GESCO is starting into the upturn


- Incoming orders increase significantly in the first quarter
- Full year guidance confirmed
- Positive development continues in the second quarter


Wuppertal, 12 August 2010 – In the first quarter (1 April to 30 June 2010) of financial year 2010/2011 (1 April 2010 to 31 March 2011), GESCO Group’s business recovered significantly. Whereas in financial year 2009/2010, incoming orders dropped lower and lower in each quarter, this trend reversed itself in the first quarter of 2010/2011. This positive development also continued in the second quarter.

The Group’s incoming orders climbed by 42.9 % to € 87.8 million in the first quarter, which encompasses the operating months January to March of the subsidiaries (previous year’s period: € 61.4 million). Group sales went up by 4.3 % to € 76.8 million (previous year’s period: € 73.6 million). While material expenditure went up, personnel expenditure went down slightly, despite increased sales. Other operating expenditure in the first quarter includes a one-off effect of around € 0.6 million, which is not going to repeat itself in the following quarters. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to € 7.3 million (€ 7.5 million). As write-downs were slightly up, EBIT (earnings before interest and taxes) went down from € 4.9 million in the previous year to € 4.6 million. The financial result improved from € -0.9 million to € -0.7 million. Group net income after minority interest totalled € 2.4 million compared to € 2.5 million in the first quarter of the previous year. This equates to earnings per share according to IFRS of € 0.81 (€ 0.83). Without the above-mentioned one-off effect, earnings figures would have developed positively and risen higher than sales.

The Group employed 1,731 staff on the reporting date compared to 1,762 on the previous reporting date. Figures for the same period in the previous year did not yet include the 42 employees of Georg Kesel GmbH & Co. KG, which was acquired in April 2009.

Business continued to develop positively in the second quarter of financial year 2010/2011, which encompasses the operating months April to June of the subsidiaries. Incoming orders amounted to € 91.4 million, sales were in the region of € 79.8 million. Both figures were higher than in the first quarter of financial year 2010/2011.

Based on the available information, the company is confirming its forecast from 29 June 2010. It projects Group sales between € 290 million and € 320 million and Group net income after minority interest of between € 9 million and € 11 million. This corresponds to earnings per share according to IFRS of between € 2.98 and € 3.64.

Dr. Hans-Gert Mayrose, member of the Executive Board, on the first quarter: “GESCO Group has left the recession behind. At some subsidiaries it takes several months for incoming orders to translate into sales, but the book to bill ratio is above 1 – a sign of further growth.”

Online at Complete interim report and video webcast with commentary by Dr. Mayrose on the I. quarterly report 2010/2011