GESCO grows considerably in the first half of the year, continues its positive development in the third quarter and increases guidance


- Incoming orders increase significantly
- Key earnings figures rise more steeply than sales
- Dynamic development continues in the third quarter
- Full year guidance has been increased considerably: Earnings per share expected to reach € 4.13


Wuppertal, 15 November 2010 – GESCO Group overcame the recession in the first half (1 April to 30 September 2010) of the financial year 2010/2011 (1 April 2010 to 31 March 2011) and experienced a distinctive trend reversal. Interest from customers revived, the number of incoming orders rose steeply and with a certain amount of time delay, sales also picked up. The majority of subsidiaries felt the upturn.

The first six months of the financial year at GESCO Group encompass the months April to September for GESCO AG and January to June for its subsidiaries. In the third quarter, which includes the months July to September for the subsidiaries, the dynamic development continued, with the number of incoming orders and sales increasing further.

In the first half of the year, incoming orders grew by 54.2 % to € 179.2 million compared to € 116.2 million in the previous year. Group sales rose by 11.9 % to € 156.6 million (€ 139.9 million). Key earnings figures grew more strongly than sales as fixed costs were being spread. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 20.0 % to € 16.0 million (€ 13.3 million). Depreciation and amortization increased slightly and earnings before interest and tax (EBIT) went up by 28.1 % to € 10.4 million (€ 8.1 million). The financial result improved from € -1.4 million to € -1.1 million. Group net income after minority interest increased by 34.0 % to € 5.7 million (€ 4.3 million). Earnings per share pursuant to IFRS were € 1.90 (€ 1.42).

The positive trend continued in the third quarter: Incoming orders for the whole Group totalled € 98.5 million (€ 52.8 million) and Group sales € 90.6 million (€ 66.9 million). Both figures are considerably up on the previous year’s values as well as figures in the second quarter of the year under review. The book to bill ratio was above 1 in each quarter, a sign of further growth.

In view of the positive figures for the first half of the year and the dynamic development in the third quarter, the Company is increasing its guidance. It now expects Group sales of around € 325 million (previously: € 290 million to € 320 million), Group net income after minority interest of approximately € 12.5 million (previously: € 9 million to € 11 million) and earnings per share of € 4.13 (previously: € 2.98 to € 3.64).

Read the full half-year interim report here.