 2006, Grammer reported EBIT up 19% against 2005 to EUR 38.8m on total sales of EUR 881m (EUR 859m). Due to investment in the new Chinese production sites, net debt rose by almost EUR 20m to just under EUR 58m. For 2007, the company intends to increase sales and EBIT by 3-5% across all divisions.
The Automotive division, the company´s largest with a 65% share of overall sales, saw EBIT ease off slightly against 2005 to EUR 22.6m (EUR 22.9m). Sales rose "in line with expectations" to EUR 574.8m (EUR 569.5m). In the Drivers Seat division, turnover increased 3% to EUR 266m. EBIT improved more dynamically, rising 28% to EUR 18.3m. In particular, new orders for truck seats picked up.
Despite ongoing restructuring efforts, the situation in Grammer´s smallest, Passenger Seat, division, remains difficult. Thanks to better business in the railway unit, which represents EUR 20m in annual sales, divisional turnover rose 19% to EUR 45m. EBIT also improved, but was still a negative EUR 1.4m, about half the loss of EUR 2.7m seen a year earlier. The still inadequate earnings situation has fuelled already existing plans to sell the bus seat unit. The company is seeking a "strategic solution" for this business, with a decision is to be taken during the first half of 2007. One option is a management buyout.
e-Service:
Grammer presentation with segment figures 2006 as PDF-Dokument (6,897 KB)
For 2006, Grammer reported EBIT up 19% against 2005 to EUR 38.8m on total sales of EUR 881m (EUR 859m). Due to investment in the new Chinese production sites, net debt rose by almost EUR 20m to just under EUR 58m. For 2007, the company intends to increase sales and EBIT by 3-5% across all divisions.
The Automotive division, the company´s largest with a 65% share of overall sales, saw EBIT ease off slightly against 2005 to EUR 22.6m (EUR 22.9m). Sales rose "in line with expectations" to EUR 574.8m (EUR 569.5m). In the Drivers Seat division, turnover increased 3% to EUR 266m. EBIT improved more dynamically, rising 28% to EUR 18.3m. In particular, new orders for truck seats picked up.
Despite ongoing restructuring efforts, the situation in Grammer´s smallest, Passenger Seat, division, remains difficult. Thanks to better business in the railway unit, which represents EUR 20m in annual sales, divisional turnover rose 19% to EUR 45m. EBIT also improved, but was still a negative EUR 1.4m, about half the loss of EUR 2.7m seen a year earlier. The still inadequate earnings situation has fuelled already existing plans to sell the bus seat unit. The company is seeking a "strategic solution" for this business, with a decision is to be taken during the first half of 2007. One option is a management buyout.
e-Service:
Grammer presentation with segment figures 2006 as PDF-Dokument (6,897 KB)
13.04.2007 Plasteurope.com [207827]
Published on 13.04.2007
German version of this article...