Amberg, Germany — Automotive seating and interiors company Grammer AG generated sales of 1.5 billion euros ($1.6 billion) in the first nine months of 2019, an increase of 11 percent compared to the same period in 2018, but the German company is preparing for expected difficulties in the near future.
Earnings across the business rose 122 percent and hit 62 million euros ($66.9 million) the first nine months of 2019.
Sales grew thanks to Grammer's acquisition of Toledo Mold and Die, a U.S. automotive thermoplastics auto supplier, in 2018.
The company's automotive business sales rose by 18 percent between the first nine months of 2018 and 2019. They were 1.1 billion euros ($1.2 billion) in the first nine months of 2019. This compares with 942.7 million euros ($1 billion) the third quarter 2018.
At the same time, earnings before interest and taxes (EBIT) in the division increased by 32 percent. It hit 34.3 million euros ($37 million) in the third quarter of 2019. This compares with 26 million euros ($28 million) the 2018 period.
Sales were boosted by the TMD acquisition last year. In Europe, sales were down by 10.6 percent in the first nine months of 2019. This was due to the "muted market conditions."
"Conditions in the automotive and commercial vehicle sectors have deteriorated significantly worldwide. The Grammer Group is also feeling the effects of these rising challenges, but we have been able to assert ourselves relatively well so far," CEO Thorsten Seehars said. "Nevertheless, we must do our homework now in order to prepare for a possibly prolonged period of market weakness. We will be evaluating and implementing further appropriate measures to enhance our operational processes and review Grammer's strategic priorities with the global management team."