Grammer AG Third Quarter Earnings Lag Behind 2023

Grammer AG has reported that its third-quarter earnings for 2024 have not matched the levels of the previous year. The operating EBIT of roughly EUR 8.4 million falls short of the EUR 13.0 million achieved in Q3 2023. This result was adjusted for currency impacts, restructuring, refinancing, and deconsolidation expenses. Revenue also declined to EUR 472.9 million, compared to EUR 494.2 million in the same period last year. The figures were recalibrated, considering the TMD Group's operations were discontinued.

The drop in operating EBIT was influenced by reduced revenue and increased costs due to plant utilization volatility. Particularly in EMEA and APAC, revenues were notably lower than anticipated because of continued weak demand from OEMs, driven by macroeconomic and industry-specific uncertainties.

Despite these challenges, Grammer maintains its annual operating EBIT forecast of EUR 56.8 million, as adjusted in August. However, the revenue forecast has been revised downwards to around EUR 2 billion, from the initially projected EUR 2.3 billion, partly due to the TMD Group's sale.