Grammer Group has posted first quarter net profit after tax up 89.2% to EUR14m (US$15.4m), with revenue rising 7.5% to EUR458.0m (US$500m) and an increase of 52% in EBIT to EUR22.5m (2016: EUR14.8m).
Both divisions contributed to the increase in revenue and profitability. As in earlier years, Grammer generated most of its revenue in the Automotive division, which grew 6.1% to EUR335.5m (2016: EUR316.1m).
The implementation of measures to optimise operating performance were reflected in the improvement in EBIT of EUR14m (2016: EUR8.6m), accompanied by a correspondingly wider EBIT margin of 4.2% (2016: EUR2.7m).
The Commercial Vehicles division – formerly known as Seating Systems – also reported encouraging performance.
Despite still muted market conditions in Brazil and in agricultural machinery, growth in the truck segment in China and Europe in particular as well as construction machinery and material handling, pushed revenue up to EUR134m (2016: EUR122m).
“Our sustained positive operating business performance, which continued in the first quarter of 2017 in line with expectations, shows the strategy we have been implementing for many years is now bearing fruit,” said Grammer CEO, Hartmut Müller.
“As planned, we were particularly able to boost the Grammer Group’s profitability significantly and are now benefiting from the capital spending projects of the last few years.”