Author: Grammer Online News

Grammer Preliminary figures for the fourth quarter and the 2020 financial year

01/21/2021
Preliminary figures for the fourth quarter and the 2020 financial yearPublication of inside information in accordance with Article 17 of Regulation (EU) No. 596/2014
GRAMMER AG (WKN 589540, ISIN DE0005895403)

Preliminary figures for the fourth quarter and the 2020 financial year

Ursensollen, January 21, 2021 – On the basis of its preliminary figures, Grammer AG expects to report group revenue of around 1.711 million euros for the 2020 financial year, roughly 16 percent lower than in the previous year (2019: 2,038.5 million euros). Group revenue for the fourth quarter should stand at around 514 million euros (2019: 488.9 million euros). Revenue performance in the third and fourth quarter recovered significantly over the first half of the year, which was heavily impacted by the economic effects of the COVID-19 pandemic.
Earnings before interest and taxes (EBIT) for the year as a whole were particularly impacted by exceptional effects primarily related to restructuring measures totaling around 20 million euros as well as one-time effects of roughly 48 million euros and are expected to come to roughly minus 49 million euros, compared with 74.5 million euros in the previous year (EBIT Q4 2020: roughly minus 2 million euros vs. EBIT Q4 2019: 12.6 million euros). Adjusted for the exceptional effects, operating earnings before interest and taxes (operating EBIT) should reach around minus 15 million euros, falling short of the previous year’s figure of 77.0 million euros (operating EBIT Q4 2020: around 9 million euros vs. operating EBIT Q4 2019: 17.8 million euros).
Among other things, the restructuring measures entail the consolidation of sites in Europe and North America as well as job cuts in indirect areas, primarily in Germany.
The main one-time effects include optimization of storage areas and the related impairments on inventories. In addition, provisions have been set aside to cover possible warranty claims as well as impairments of existing project assets.
Grammer AG will be publishing its full Annual Financial Statements and its Annual Report for 2020 on March 31, 2021.
Grammer AG
The Executive Board
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Grammer AG: Positive operating performance with improved markets in the third quarter of 2020

