GRAMMER AG Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million EUR)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Rate of Change (%) Factors
Revenue 1,143.6 1,093.5 4.6 1)
EBIT 47.3 49.4 (4.3) -
Automotive Division
Revenue 711.1 680.3 4.5 2)
EBIT 30.5 26.9 13.4 -
Seating Systems Division
Revenue 449.7 438.0 2.7 3)
EBIT 24.7 30.6 (19.3) -

1) Overall
-The Company brought in revenue totaling EUR 1,143 million in 2012 -another new record in the more than 60-year history of the Company. Business in Asia continued to see very positive development, with the revenue growth of 12.8%. Revenue in the Americas region was 5.6% higher in 2012. In Europe, revenue increased to 2.6%, despite considerable contraction in car and truck markets.

2) Automotive Division
-The Division saw revenue of EUR 711.1 million, an increase of 4.5%. Revenue increased in the Americas and China, partly because components previously exported from Europe are now being produced locally.
-The Division saw revenue decline somewhat on weakness of demand in European submarkets, despite solid sales in the premium segment.

3) Seating Systems Division
-Revenue in the Division was up slightly in 2012 despite slumping truck markets worldwide. Although the commercial vehicle market contracted in Europe and Brazil, the special situation resulting from new production starts was enough to compensate market weakness.


-In December 2012, the Company announced that it has signed a purchase agreement for the takeover of Nectec Automotive s.r.o., under which Grammer acquired 100% of share capital in Nectec s.r.o. from Fehrer Group. Nectec develops and produces headrests mainly for the premium car segment. The headquarters of Nectec and its production facilities are located in Ceska Lipa, Czech Republic. Nectec has roughly 240 employees and generated revenue of more than 30 million euros in fiscal year 2011. Grammer also acquires the 50% stake held by Nectec s.r.o. in a joint venture with Chinese automotive supplier NingBo Jifeng. (From a press release on December 10, 2012)

Joint Venture

-In December 2012, the Company and Jiangsu Yuhua Automobile Parts Co. Ltd., a Chinese supplier of components for commercial vehicles and passenger cars, signed an agreement to establish a joint venture for the production and distribution of truck and bus seats in China. Sixty percent of the new joint corporation Grammer Seating (Jiangsu) Co. Ltd., located in Jiangyin, Jiangsu Province, China is held by Grammer AG. Yuhua owns a forty percent stake. (From a press release on December 17, 2012).


R&D Expenditure

(in million EUR)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Total 36.1 37.7 32.4

R&D Facilities

-The Company holds R&D centers in Germany, China, Turkey, Brazil and the USA.

Product Development

-In September 2012, GRA-MAG Truck Interior Systems, LLC, a joint venture between Grammer AG and Magna Seating, an operating unit of Magna International Inc., is launching the new GT700 series seats for Kenworth's T700 and Peterbilt's 587 trucks targeted for the fourth quarter of 2012. The new GT701, GT702, and GT703 seats have a range of options and features, including an advanced air suspension system that can automatically adjust to the driver's weight and all offer optional heating. In addition, these seats come in vinyl, cloth or ultraleather. (From a press release on September 19, 2012).

Investment Activities

Capital Expenditure

(in million EUR)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Overall 39.4 37.6 38.1
Automotive Division 24.8 14.8 22.0
Seating Systems Division 13.8 22.1 15.8

Investment Activities

<Automotive Division>
-The Company invested at 24.8 million euro or around 10 million euros higher than the previous year to the Division. Investments went mainly to new production facilities for pending customer projects and expansion of the sites in Changchun (China), and Mexico, which will contribute to optimizing its cost structure as low-cost locations featuring as well as offering integrated production with a high degree of automation.

-Investments in the integrated center console production is necessary due to the orders received, and forms basis for its future growth potential.

-The Company continues to carry out lean optimizations which are designed to increase productivity at its plants.

<Seating Systems Division>
-Capital expenditure to the Division in 2012 decreased by 37.6% year-on-year. Set up of production for the new generation MSG 115 truck seats required substantial investment in the Czech Republic and Germany. Investments were also made in expansion of production in Brazil for the booming South American market.

R&D Expenditure

-In May 2012, the Company announced that Grammer Group invested a total of 7.8 million euros in the first quarter of 2012. In the Seating Systems division, 4.9 million euros were invested, primarily in the building of production capacities for the new generation truck seats and production optimization measures. A total of 2.8 million euros were invested in the Automotive division, mainly in the buildup of center console production capacities to fill orders received in 2011. (From a press release on May 9, 2012).