Amberg, Germany – Grammer saw consolidated sales rise by 7.5% to EUR 485 m ($532 m) in the first quarter of 2017 compared to EUR 426 m the 2016 quarter.
The German automotive seating company said that Ignoring currency effects, earnings before interest and taxes (EBIT) improved sharply to EUR 23.1 m compared to EUR 17.3 min the first quarter of 2016. The company said that both of its business segments contributed to significant increases in sales and profitability.
The company said its Grammer segment sales were up 6.1% to EUR 335.5 m and earnings before interest and tax were EUR 14 m up from EUR 8.6m in the same quarter of 2016. The commercial vehicle segment (previously seating systems) saw sales reach EUR134 m compared to EUR 122 m in the 2016 quarter. This was despite the continued “subdued market development in Brazil and agricultural technology” which was offset by “growth in the truck segment in China and Europe in and in construction machinery and materials handling.
In the automotive sector, the company said “it is already recording a noticeable decline in incoming orders for new, future projects. This situation could be further aggravated by a significant influence or even a change of control and is a substantial threat not only to the order situation, but also to the future of the company.”
The firm added that automotive manufacturers have made it clear that they will review and re-evaluate their relationships with Grammer if the company faces a takeover by Hastor Group in an upcoming annual general meeting.
Grammer expects to see sales in the group increased by around 5% in 2017 compared to 2016 and the margin at the (EBIT) level is also expected to be around 5%.