10/29/2020
Grammer AG: Positive operating performance with improved markets in the third quarter of 2020 Grammer AG: Positive operating performance with improved markets in the third quarter of 2020
-Revenue and earnings benefiting from improved markets and strict cost management in the third quarter
-Group revenue at 461.7 million euros and, thus, only 7.3 percent down on the previous year, after a 30-percent decline in the first half of the year
-Operating EBIT margin of around 5 percent as a result of successful crisis management
-Restructuring measures laying the foundations for a sustainable improvement in competitiveness
-Further milestones achieved in expanding business in APAC
-Resolution passed to issue fresh equity of 40 million euros from authorized capital subject to shareholders’ preemptive subscription rights
Ursensollen, October 29, 2020 – After being materially impacted by the effects of the COVID-19 pandemic in the first six months of the year, Grammer’s business performance improved significantly in the wake of the recovery of the markets in the third quarter. Thus, Group revenue came to 461.7 million euros in the period from July through September, falling only 7.3 percent short of the same quarter of the previous year (Q3 2019: 498.1 million euros). This performance is materially due to growth in APAC (Asia Pacific) as well as improved markets in the Americas (North, Central and South America) and EMEA (Europe, Middle East and Africa). At 1,197.5 million euros in the first nine months, Group revenue was down almost 23 percent on the previous year.
Significant improvement in operating EBIT
In the third quarter, operating EBIT reached 22.4 million euros accompanied by an EBIT margin of 4.9 percent, thus significantly exceeding the same period in the previous year (Q3 2019: 9.1 million euros, 1.8 percent). This improvement was particularly driven by the global recovery in revenue, the successful implementation of operational measures and ongoing strict cost management. In addition to the negative currency-translation effects of 3.1 million euros, operating earnings in the third quarter were adjusted for the directly attributable costs of the corona-related protection and response measures (1.3 million euros) as well as provisions of 12.2 million euros for restructuring measures.
Accordingly, operating EBIT came to -23.3 million euros in the period from January through September 2020 (01-09 2019: 59.2 million euros).
Earnings before interest and taxes (EBIT) amounted to -47.2 million euros in the first nine months (01-09 2019: 61.9 million euros). They were impacted by a significant decline in volumes due to the global COVID-19 pandemic, the negative one-time effects in the first half of the year and restructuring expenses in the third quarter.
“After the impact of the COVID-19 pandemic hit us very hard, especially in the second quarter in the Americas and EMEA, our operating business performed extremely positively worldwide in the third quarter. Whereas APAC has been posting revenue growth since April, we are now also seeing improved markets in the Americas and EMEA,” says Thorsten Seehars, Chief Executive Officer of GRAMMER AG, commenting on the current situation. “To safeguard our company’s sustained competitiveness, we have made our global organization leaner and more flexible and initiated preliminary restructuring measures. The effects of the cost discipline are already being reflected in the increase in our operating EBIT margin in the third quarter. Looking forward to the fourth quarter, we continue to see high uncertainties particularly given the added momentum that the corona situation has recently gained.”
Restructuring measures laying the foundations for a sustainable improvement in competitiveness
The efficiency-enhancement program launched in the fourth quarter of 2019 to optimize operating processes and cost structures has been continued and intensified in all areas in the current year. A new, more regionally focused organization, which accelerates decision-making processes within the Group, as well as numerous measures to sustainably improve the Group’s cost structure were implemented in the first nine months despite the COVID-19 pandemic.
Among other things, the restructuring measures adopted in the third quarter entail the consolidation of sites in Europe and North America and a reduction of roughly 300 jobs in indirect areas at several German locations, which is to be implemented by mid-2021 with minimum social hardship. To this end, a comprehensive voluntary program has been implemented together with the social partners.
Markets improved in all regions
APAC was negatively impacted by the government-ordered plant closures in China in the first quarter in particular. Revenue rose in the second quarter due to new product launches and the market recovery, rising by 10.7 percent over the same quarter in the previous year to 84.9 million euros in the third quarter (Q3 2019: 76.7 million euros). APAC posted revenue of 224.6 million euros in the period from January through September, thus falling only 1.6 percent short of the same period in the previous year (01-09 2019: 228.4 million euros).
EMEA sustained a substantial decline of 48.8 percent in revenue to 147.7 million euros in the second quarter in particular as a result of the pandemic-induced plant closures. However, revenue in the third quarter increased substantially over the previous quarter to 229.4 million euro, declining by only 15 percent year-on-year (Q3 2019: 268.6 million euros). Revenue in EMEA came to 640.6 million euros in the period from January through September, marking a year-on-year decline of 25.8 percent (01-09 2019: 863.8 million euros).
The situation was similar in the Americas, where revenue dropped by 27.3 percent to 332.3 million euros in the first nine months (01-09 2019: 457.4 million euros). Revenue in that region also climbed significantly from 47.1 million euros in the second quarter to 147.4 million euros in the third quarter.
Further milestones achieved in expanding business in APAC
As the world’s largest single market for cars and commercial vehicles, China offers enormous potential for Grammer. Measured in terms of global Group revenue, Grammer currently generates around 19 percent of its business in the Chinese automotive market. With two new plants in Ningbo and Shenyang, Grammer will be expanding its footprint in China by the beginning of next year and positioning itself for further planned growth in both divisions by improving its proximity to key customers.
Another focus for Grammer is the strategic partnership with Ningbo Jifeng. Since the beginning of the year, the two companies have been working on a variety of joint projects to harness purchasing and production synergies, to expand the product ranges and to improve market access in certain regions. At the end of March, a contract establishing a worldwide purchasing partnership was signed and promises the two partners savings in the double-digit millions over the next few years. In October, Grammer and Ningbo Jifeng decided to establish a sales partnership for the Japanese market, which Grammer hopes will give it better access to Japanese automotive OEMs.
With a total of seven production and two research and development sites in China, Grammer has an outstanding platform for additionally expanding its customer base in APAC and supporting its growth targets in Asia.
Both divisions outperforming the market
Despite the COVID-19-induced decline in revenue, Grammer outperformed the overall market in the period from January through September in its two divisions.
Revenue in the Automotive Division dropped by 24.1 percent to 844.0 million euros in the first nine months (01-09 2019: 1,112.3 million euros). This substantial decline is chiefly due to the effects of the COVID-19 pandemic in the first half of 2020 and coincided with the weakness that had already emerged in the second half of 2019 in the automotive markets. The third quarter saw a substantial recovery in revenue to 344.9 million euros (Q3 2019: 367.3 million euros). Consequently, the third quarter was only 6.1 percent down on the same quarter of the previous year. The measures taken in response to the COVID-19 pandemic merely cushioned the effects on earnings caused by the substantial decline in revenue. Moreover, one-time effects exerted pressure on EBIT in the second quarter. In addition, provisions of 5.0 million euros were recognized for restructuring in the third quarter. EBIT for the period from January through September came to -52.0 million euros (01-09 2019: 34.3 million euros). Adjusted for currency-translation losses, the directly attributable costs of the COVID-19 protection and response measures and termination benefit expenses, operating EBIT stood at -40.5 million euros in first three quarters.
The Commercial Vehicles Division sustained a 17.5 percent decline in revenue in the first nine months to 391.4 million euros (01-09 2019: 474.6 million euros). This decline was also materially caused by the COVID-19 pandemic. It additionally reflects the extraordinarily high demand recorded in the Commercial Vehicles Division in the same period of the previous year. In the third quarter, revenue came to 134.8 million euros, falling 5.3 percent short of the same quarter of the previous year (Q3 2019: 142.4 million euros). However, the measures taken in response to the COVID-19 pandemic were not sufficient to fully offset the substantial decline in revenue and the negative impact of the one-time effects in the second quarter of 2020. EBIT came to 12.1 million euros in the period from January to September. Negative currency-translation effects of 3.3 million euros, directly attributable costs for corona-related protection and response measures and restructuring expenses were eliminated from operating EBIT, which thus came to 20.9 million euros in the period from Jan..

