GESCO Group records strong first quarter


- Lively business development continues in the first quarter
- Three acquisitions significantly expand GESCO Group
- Sales forecast raised slightly due to acquisitions, 
earnings guidance confirmed


Wuppertal, 15 August 2012 − In the first quarter (1 April to 30 June 2012) of financial year 2012/2013 (1 April 2012 to 31 March 2013), GESCO Group’s economic performance continued at a similar level as that seen in the second half of 2011/2012. The economic environment turned out to be largely robust despite the crisis in the Eurozone and the recession in southern Europe. The GESCO Group companies were able to translate this into lively business. GESCO AG also considerably expanded its portfolio with three acquisitions.
Incoming orders in the GESCO Group came to € 116.3 million in the first quarter of the current financial year 2012/2013, on par with the very high prior-year level of € 115.9 million. Group sales rose by 7.1 % to € 106.8 million (previous year’s period: € 99.7 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 5.8 % to € 12.9 million (€ 12.3 million). Earnings before interest and taxes (EBIT) grew by 5.2 % to € 9.9 million (€ 9.4 million). The financial result amounted to € -878 thousand compared to € -752 thousand in the previous year’s period. Group net income after minority interest went up by 6.2 % to € 5.8 million (€ 5.4 million). Earnings per share pursuant to IFRS decreased from € 1.80 to € 1.74 as a result of the number of shares being increased by 10 % during the capital increase in February 2012. Werkzeugbau-Laichingen Group, which was acquired in December 2011, is included for the first time in the consolidated income statement; Ackermann Fahrzeugbau GmbH, which was sold in April 2012, is no longer included.

GESCO AG considerably expanded the GESCO Group in the first and second quarter of 2012/2013 by acquiring C.F.K. CNC-Fertigungstechnik Kriftel GmbH, Protomaster Riedel & Co. GmbH and Modell Technik GmbH & Co. Formenbau KG.

The second quarter of financial year 2012/2013 encompasses the operating months April to June 2012 of the subsidiaries. The number of incoming orders flattened out compared to the first quarter, as expected in the full-year guidance, while sales increased once again. Incoming orders came to around € 108 million, down on the high prior-year figure of € 117.6 million but still at a very high level. Group sales amounted to approximately € 114 million (€ 111.4 million). Order backlog came to around € 184 million at the end of the second quarter.

The sales guidance for the current financial year 2012/2013 is being raised from € 430 million to € 438 million on account of acquisitions. The forecast for Group net income after minority interest of € 20.5 million and earnings per share pursuant to IFRS of € 6.17 remains unchanged as newly acquired companies mostly do not make any material contributions to earnings in the first two years after acquisition due to the effects from first-time consolidation.

GESCO Executive Board member Dr. Hans-Gert Mayrose comments: “The indicators and economic forecasts are showing an uncertain and subdued picture with regard to future economic developments. GESCO Group’s operating business currently remains at a high level overall. Individual companies are recording a decreasing customer demand or are finding that customers are placing their orders more hesitantly. There are no specific signs at present of economic performance within the Group suffering a massive slump. Our strong balance sheet continues to put us in a good position both to benefit from positive economic developments and to face setbacks. The high order backlog is creating a certain buffer against potential economic slumps. We have also considerably expanded GESCO Group with company acquisitions and laid the foundations for future growth.”

Full Interim Report 1 April to 30 June 2012