28.10.2015
GEA Group Aktiengesellschaft DE0006602006
DGAP-News: GEA Group Aktiengesellschaft: GEA maintains stable earnings margin despite economic slowdown (news with additional features)
DGAP-News: GEA Group Aktiengesellschaft / Key word(s): 9-month figures
GEA Group Aktiengesellschaft: GEA maintains stable earnings margin
despite economic slowdown (news with additional features)
28.10.2015 / 07:30
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GEA maintains stable earnings margin despite economic slowdown
Düsseldorf, October 28, 2015 - In the third quarter of 2015, the global
economic slowdown had a negative impact on GEA's performance too, with
group revenue 3.4 percent below the previous year's level. In the first
nine months of the current fiscal year, however, revenue increased by 1.5
percent. Revenue in the Business Area Equipment grew by 0.9 percent during
this period, while the Business Area Solutions posted growth of 1.9
percent. Service business generated growth in the region of 11 percent and
now constitutes around 30 percent of overall revenue.
EBITDA in the third quarter fell to EUR 110 million, largely due to high
non-recurring expenses and the lower revenue. Adjusted for non-recurring
items totaling EUR 33 million, operating EBITDA amounted to EUR 144
million. The corresponding operating EBITDA margin remained at the previous
year's level of 13.0 percent. By contrast, at EUR 381 million for the first
nine months of the current fiscal year, operating EBITDA was above the
previous year's level. The operating EBITDA margin rose to 11.7 percent,
largely thanks to measures to improve efficiency already implemented.
Adjusted for non-recurring items, the cash flow driver margin for the last
12 months amounted to 10.7 percent at the end of the reporting period.
Towards the end of the third quarter, GEA succeeded in securing various
major orders. Due to project scheduling, however, these orders will no
longer affect fiscal year 2015.
"Unfortunately, the economic downturn left its mark on many areas in the
course of the last quarter. In particular, the weakness of the milk markets
and the postponement of several larger orders had a significant impact on
our figures; this explains why we reduced our revenue forecast for the
current fiscal year. That said, our strategic decision to introduce flatter
hierarchies is to make the Group more cost-effective proved to be the
correct move," says Jürg Oleas, Chairman of the Executive Board of GEA, in
his appraisal of the current situation. "Thanks to a raft of measures to
improve efficiency initiated or already implemented, we can corroborate our
earnings forecast and even raise our expectations in terms of the relevant
cash flow drivers. We are abiding by the previously advised dividend of at
least EUR 0.70 per share."
GEA is still on schedule to implement its new group structure, developed as
part of the "Fit for 2020" program. Several key milestones affecting
Germany, the country with the most GEA employees, have been reached.
Outside Germany, implementation is also progressing according to plan. By
the end of the quarter under review, the workforce had been reduced by
approximately 300 full-time equivalents as a result of the program.
Against a backdrop of ongoing weakness in the global economy - particularly
in the emerging economies, including China - and a further reduction in IWF
expectations for economic growth this year, GEA has reduced its growth
target for revenue for the end of the quarter under review. The Group is
now looking at a moderate decline in organic revenue (assuming unchanged
exchange rates against 2014 and not including acquisition effects). The
current forecast with regard to organic revenue implies moderate growth in
reported revenue figures. We are still targeting operating EBITDA for
fiscal year 2015 in the range of EUR 590 to EUR 640 million. Already
implemented measures to improve the earnings situation, however, coupled
with a reduction in the investment volume have now prompted the Group to
raise its expectations for the cash flow driver margin slightly. Excluding
the effects of acquisitions and non-recurring items, GEA is now expecting a
value of between 9.5 and 10.0 percent in 2015, calculated as a ratio to
revenue.
GEA Group: Key IFRS figures
(EUR million) Q3 2015 Q3 2014
Order Intake 1,068.3 1,167.9
Revenue 1,106.6 1,146.0
Operating EBITDA 1) 143.7 149.0
as % of revenue 13.0 13.0
Operating EBIT 1) 122.6 130.2
as % of revenue 11.1 11.4
EBIT 83.1 115.4
Working capital intensity in % 2) 12.6 12.1
Net liquidity (+)/Net debt (-) 603.2 -356.3
Cash flow driver margin 3) 6.2 8.8
ROCE in % (goodwill adjusted) 4) 14.5 23.2
Full-time equivalents (reporting date) 18,000 18,281
Earnings per share (EUR) 0.86 0.39
1) Before effects of purchase price allocations and before one-offs
2) Average of the past 12m
2) Cash flow driver = EBITDA - Capital expenditure - Change in Working
Capital (average of the past 12 months)
4) Capital employed (average of the past 12 months) excluding goodwill from
the acquisition of the former GEA AG by the former Metallgesellschaft AG in
1999
About GEA
GEA is one of the largest suppliers for the food processing industry and a
wide range of process industries that generated consolidated revenues of
approximately EUR 4.5 billion in 2014. As an international technology
group, the Company focuses on process technology and components for
sophisticated production processes in various end-user markets. The Group
generates more than 70 percent of its revenue in the food sector that
enjoys long-term sustainable growth. As of September 30, 2015, the Company
employed 18,000 people worldwide. GEA is a market and technology leader in
its business areas. The Company is listed in Germany's MDAX (G1A, WKN 660
200). In addition, GEA's share is a constituent of the MSCI Global
Sustainability Indexes. Further information is available on the Internet at
www.gea.com.
If you do not want to receive any further information from GEA, please send
an email to [email protected].
Contact:
GEA Group Aktiengesellschaft
Phone +49 (0)211 9136 1492
Fax +49 (0)211 9136 31087
www.gea.com
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=ITKXWBWGCG
Document title: GEA Q3 report 2015
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service of EQS Group AG.
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Language: English
Company: GEA Group Aktiengesellschaft
Peter-Müller-Straße 12
40468 Düsseldorf
Germany
Phone: +49 (0)211 9136-0
Fax: +49 (0)211 9136-31087
E-mail: [email protected]
Internet: www.gea.com
ISIN: DE0006602006
WKN: 660200
Indices: MDAX
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
Standard), Hamburg, Munich; Regulated Unofficial Market in
Hanover, Stuttgart
End of News DGAP News Service
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