Grammer MSG 90.6 truck seat enjoying success in China

08/11/2020
Grammer MSG 90.6 truck seat enjoying success in ChinaGrammer MSG 90.6 truck seat enjoying success in China
-Multiple starts of production at Chinese OEM’s
-Convincing ergonomics, comfort and safety
-Quality and local presence as key success factors
Ursensollen, August 11th, 2020 – Grammer truck driver seats are in strong demand in China, with a number of new series production starts of MSG 90.6 series scheduled at several well-known Chinese OEM customers in 2020. Comfortable, ergonomically designed driver’s seats are an essential factor in modern trucks. They allow the driver to concentrate and ensure fatigue-free driving even over long distances. In China, this is becoming increasingly important, offering Grammer further growth opportunities in the world’s largest commercial vehicle market. Manufactured locally at Grammer facilities in China, the MSG 90.6 series seats have been designed to meet market-specific customer requirements.
“As a manufacturer of high-quality driver seats for commercial vehicles, we are benefiting from the growing awareness of ergonomics, comfort and safety in the important Chinese market. The numerous new product launches are a confirmation of our attractive product portfolio and our strong local presence.” says Thorsten Seehars, Chief Executive Officer of Grammer AG. “In this way, we are creating the basis for further growth in the largest truck market worldwide.”
High comfort and intuitive operation
Grammer’s MSG 90.6 series, which has enjoyed success and proven itself over many years, especially in the European market, features high-level comfort and special ergonomic functions. Fitted with pneumatic suspension, the seats offer optimum seating comfort and have numerous adjustable features – from the base-level trim to the high-end version.
The innovative features of the MSG 90.6 include intuitive operation, well thought-out ergonomics and practical functions for ensuring protection and safety in the cabin. The MSG 90.6 meets the highest demands of professionalism thanks to its high ease of use. All the necessary functions are integrated in the seat. As well as this, special attention has also been paid to the operability of these functions. In this respect, Grammer has consistently implemented its “Design for Use” philosophy, ensuring that the MSG 90.6 seats can be operated with ease. The shape and positioning of the buttons and levers on the seat reflect their function and direction of operation. In this way, the unique shape of each switch prevents mix-ups when the seat is adjusted.
Active seat climate control to ensure driver’s well-being in all temperatures
In addition to optimum adjustment, the climate control of commercial vehicle seats is also an important priority. This is why Grammer also offers the MSG 90.6 with active seat climate control. The system provides the driver with scope for individual adjustment during all seasons. In winter, the integrated heating provides pleasant warmth. During the warmer seasons, Grammer’s active seat climate control system creates an excellent seat climate by leveraging the positive properties of activated carbon: moisture produced by the body where it comes into contact with the seat is removed by the material of the seat cover and temporarily stored in the layer of activated carbon beneath. The seat surface hence remains pleasantly dry even in extreme heat. In contrast to conventional seat climate control systems, which generate a cooling effect by blowing air directly onto the body, the Grammer system supports the natural cooling system of the human skin.
About Grammer AG
Located in Ursensollen, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, Grammer supplies headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, and forklifts) as well as train and bus seats. With about 14,500 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.

