EQS-News

GRAMMER AG publishes results for the first quarter of 2024 - Seite 2

 

Business performance in the regions: General economic uncertainty slows revenue development in EMEA and APAC

In EMEA, GRAMMER’s revenue declined by 11.9% to EUR 289.5 million in the first three months of 2024 (Q1 2023: EUR 328.5 million), a reduction of 9.5% adjusted for currency effects. Revenue was down by 7.2% at EUR 157.1 million in Automotive and by 16.8% at EUR 132.4 million in Commercial Vehicles. In particular, this was as a result of the negative effects of weaker demand owing to general economic and industry uncertainty. EBIT in EMEA amounted to EUR 6.7 million in the first quarter (Q1 2023: EUR 17.4 million) and was mainly impacted by the decline in revenue. Operating EBIT, adjusted for positive currency effects of EUR 0.3 million, amounted to EUR 6.4 million (Q1 2023: EUR 17.1 million).

APAC reported a slight increase in revenue of 3.3% to EUR 121.3 million in the reporting period (Q1 2023: EUR 117.4 million). Adjusted for currency effects, revenue grew by 9.7%. The rise in revenue in APAC was thanks to Automotive, where revenue was up by 10.1% at EUR 86.3 million (Q1 2023: EUR 78.4 million). The Automotive product area in APAC now generates more than 40% of its sales with Chinese OEMs. By contrast, revenue in Commercial Vehicles was down on the same quarter of the previous year at EUR 35.0 million (Q1 2023: EUR 39.0 million). EBIT was impacted by both translation effects and an unfavorable product mix, thus amounting to EUR 9.3 million in the first quarter of 2024 (Q1 2023: EUR 11.4 million). Operating EBIT likewise amounted to EUR 9.3 million (Q1 2023: EUR 11.6 million).

In AMERICAS, GRAMMER’s revenue was stable year-on-year at EUR 159.9 million in the first quarter (Q1 2023: EUR 159.5 million). Adjusted for currency effects, revenue in the AMERICAS region grew by 3.0%. In Automotive, revenue rose slightly to EUR 129.3 million (Q1 2023: EUR 128.1 million), while in Commercial Vehicles it declined from EUR 31.4 million in the same quarter of the previous year to EUR 30.6 million in the first three months of 2024. GRAMMER’s earnings in AMERICAS improved year-on-year but still fell short of expectations. EBIT amounted to EUR –6.4 million and was negatively influenced by revenue, which was lower than originally expected, ramp-up costs for the Commercial Vehicles plant in the region and delayed effects from the “P2P” restructuring project (Q1 2023: EUR –11.2 million). Operating EBIT, adjusted for positive currency effects of EUR 0.7 million, amounted to EUR –7.1 million (Q1 2023: EUR –9.3 million). The focus in this region remains on restructuring. In this context, various options are being considered, including the possible sale of TMD under certain circumstances.