German interiors supplier Grammer has reported preliminary full year results and an increase in sales to EUR880m in 2006, up from EUR859m in 2005.
Operating earnings before interest and taxes (EBIT) rose to EUR38.8m (2005: EUR32.6m), equivalent to an increase of 19%.
According to Alois Ponnath, CFO and board spokesman, the company had succeeded in reaching its earnings targets.
“Our EBIT figure is at the upper end of our forecast range. This means that Grammer now has good prospects for continuing its course of stable growth.”
The growth in sales was attributable to both company divisions. Sales in the driver seats segment increased to EUR266m (2005: EUR258m). Grammer profited in this respect from a boom in the truck market, as well as from increased demand for seats for agricultural machines, construction vehicles and fork lift trucks.
The automotive segment increased its sales to EUR 574m (2005: EUR569m). Sales in the passenger seat segment rose to EUR45m (2005: EUR38m).
The company’s earnings performance was also positively affected by the cost reduction measures initiated in 2005.
With regard to 2007, Grammer has affirmed its forecast for further earnings and sales growth in a range of up to 5%.
The board expects to achieve a somewhat lower level of earnings in the first quarter of 2007 than the extraordinarily strong performance reported for the equivalent period in the previous year. This is principally due to the launch of new products in the automotive and passenger seat segments.