GRAMMER AG Reports Decline in First Quarter Earnings for 2024

GRAMMER AG, a renowned component supplier for the automotive and commercial vehicle industry, has announced a notable year-on-year decrease in its earnings performance for the first quarter of 2024. According to preliminary figures, Earnings Before Interest and Taxes (EBIT) dropped significantly to approximately EUR 3.9 million from EUR 11.7 million in the same period of the previous year. Operating EBIT also saw a downturn, settling at about EUR 2.4 million, adjusted down from EUR 13.9 million in Q1 2023, taking into account positive currency effects around EUR 1.5 million.

The company's revenue experienced a decrease, totaling around EUR 556.6 million in comparison to EUR 589.1 million in the first quarter of 2023. Factors contributing to the earnings slump include a decline in revenue, elevated costs due to volatile capacity utilization at certain plants, ramp-up expenses at a new commercial vehicle facility in the US, and currency losses. The challenging conditions in the EMEA and APAC regions due to weakened demand amidst ongoing macroeconomic and sector-specific uncertainties were also highlighted.

Despite the downward trend, GRAMMER’s Executive Board remains optimistic, maintaining its previously issued full-year guidance. The interim management statement, providing further insights into the company's performance, is scheduled for publication on April 29, 2024.