Auto supplier Grammer makes a loss

AMBERG (dpa-AFX) – The auto supplier Grammer has slipped into the red. The company from Amberg in the Upper Palatinate was able to increase its sales in the first quarter by 2 percent to 515 million euros thanks to better business in America. The bottom line was a loss of two million euros before and eight million euros after taxes. Grammer announced on Thursday that the main causes were increased material, logistics, energy and personnel costs, bottlenecks in the procurement markets and new corona lockdowns in China.

Sales in the auto segment fell by four percent to 324 million euros due to declines in Europe and Asia. On the other hand, sales of seats for trucks, buses and trains increased by 14 percent to 191 million euros thanks to greater demand in Europe and America.

For the year as a whole, Grammer anticipates slight sales growth to around EUR 2.0 billion and an operating profit of EUR 35 to 40 million, after EUR 23 million last year. However, the supplier would have to quickly pass on the significant cost increases to its customers. By 2025, Grammer is aiming for sales of 2.5 billion euros and a profit margin of over 4 percent after taxes./rol/DP/mis