Grammer raises revenues & earnings expectations

GRAMMER AG (WKN 589540, ISIN DE0005895403), automotive supplier and seating systems manufacturer, is raising its revenues and earnings forecast for the 2010 fiscal year, due to better than expected business development.

For the 2010 fiscal year, the company now expects revenue growth of approximately 20 percent in comparison to the previous year (2009: 727.4 million EUR). Subject to stable market and exchange rate development, the operating profit (EBIT) margin should amount to between 3.2 and 3.5 percent for full year 2010. Previously, GRAMMER AG had forecasted revenue growth of around 10 percent and an EBIT margin of around 3 percent.

Reasons for the improved outlook in the current business year are better than expected development during the summer months and a good order situation in both business segments. The typical seasonal decline caused by the customers production holidays during the months of July and August was much less pronounced than initially expected due to the positive economic development. Furthermore, unflagging demand in China and North America for German-made premium cars, as well as the positive order situation in both GRAMMER AG business segments are supporting the positive business performance. GRAMMER AG sees potential risks for the further business development, mainly in the development of currency exchange rates and raw material prices. Additionally, the length of the customers Christmas holidays could influence year-end business more strongly than expected.