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Grammer and audio specialist HARMAN forging partnership for “best-in-class” sound headrest

09/28/2020
Grammer and audio specialist HARMAN forging partnership for “best-in-class” sound headrest -Cooperation for the development of various concepts and products for upgrading the vehicle interior
-Integrating audio systems in headrests yields innovative communication solutions for all vehicle occupants
Ursensollen, September 28th, 2020 – The Grammer Group, an international supplier of passenger car interior solutions and seating systems for the commercial vehicle, rail and bus sectors, announced today a long-term partnership with HARMAN International Industries, a wholly owned subsidiary of Samsung Electronics Co, Ltd., which designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide. Together, they will be offering integrated audio solutions for the passenger car market in the future. The preliminary designs are to be presented to the industry as early as in spring 2021.
“This strategic partnership with HARMAN marks a further step towards positioning Grammer as the preferred partner of the automotive industry for innovative interior solutions,” says Thorsten Seehars, Chief Executive Officer of Grammer AG. “I am convinced that the expertise held by both companies will lead to groundbreaking solutions for our customers.”
Importance of interior and seating systems growing
The transformation of the automotive sector is yielding considerable enhancements to the vehicle interior. New propulsion technologies and particularly autonomous driving will usher in a new driving experience. Growing automation will make it possible for passengers to use the time spent in the vehicle for other purposes. Looking forward, it will become increasingly important to offer individual entertainment offerings, such as talking on the phone, using the internet or listening to music. It should be possible to do this comfortably for the respective user, but at the same time without disturbing the other passengers.
“We are witnessing the beginning of a significant change in user needs in the vehicle interior. The trend is moving towards far greater individualization, especially in the multimedia sector. Sound zone technologies and noise cancellation are just a few of the technologies that can be integrated into existing interior solutions in a design-optimized way through this partnership,” says Dr. Michael Borbe, Group Vice President R&D of Grammer AG.
Partnership between two market leaders
Under this partnership, two leading companies will be working together to jointly offer integrated audio solutions in the future. To this end, HARMAN is contributing its experience in automotive audio and active noise management systems as well as in the development of personalized and networked experiences in the vehicle, while Grammer holds expertise in innovative seat and interior solutions offering high comfort and ergonomics.
The aim of the partnership is to jointly develop a best-in-class audio system. Looking forward, one key element of this, namely the integration of audio components in the headrest, will enable individual audio programming for each passenger during the journey. This will improve the clear and direct communication between individual passengers, the individualized use of different audio services by each passenger and also offers the possibility to pass on specific signals of the vehicle acoustically only to the driver.

About Grammer AG
Located in Ursensollen, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, Grammer supplies headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, and forklifts) as well as train and bus seats. With over 14,500 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.
About HARMAN International
HARMAN (harman.com) designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide, including connected car systems, audio and visual products, enterprise automation solutions; and services supporting the Internet of Things. With leading brands including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®, Mark Levinson® and Revel®, HARMAN is admired by audiophiles, musicians and the entertainment venues where they perform around the world. More than 50 million automobiles on the road today are equipped with HARMAN audio and connected car systems. Our software services power billions of mobile devices and systems that are connected, integrated and secure across all platforms, from work and home to car and mobile. HARMAN has a workforce of approximately 30,000 people across the Americas, Europe, and Asia. In 2017, HARMAN became a wholly-owned subsidiary of Samsung Electronics Co., Ltd.
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Grammer invites to virtual Annual General Meeting

