15.08.2016
Gesco AG DE000A1K0201
DGAP-News: GESCO sees subdued start to new financial year
DGAP-News: Gesco AG / Key word(s): Quarterly / Interim Statement/Quarterly /
Interim Statement
GESCO sees subdued start to new financial year
15.08.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
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- Sales and earnings short of previous year's figures, as expected
- Second-quarter incoming orders and sales slightly up on the first
quarter
- Sales and earnings for the full financial year expected at lower end of
target ranges at best
Wuppertal, 15 August 2016 - As expected, GESCO Group recorded a subdued
start to financial year 2016/2017 (1 April 2016 to 31 March 2017). The
capital goods industry, in which the majority of the Group subsidiaries
operate, experienced sluggish development in the first quarter, which
comprises the operating months January to March 2016 at the subsidiaries.
Ongoing issues in the eurozone, persistently low oil prices and general
political uncertainty continued to dampen investment propensity. Many
companies in the industry recorded low capacity utilisation, which ramped
up the pressure on prices. Against this backdrop, sales and earnings fell
short of the previous year's figures, as expected.
At EUR 122.5 million, incoming orders in the first quarter may not have
matched the unusually high figure reported in the first quarter of the
previous year (EUR 146.1 million), but they were up on the last quarter of
the previous year (EUR 105.1 million). Group sales amounted to EUR 113.6
million (previous year's period: EUR 118.7 million) in the first quarter.
The partial fall in capacity utilisation and general price pressure had an
impact on earnings figures. Earnings before interest, taxes, depreciation
and amortisation (EBITDA) amounted to EUR 10.6 million, down from EUR 11.6
million in the same period last year. The slight increase in depreciation
and amortisation meant that earnings before interest and taxes (EBIT) fell
more sharply than EBITDA to EUR 5.4 million (EUR 6.6 million). Group net
income after minority interest closed the period at EUR 2.7 million (EUR
3.2 million).
In the second quarter, which accounts for the operating months April to
June 2016 in the case of the subsidiaries, incoming orders amounted to
approximately EUR 127.8 million (previous year's period: EUR 112.0
million). Sales came to approximately EUR 115.1 million (EUR 118.6
million). This means that both incoming orders and sales increased slightly
quarter on quarter; the book-to-bill ratio was also over 1 in the second
quarter.
At the annual accounts press conference on 30 June 2016, the Executive
Board forecast Group sales for financial year 2016/2017 of between EUR 480
million and EUR 490 million and Group net income after minority interest of
between EUR 13.5 million and EUR 14.5 million. According to the information
available at the current time, the Group expects sales and earnings to come
in at the lower end of these ranges.
In the statement for the first quarter, segment reporting is based for the
first time on the new portfolio strategy, which was presented at the annual
accounts press conference. The strategy defines strategically attractive
segments experiencing positive megatrends in which GESCO AG would like to
target acquisitions. In additiont, the reclassification of the segments
offers greater transparency to the capital market. The reclassification of
the operating segments is geared towards the respective customer markets
and encompasses the Production Process Technology, Resource Technology,
Healthcare and Infrastructure Technology as well as Mobility Technology
segments. One common element of all these segments is that they pursue B2B
business models with a focus on the capital goods industry.
Dr Eric Bernhard, Chairman of the Executive Board: "A view to the
conditions offers little cause for optimism at the present time. The
capital markets have reacted neither to Brexit nor the political events in
Turkey with major price losses in recent weeks. However, both issues
increase general uncertainty for the real economy, which is unfavourable
for the propensity to invest - and therefore also for the capital goods
sector, in which the focus of our activities lies. We are implementing
cost-cutting measures and scrutinising investments that may not be
immediately necessary. In addition, we have kicked off a number of
optimisation projects at individual Group subsidiaries which are geared
towards leveraging both costs and opportunities and improving margins over
the medium term."
The full quarterly statement is available at www.gesco.de.
GESCO Group key figures for the first quarter (1 April to 30 June 2016)
of financial year 2016/2017 pursuant to IFRS:
I. Quarter I. Quarter Change 2016/2017 2015/2016 Incoming orders (EUR'000) 122,543 146,090 -16.1 % Sales (EUR'000) 113,554 118,706 -4.3 % EBITDA (EUR'000) 10,562 11,631 -9.2 % EBIT (EUR'000) 5,419 6,641 -18.4 % Earnings before (EUR'000) 4,745 5,954 -20.3 % tax Group net (EUR'000) 2,684 3,174 -15.4 % income after minority interest Earnings per (EUR) 0.81 0.95 -15.4 % share acc. to IFRS Employees (No.) 2,547 2,523 0.8 %About GESCO GESCO AG is an industrial group with market and technology leaders in the investment goods industry focusing on production process technology, resource technology, health and infrastructure technology and mobility technology. As a stock listed company on the Prime Standard, GESCO AG offers private and institutional investors access to a portfolio of leading small and medium-sized industrial German companies, so-called hidden champions of Germany's Mittelstand. Investor Relations, Oliver Vollbrecht Tel. +49 202 24820-18, Fax +49 202 24820-49 E-mail: [email protected], Internet: www.gesco.de --------------------------------------------------------------------------- 15.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Gesco AG Johannisberg 7 42103 Wuppertal Germany Phone: +49 (0)202 248200 Fax: +49 (0)202 2482049 E-mail: [email protected] Internet: www.gesco.de ISIN: DE000A1K0201 WKN: A1K020 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 492597 15.08.2016
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