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Grammer to fall well short of order targets after shareholder row
October 13, 2017 / 1:40 PM / 2 months ago

Grammer to fall well short of order targets after shareholder row

Oct 13 (Reuters) - German automotive interiors maker Grammer AG said it expects orders at its automotive business to fall well short of its annual target as a recent power struggle with its top shareholder discouraged car manufacturers from placing orders.

The company, which supplies headrests, consoles and other interior components for cars, also said it lost a “substantial” global follow-up order. Automotive business made up for about three quarters of its total revenue in 2016.

The fresh warning follows one in April, when it said the influence of Bosnia’s Hastor family, which holds a 20 percent stake, had led to a decline in automotive orders.

The lost orders would have represented about 80 million euros ($95 million) in annual turnover from the year 2019/2020 onwards, Grammer said in a statement on Friday.

It said it saw reticence from some “premium manufacturers” on placing new orders, but did not give any names.

Shares in the company fell 15 percent to 47.63 euros as of 1314 GMT.

$1 = 0.8427 euros Reporting by Sylwia Lasek and Anna Serafin in Gdynia; Editing by Maria Sheahan

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