06/09/2020
Grammer invites to virtual Annual General MeetingGrammer invites to virtual Annual General Meeting
-Annual General Meeting on July 08, 2020 in virtual form for the first time
-The regular period of office of the six shareholder representatives on the Supervisory Board expiring at the end of the Annual General Meeting
-Four new shareholder representatives nominated
Ursensollen, June 09, 2020 – Grammer AG published the invitation to its Annual General Meeting (AGM) 2020 on June 08, 2020. In view of the exceptional circumstances caused by the COVID 19 pandemic, this Annual General Meeting will be fundamentally different to the ones of previous years. In the interests of all shareholders, employees and other parties involved, Grammer AG will be holding its Annual General Meeting in solely virtual form for the first time.
The period of office of the six members of Grammer AG’s Supervisory Board elected by the AGM ends at the end of the Annual General Meeting on July 08, 2020. Four of the six current shareholder representatives – including the current Chairman of the Supervisory Board, Dr. Klaus Probst – are not standing for re-election.
“After 15 years on the Supervisory Board, including 10 years as Chairman, I have decided not to stand for re-election to the Supervisory Board in order to pave the way for a new generation,” says Dr. Klaus Probst, Chairman of the Supervisory Board, commenting on the planned changes. “Thanks to the great commitment of all the employees of the Grammer Group, the Company has developed into a global and innovative partner to its customers in the automotive and commercial vehicle industries and is excellently positioned to meet the challenges it faces in the future – even in times of the Covid 19 pandemic.”
Experienced candidates nominated for election to the future Supervisory Board
Grammer AG’s Supervisory Board will be asking the shareholders to elect the following persons to the Supervisory Board as shareholder representatives on the basis of the recommendations of the Nomination Committee and taking into account the objectives adopted by the Supervisory Board for its own composition:
• Dr.-Ing. Ping He, Wenzenbach-Irlbach, development engineer in the Powertrain Division of Continental AG
• Mr. Jürgen Kostanjevec, Cologne, independent consultant
• Ms. Gabriele Sons, Berlin, attorney at the law firm Sons
• Mr. Alfred Weber, Stuttgart, former chief executive officer of MANN+HUMMEL GmbH
Dr. Peter Merten and Prof. Dr.-Ing. Birgit Vogel-Heuser will be standing for re-election to the Supervisory Board of GRAMMER AG thus ensuring continuity in its previous work following their election.
“At this stage, I would like to thank the members who will soon be leaving the Supervisory Board, Ms. Ingrid Hunger, Dr. Bernhard Wankerl and Mr. Wolfram Hatz, for their dedication and commitment over the past years,” Probst adds. “The proposed nominees are internationally experienced, independent industry and technical experts who will contribute to the Supervisory Board and the Company’s future development.”
About Grammer AG
Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles.
In the Automotive Division, Grammer supplies headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, and forklifts) as well as train and bus seats.
With over 15,500 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.
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Preliminary results for the second quarter of 2020 – significant negative impact on revenue and earnings as a result of the COVID-19 pandemic and exceptional effects

07/13/2020
Preliminary results for the second quarter of 2020 – significant negative impact on revenue and earnings as a result of the COVID-19 pandemic and exceptional effectsPublication of insider information pursuant to Art. 17 of (EU) Regulation No. 596/2014 GRAMMER AG (WKN 589540, ISIN DE0005895403)
Preliminary results for the second quarter of 2020 –
significant negative impact on revenue and earnings as a result of the COVID-19 pandemic and exceptional effects
Ursensollen, July 13, 2020 – Based on the preliminary figures, Grammer AG expects to achieve Group earnings before interest and taxes (Group EBIT) in the second quar-ter of 2020 that will be significantly below market expectations.

The Group EBIT for the second quarter is expected to stand at around minus 50 million EUR (previous year 26.2 million EUR). The operating EBIT is expected to amount to approximately minus 46 million EUR for the reporting period (previous year 27.1 million EUR).
According to preliminary figures, revenue should come to around 281 million EUR (previous year 517.4 million EUR).

The main reason for this significant decrease in revenue and earnings in the second quarter were the significant reductions in customer orders and the production stops of many OEMs. In particular, the closures of locations in Europe and America from March onwards had a massive impact on the Grammer Group’s business activities in these regions.

In addition, Group earnings came under significant pressure from exceptional effects of around 24 million EUR. These primarily included the planned optimization of stor-age areas in connection with the COVID-19 pandemic and the resultant write-downs of inventories. This was joined by write-downs of project assets and provisions for potential warranty claims.

Grammer AG will be releasing its full report on the first half of 2020 on August 13, 2020.

Grammer AG
The Executive Board

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Covid-19 Pandemic Significantly Impacts Grammer’s Revenue and Earnings

04/29/2020
Covid-19 Pandemic Significantly Impacts Grammer’s Revenue and Earnings
Covid-19 Pandemic Significantly Impacts Grammer’s Revenue and Earnings
-Effects of the Covid-19 pandemic negatively impact revenue and earnings in the first quarter
-Collapse in demand of customers and production restrictions lead to temporary plant closures around the globe
-Revenue down to 454.9 million euros in the period from January to March
-Operating EBIT at 0.4 million euros; EBIT at –2.1 million euros
-New organization for the Grammer Group successfully started in April

