Grammer AG Business Report FY2010

Business Highlights

Financial Overview

(in million EUR)
  FY2010 FY2009 Rate of Change(%) Factors
Revenue 929.7 727.4 27.8 1)
EBIT 32.9 (23.9) - 2)
Revenue 610.2 495.5 23.1 3)
EBIT 21.4 (3.9) - -
Seating Systems
Revenue 341.9 247.1 38.4 4)
EBIT 17.6 (9.9) - -

-Over the past year, the company generated growth in revenue of 27.8%, to EUR 929.3 million (2009: 727.4). Group revenue was thus higher than the full-year forecasts, which had already been raised twice. The company profited in particular from a surprisingly strong recovery across the entire industry.
-Prior to auditing, Group EBIT is anticipated to be EUR 32.7 million (2009: -23.9). This equates to an increase of EUR 56.6 million over last year’s figure and an EBIT margin of 3.5% for fiscal year 2010. The significant rise in EBIT can be attributed to higher revenue as well as measures implemented to increase efficiency and lower costs. In the fourth quarter, Group revenue was roughly EUR 252.3 million (2009: 208.9), brought about by strong demand in both segments. Group EBIT was roughly EUR 9.7 million, an increase of EUR 8.9 million over 2009.
-The Automotive division benefited not only from new production startups, but also from increasing demand from abroad for premium class vehicles. The primary drivers of growth in this area were the US and Chinese markets. Revenue for 2010 as a whole was approximately EUR 610.2 million. In crisis year 2009, revenue in the division totaled EUR 495.5 million. That translates to an increase of 23.1% year over year.
-In the Seating Systems division, revenue rose to EUR 342.5 million (2009: 247.1) as a result of strong demand worldwide. This substantial increase of 38.6 percent resulted from rising truck demand and recovery in the offroad vehicles market. Above-average growth was generated particularly in China and Brazil.


-The Company supplies center consoles, which are produced at its facility in Tetla, Mexico, for the new Volkswagen Jetta. The new Jetta is available mainly in North America and Europe. Volkswagen plans to produce more than 1.8 million of the vehicles by 2016. (From a press release on October 20, 2010)

-The Company supplies interior components for the new Volkswagen Touareg: front and rear headrests, armrests in the front and rear and the center console. (From a press release on July 2, 2010)

-The Company supplies active head restraint system for Chrysler Group vehicles - 2010 Dodge Caliber, Jeep Compass, Dodge Nitro, Jeep Liberty, Jeep Patriot, Chrysler Sebring, Dodge Avenger and Dodge Journey.. (From a press release on February 8, and January 25, 2010)

-The Company supplies center console for GM's 2010 Buick LaCrosse. The model debuted in the US, following its 2009 launch in China. The console was created by the Grammer Automotive product development centers in China and the US. (From a press release on January 25, 2010)


R&D Expenditure

(in million EUR)
  FY2010 FY2009 FY2008
Total 33.0 32.2 39.2

Investment Activities

Capital Expenditure

(in million EUR)
  FY2010 FY2009 FY2008
Overall 38.1 32.7 39.9
Automotive 22.0 22.4 24.9
Seating Systems 15.8 9.5 13.7

Investment Activities

-Capital expenditure by the Company in 2010 totaled EUR 38.1 million (2009:32.7).

-In its Automotive segment, the Company invested EUR 22.0 million, almost as much as in the prior year (2009: 22.4). The focus was mainly on new production facilities for pending customer projects and further expansion of the sites in Serbia, Mexico, Shanghai and Schmolln, which will contribute to optimizing our cost structure as low pay scale locations for sewing operations featuring integrated production with a high degree of automation.

-Integrated center console production, which requieres a greater intensity of investment, is necessary because of the orders received, and it is the basis of the Company's future grouwth potential.

-The Company continues to carry out lean optimizations which are designed to increase efficiency at it's production facilities.