Chip shortage and raw material prices: Grammer cuts its earnings target

The supplier Grammer sees itself exposed to a “considerable burden on earnings in the third quarter of 2021” and is therefore lowering its target for the year. According to the announcement, Grammer expects “that the challenging macroeconomic conditions, especially in the markets that are relevant to them, will persist in the fourth quarter of 2021”. The further development of the global bottlenecks in the semiconductor industry as well as the price development on the international raw material markets would have “a decisive influence on the forecast earnings development”. That is why Grammer is now assuming an operating EBIT of between 17 and 22 million euros for 2021. The company had previously expected around 65 million euros. Meanwhile, Grammer confirmed the previous sales forecast of around 1.8 billion euros.

Based on preliminary figures, Grammer expects consolidated sales of around 432 million euros for the third quarter (previous year: 461.7 million euros). Grammer attributes the declining sales trend “in particular to the significant reduction in customer calls due to the limited availability of semiconductor components”.

More expensive raw materials are also a burden

In addition, earnings development in the third quarter is negatively impacted by the price development for raw materials. According to preliminary figures and a current extrapolation, Grammer expects operating EBIT to be around 1.2 million euros in the third quarter of the current financial year (Q3 2020: 22.4 million euros). Grammer also expects EBIT to be minus 1.2 million euros (Q3 2020: 5.8 million euros).

Grammer will publish detailed quarterly figures on October 27th.

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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