Amberg, April 29, 2020 – As a result of the global Covid-19 pandemic, Grammer AG has started 2020 with significant drops in revenue and earnings. Due to the collapse in demand and product orders in both segments, as well as the customers’ production restrictions, group revenue fell by 14.8 percent in the first three months to 454.9 million euros (01–03 2019: 534.1 million euros). The lower demand caused by the effects of the Covid-19 pandemic impacted sales markets that had already been weaker since the second half of 2019.
The temporary plant closures started at the end of January 2020 as a result of government orders in China, where production was however able to gradually restart beginning in March. This was followed by plant closures at European and American locations in mid-March due to customers halting production within those regions. Due to our own plant closures and extraordinary effects from exchange rates, EBIT in the first quarter fell to –2.1 million euros (01–03 2019: 24.0 million euros). The cost-saving measures already introduced were not able to compensate for the gap in revenue. Operating EBIT, adjusted for currency effects in the amount of 2.5 million euros, fell to 0.4 million euros (01–03 2019: 23.0 million euros). Operating EBIT margin was therefore 0.1 percent (01–03 2019: 4.3 percent).
“The Covid-19 pandemic has a massive impact on the global automotive industry and hence also its supply base. As an international partner to the major premium OEMs, Grammer is closely integrated in global supply chains and is directly affected by the drop in demand,” says Thorsten Seehars, Chief Executive Officer of Grammer AG, explaining the situation. “Despite the measures taken immediately and the continuous implementation of our performance program together with the introduction of short time working arrangements at all locations, it was not possible to avert the effects of the sharp drop in revenue on the Group’s earnings. However, as the new Executive Board we see the current crisis as confirming our decision to position Grammer more firmly on a regional basis and to implement other organizational measures that will make our company swifter and more flexible. Although we cannot prevent such market situations, our new organizational set-up does make it easier and faster for us to adapt to them. We are also seeing the first positive results of our new long-term strategy in the world’s largest automotive and commercial vehicle market in China, where our regional sales organization is currently in negotiations with various customers to increase our market shares.”

Impact of Covid-19 Pandemic Felt in All Regions
Group revenue in the first quarter of 2020 amounted to 454.9 million euros, thus coming in 79.2 million euros below the figure from the same period in the previous year. Initially, at the beginning of the year, restrictive measures to counter the continuing spread of the coronavirus only had to be taken in China. These measures included halting all production operations in addition to sweeping lockdown orders, which also led to a stark collapse in demand. As a result, sales in the APAC region fell by 25.6 percent to 53.6 million euros. Beginning in March, however, production was gradually restarted in China, reaching the levels from before the Covid-19 pandemic by April.
Since mid-March, the increasing infection numbers in Europe and the United States have led to the partial or complete shutdown of production facilities. Accordingly, at 263.5 million euros, revenue in Europe was significantly below the previous year’s level (01–03 2019: 307.0 million euros). In the Americas region, revenue decreased to 137.8 million euros (01–03 2019: 154.9 million euros).

Revenue Losses in Both Segments
Both of Grammer’s business segments have felt the impact of the drop in demand from the first quarter. In the Automotive segment, revenue decreased on account of both the plant closures in China, which lasted nearly two months, as well as the vehicle markets, which had been in decline since the second half of 2019 and were down 14.3 percent to 324.2 million euros. Despite the cost-saving measures that were introduced, operating EBIT in the segment still decreased to -7.8 million euros (01–03 2019: 10.6 million euros).
In the Commercial Vehicles segment, revenue dropped by 15.5 percent to 142.4 million euros. In addition to the plant closures in China and the restrictions in Europe and the Americas region, the exceptionally high revenue in the previous year´s quarter – because the first half of 2019 was characterized by an overall high demand in the Commercial Vehicles segment – also affects the comparative calculation. Operating EBIT amounted to 10.4 million euros (01–03 2019: 16.8 million euros).

Comprehensive Measures as Response to the Covid-19 Pandemic
Grammer introduced comprehensive measures from an early stage in response to the global crisis caused by Covid-19. In doing so, the automotive supplier was able to benefit also from the experiences of its locations in China, which had already been impacted by the restrictions. These measures include precautionary and safety measures for employees at all Grammer locations, the increased use of mobile working solutions, the use of all available working-time models, making use of available vacation time and the rapid implementation of hours reductions which was adopted promptly together with the employee representatives. To secure its financial situation, Grammer relies on maintaining detailed control of the worldwide cash flow as well as equity instruments such as a hybrid loan.

