Hartmurt Mϋller

Grammer AG board member Hartmurt Mϋller has been selected to succeed Rolf-Dieter Kempis as CEO in August next year.

The announcement was made at the company's AGM in Amberg on 28 May.

Mϋller, 45, has been a board member in charge of Grammer's seating systems division since 2007. Before joining Grammer, he was general manager for North and Eastern Europe, climate control, for Valeo. Mϋller has over 20 years' experience in the automotive sector.

The AGM focused on cost rationalisation measures to combat the global financial crisis. After a proposal by the executive and supervisory boards, shareholders resolved to suspend payment of a dividend for fiscal year 2008 to strengthen the company's equity.

Sales for Grammer's seating systems division grew 7.4% from EUR363.3 million (USD510.8 million) in fiscal year 2007 to EUR390 million (USD548.4 million) in fiscal year 2008. Strong sales growth in South America and Europe was attributed to its market leadership position. While the construction machinery market collapsed in the third quarter of 2008, Grammer says there was strong growth in the off-road agricultural machinery market.

Off-road equipment made up 57% of sales for the 2008 fiscal year, with truck and bus 30%, railway 8% and others contributing 5%.

Group revenue increased 0.9% from EUR998.1 million (USD1,404.0 million) to EUR1,007 million (USD1,416 million) in fiscal year 2008, compared to fiscal year 2007, while after-tax profit declined 19.9% from EUR17.6 million (USD24.8 million) to EUR14.1 million (USD19.8 million).

By the end of 2008, the total number of employees had decreased 6.5% from 9,527 to 8,908. According to Grammer's March 31 2009 analyst conference presentation, there were 6,307 Grammer employees outside Germany on 31 December 2008. After further layoffs this year, that number declined to about 5,000. As for Germany, on 31 December 2008, there were 2,601 employees but that number now stands at about 2,200.

Besides reducing headcount, Grammer has employed other measures to cope with its drop in orders. It has shut down its Greenville, US plant and transferred production to Horazdovice, Czech Republic; significantly reduced expenses and stopped or postponed investments; implemented "short time work" at all German locations including its headquarters since January; and reduced overtime for employees.