DGAP-News: Gesco AG / Key word(s): Half Year Results/Half Year Results
2016-11-14 / 07:29
The issuer is solely responsible for the content of this announcement.
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* First half of the year marked by delays in major orders
* Improvement in the third quarter, negative impacts in the fourth quarter
* Outlook for the full year narrowed
Wuppertal, 14 November 2016 - The economic environment in the capital goods
industry, in which the majority of GESCO Group companies operate, remained
cautious in the first half of financial year 2016/2017 (1 April to 30
September 2016). Ongoing issues in the eurozone, persistently low oil
prices and general political uncertainty continued to dampen investment
propensity. Many companies recorded low capacity utilisation overall, which
ramped up the pressure on prices.
Against this backdrop, GESCO Group sales and earnings fell short of the
previous year's figures in the first half of the year, as expected. The
first half of the year was also impacted by clients postponing deliveries
of major orders until the third quarter that were originally scheduled for
the first or second quarter. All told, incoming orders amounted to EUR
250.3 million (previous year's period: EUR 258.1 million), and sales stood
at EUR 228.7 million (EUR 237.3 million). The earnings figures were down
significantly. As a result, EBIT stood at EUR 10.6 million (EUR 16.0
million), and Group net income after minority interest came in at EUR 4.8
million (EUR 7.9 million).
Cash flow, by contrast, posted remarkably positive development in the first
half of the year. Cash flow from ongoing business activity improved
significantly year on year, from EUR -3.2 million to EUR 13.9 million.
Quite a few machines were delivered during the third quarter, which
accounts for the months from July to September 2016 in the case of the
subsidiaries, meaning that they had an impact on sales and earnings.
Incoming orders and sales were satisfactory, amounting to approximately EUR
126 million (previous year's period: EUR 120 million) and to approximately
EUR 128 million (EUR 132 million) respectively.
Some deliveries will also be made during the fourth quarter, but operating
business as a whole is exhibiting a downward trend. In addition, one-time
expenses are negatively impacting earnings. We announced in the statement
for the first quarter that we expected Group sales for the full financial
year 2016/2017 of EUR 480 million at best and Group net income for the year
after minority interest of EUR 13.5 million at best. We confirm this
forecast for Group sales. From today's perspective, Group net income after
minority interest of EUR 13.5 million is no longer realistically
attainable. We now expect that figure to be between EUR 11.5 million and
EUR 12.5 million.
The full half-year interim report is available at
http://www.gesco.de/en/investor-relations/financial-reports/.
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: info@gesco.de * Internet: www.gesco.de
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2016-11-14 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.
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Language: English
Company: Gesco AG
Johannisberg 7
42103 Wuppertal
Germany
Phone: +49 (0)202 248200
Fax: +49 (0)202 2482049
E-mail: gesco@gesco.de
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