Equity Ratio Increases to 26 Percent
In February 2020, the Grammer Group concluded a new syndicated loan agreement in the amount of 150 million euros and 80 million US dollars, with a term of five years and two extension options of one year each. As a result, non-current financial liabilities increased to 288.8 million euros (December 31, 2019: 220.0 million euros) but simultaneously current financial liabilities decreased to 153.4 million euros (December 31, 2019: 207.7 million euros).
As of March 30, 2020, a hybrid loan in the amount of 19.1 million euros was granted by Ningbo Jifeng Auto Parts Co., Ltd., a company within the Ningbo Jifeng Group (the majority shareholder of Grammer AG). The hybrid loan was concluded with an indefinite term and has a quasi-equity characteristic.
As of the end of the quarter, the equity ratio amounted to 26 percent (December 31, 2019: 23 percent).

New Organizational Structure at the Grammer Group
Over the last few months, Grammer has enhanced its organizational structure in order to be able to react even more swiftly and flexibly to changing customer needs and to make operational decisions directly at a regional level. Responsibility for operating business has therefore been delegated in the three main regions Americas, EMEA and China. The various product segments in the passenger car business are being combined in one Automotive Division, which together with the Commercial Vehicles Division will perform an overarching function for managing the global customer and product strategy and ensuring best coordination of global projects. Group functions will support the regions and divisions in the execution of their strategies and are responsible for corporate governance and for ensuring effective business processes worldwide. This new organizational structure has been rolled out step by step across the entire Group since April 1, 2020.

Forecasting Development for 2020 as a Whole Not Possible
After China, the Covid-19 pandemic is currently making itself felt in Europe and North America. While industrial production in China has largely returned to normal levels, the other two regions are currently still feeling the strain of significant restrictions. For this reason, we should expect the global economy to continue to be massively impacted during the second quarter of 2020.
In the Automotive segment, production has resumed at all Grammer plants in China and is approximately at pre-crisis levels by now. Following the shutdowns in the plants in China, the start-up of the truck seat production progressed more quickly than in the Automotive segment and may hence imply stronger demands in the months to come. In Europe, leading automobile manufacturers announced that they intend to gradually restart production beginning in May. Resumption of operations depends on the ability to ensure the health and safety of employees and the status of the supply chains, as well as the expected customer demands.
The forecast published in the 2019 annual report for the 2020 fiscal year was suspended with the press release on March 30, 2020. The estimations and expectations contained in that forecast are based on market assumptions and internal evaluations from the beginning of 2020. In light of the extremely dynamic nature of developments and the associated uncertainty as part of the Covid-19 pandemic and the accompanying economic effects, forecasting the remainder of the 2020 fiscal year is not currently possible. Grammer will issue a forecast as soon as this is sufficiently possible.
Company Profile
Grammer AG, based in Amberg, Germany, specializes in the development and production of components and systems for car interiors as well as driver and passenger seats with suspension for on- and off-road vehicles. In the Auto..

Major Negative Impact on Revenue and Earnings in the First Quarter of 2020 as a Result of the COVID-19 Pandemic

04/15/2020
Major Negative Impact on Revenue and Earnings in the First Quarter of 2020 as a Result of the COVID-19 PandemicPublication of Insider Information pursuant to Article 17 of Regulation (EU) No. 596/2014
GRAMMER AG (WKN 589540, ISIN DE0005895403)
Major Negative Impact on Revenue and Earnings in the First Quarter of 2020 as a Result of the COVID-19 Pandemic

Amberg, April 15, 2020 – Based on the preliminary figures, Grammer AG expects group revenue in the first quarter to amount to 455 million EUR (prior year: 534 million EUR).
The operating earnings before interest and taxes (operating EBIT) are expected to amount to approximately 0.5 million EUR (prior year: 23 million EUR) for this reporting period. The EBIT will likely come in around -2 million EUR (prior year: 24 million EUR) due to negative exchange rate effects.
The predominant cause of this significant decrease in revenue and earnings in the first quarter were the significant reductions in customer orders and the worldwide production stops of many OEMs. In particular, the closures of locations in China during the months of January and February, as well as of European and American locations starting in March, severely limited the business activities of the Grammer Group in these regions.
In this regard, the far-reaching effects of the COVID-19 pandemic added to already weak global automotive markets and the significantly reduced demand year-over-year in Grammer’s higher-margin commercial vehicles segment.
In the first quarter, the company concluded – in collaboration with the employee representatives – a package of comprehensive measures that provides for a corresponding adjustment of operating activities to the substantial reduction in demand.
The publication of the quarterly report for the first quarter of 2020 will take place as planned on April 29, 2020.
Grammer AG
Executive Board

