GESCO records strong growth in 2010/2011 and plans to drive business further in the new financial year


Wuppertal, 7 June 2011 – The SDAX-listed investment holding company GESCO AG will be reporting on an exceptionally positive financial year 2010/2011 (1 April 2010 to 31 March 2011) at today’s accounts press conference and forecast further growth in the new financial year 2011/2012.

In financial year 2010/2011, GESCO AG profited from the economic upturn on a broad scale. Incoming orders recovered suddenly in the first quarter, then continued rising each subsequent quarter. Incoming orders were also higher than sales in each quarter and the book-to-bill ratio was above 1. In total, incoming orders rose by 74.7 % to € 377.2 million (previous year € 215.9 million). Order backlog went up 45.3 % to € 131.8 million during the course of financial year 2010/2011 (€ 90.7 million).

As most of GESCO Group’s companies produce products with long throughput times, Group sales went up by 20.7 %, which is lower than incoming orders, from € 277.7 million in the previous year to € 335.2 million. Thanks to an improved capacity utilisation and the resulting economy of scales, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 40.6 % to € 38.2 million (€ 27.2 million), considerably higher than sales. At 63.7 %, earnings before interest and taxes (EBIT) climbed even higher than EBITDA, reaching € 27.0 million (€ 16.5 million). Group net income after minority interest shot up by 71.4 % to € 15.3 million (€ 8.9 million). This corresponds to earnings per share of € 5.05 pursuant to IFRS (€ 2.95).

GESCO Group is planning to drive business further in the new financial year 2011/2012 (1 April 2011 to 31 March 2012). The Executive Board expects Group sales of € 390 million and Group net income after minority interest of € 19 million, corresponding to earnings per share pursuant to IFRS of € 6.29. Around € 20 million in investments will be used for driving the further sustainable growth of the Group.

This optimistic forecast is also based on the continuing lively development in the first quarter of the new financial year 2011/2012, which includes the subsidiaries’ operating business from January to March. Incoming orders rose to € 115.9 million, 32.0 % up on € 87.8 million in the previous year’s quarter. Sales increased by 29.9 % to € 99.7 million (€ 76.8 million). Incoming order were therefore higher than sales again in the first quarter of the new financial year – this is a sign of growth.

The company will present the accounts for financial year 2010/2011 and the outlook for financial year 2011/2012 at the accounts press conference / analysts’ conference on 7 June 2011 at 10.30 hrs.

The comprehensive press release, the annual report and a video commentary on the accounts will be available at from 7 June 2011, 8.00 hrs.

A webcast of the accounts press conference / analysts’ conference (in German) will be accessible from 10.30 hrs on via and will be available for twelve months.