GERMANY: Grammer boosts sales and pre-tax profits
Amberg, Germany - based automotive interior components and seating systems supplier Grammer has reported increased revenue and earnings before interest and taxes for the first nine months of 2006.
Revenue rose $23m from $816.1m in 2005 to $839.1m in 2006. Earnings before interest and taxes climbed 25.1% to $37.1m from $29.6m. Earnings per share rose 44.2% to $1.75.
Automotive, Grammer's largest division, performed well despite international market results that varied from one country to another, the company said in a results announcement. Between January and September, it won a number of new orders, including business from Ford, General Motors and Nissan.
Automotive division revenue grew $10m to $543.2m in the first three quarters of the current year and the automotive division accounted for nearly 65% of Grammer's sales overall. The division's earnings before interest and taxes grew 16.9% to $21.2m.
The seating systems division has two business units - driver seats and passenger seats.
The driver seats unit enjoyed a solid performance on the back of a continued boom in the truck market and stronger demand for seats for construction equipment and lift trucks.
Driver Seats generated revenues of $258.9m during the first three quarters of the year compared to $256.6m a year ago and raised its earnings before interest and taxes by 22.1% to $21.2m.
Passenger Seats, the smallest business unit, continued to perform well in a difficult market environment, Grammer said, adding: "The restructuring of its bus and rail business organizations initiated last year also showed the first signs of success".
The rail business group expanded production volumes, partly by implementing projects that had been postponed in 2005, while the bus business was bolstered by a number of new orders from the United Kingdom.
Overall, the passenger seats unit raised revenues 17.4% to $42.2m but posted a reduced $1m loss in earnings before interest and taxes compared to a loss of $2.9m a year ago.