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Grammer expects decrease in revenues and weaker earnings in the first quarter 2020

03/03/2020
Grammer expects decrease in revenues and weaker earnings in the first quarter 2020
-Effects of coronavirus have an adverse impact on revenues and earnings in the first quarter
-Decline in global vehicle production in both segments leads to reduced revenues and earnings in 2020
-First measures of the efficiency enhancement program implemented
-Reduced dividend proposal to strengthen equity
Amberg, March 03, 2020 – The decrease in demand in the automotive sector and an ongoing difficult economic climate in the commercial vehicle sector are having a visible effect on automotive supplier Grammer at the beginning of 2020. As a result of the coronavirus outbreak, customers in China were forced to stop production for several weeks from the end of January on. Due to these factors, the company is now predicting a significant decrease in revenues for the first quarter compared to the previous year (Q1/2019: EUR 534 million). Based on the preliminary figures for the months of January and February 2020, Grammer assumes earnings before interest and taxes (EBIT) (prior year: EUR 24 million) and operating EBIT (prior year: EUR 23 million) for the first quarter to be very significantly lower than in the same period of the last year.
From today’s perspective, it is difficult to predict the full extent of the negative effects of the coronavirus outbreak on global supply chains as well as markets and whether automobile and commercial vehicle demand will stabilize in the second half of the year. For this reason, Grammer is forecasting a decline in sales and earnings for the full year. The outlook for 2020 will be published on March 30 at the Company's Annual Press Conference.
As a result of the significant decline in the worldwide markets since mid-2019, the company does no longer maintain its original revenues and earnings forecast for the coming years.
“The weakening of the market environment affected Grammer later than many other suppliers. Additionally the simultaneous decline in both, the premium automobile segment and the commercial vehicle markets, is now also impacting our core business,” said Thorsten Seehars, CEO of Grammer AG. “We have implemented the first measures from the efficiency enhancement program which we initiated at the end of last year to position the company for these challenges.”
In order to give the company greater financial flexibility in implementing further measures, the Executive Board resolved yesterday to propose to the Annual General Meeting a dividend of EUR 0.11 per share for the financial year 2019.
The company will publish its annual report for the financial year 2019 on 30 March, 2020, the interim management statements for Q1/2020 on 29 April 2020.
About Grammer AG
Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles.
In the Automotive Division, Grammer supplies headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, and forklifts) as well as train and bus seats. With over 15,500 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.
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Grammer AG organizing second International Comfort Congress

08/27/2019
Grammer AG organizing second International Comfort Congress International Comfort Congress 2019 taking place on August 29 – 30 in Delft, Netherlands, in conjunction with universitiesFirst-time presentation of Grammer AG’s interior concept for the future: “PURE: the freedom to move”Amberg, August 27, 2019 – Following the great success of the first congress in 2017, Grammer AG is organizing the second International Comfort Congress in conjunction with the University of Salerno (Italy), Nottingham Trent University (United Kingdom) and the University of Technology of Amberg’s partner city Delft (Netherlands).
The 2019 International Comfort Congress (ICC) is being held on August 29 – 30 in Delft and will be providing a forum for research into product comfort. At the congress, representatives from the research community and industry will be able to discuss and share ideas on methods for evaluating and quantifying comfort. In two parallel series of over 50 presentations, a holistic approach will be taken to vehicle comfort and particularly human/product interaction.
The findings of the International Comfort Congress will be subsequently leveraged in the methodology development and process assessment of Grammer AG’s research and development activities.
First-time presentation of the “PURE: the freedom to move” project
During the ICC, the experts at Grammer AG will be unveiling the new interior concept known as “PURE: the freedom to move” for greater driving comfort in autonomous vehicles.
Grammer has launched the “PURE” project in order to stay ahead of the major megatrends such as autonomous driving, connectivity and digitalization. Working with an internationally renowned automobile design studio, Grammer is developing the products of the future.
The “PURE” project mainly concentrates on the core aspects of comfort, ergonomics and safety. In this connection, aspects such as motion sickness, the modularity of interior components, sustainable materials, new functions and the mobile workplace are being explored in detail to prepare for interior of the future in 2035.
Company profile
Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles.
In the Automotive Division, we supply headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, forklifts) as well as train and bus seats.
With approximately 15,000 employees, Grammer operates in 19 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.
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