In 2007, the operating profit reported by Grammer (Amberg / Germany; www.grammer.com) dropped below the 2005 level. Group sales came to EUR 998m (2006: EUR 881m) and EBIT was EUR 32.1m (2006: EUR 38.9m), giving a margin of 3.2% (2006: 4.4%). In 2005 Grammer reported EBIT of EUR 32.6m.

The dip in earnings was principally due to the Automotive division, which is still the largest segment and accounts for 65% of sales. In absolute terms, this division reported sales of EUR 658m. EBIT slipped to EUR 10.7m, down from EUR 22.7m in the previous year. Grammer attributes the sharp downturn to “product-related difficulties at ramp-ups, particularly in the USA”. The group’s second major segment, Seating Systems, was not fully able of offset this decline in earnings. However, it did manage to raise segment EBIT to EUR 24.1m (2006: EUR 16.8m).

Looking at the geographical split, sales totalled EUR 752m in Europe (2006: EUR 687m). There was a particularly sharp rise in business overseas, especially in the Americas, where sales grew 41% to EUR 151m.

The group is forecasting good earnings from trucks in 2008. Orders from the automotive sector are positive according to the management. Overall, EBIT is expected to improve slightly and Grammer predicts that sales will exceed the one billion threshold. However, growth is mainly expected to come from overseas markets such as Asia, where Grammer is continuing its efforts to acquire new customers, for example in China and the Japanese OEM segment.

e-Service:
Annual report for the Grammer Group for 2007 as a PDF document (4,696 KB)