- Growth in sales and earnings - External growth through company acquisition - Annual targets increased
Wuppertal, 15 November 2006 – The GESCO Group continued to grow in the first six months (01.04.-30.09.) of financial year 2006/2007. The group of companies recorded brisk operating business, with increases in sales and earnings. The company also generated external growth by acquiring Frank Walz- und Schmiedetechnik GmbH in Hatzfeld in July this year. The Executive Board expects this positive trend to continue in the second half of the year and has increased the sales and earnings targets.Incoming orders at the GESCO Group were up by 7.4 % from EUR 120 million to 129 million in the first six months of 2006. Group sales rose by 9.0 % from EUR 113 million to EUR 123 million. This growth comes from organic growth and the acquisition of the Dömer Group in August 2005 in fairly equal portions. During the second quarter and the entire six-month period, key earnings figures rose more than sales. In the first six months, EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 16.1 % to EUR 13.9 million (previous year EUR 11.9 million) and EBIT (earnings before interest and tax) improved by 19.4 % to EUR 10.1 million (previous year EUR 8.4 million). Group net income was up by 16.4 % to EUR 4.9 million (previous year EUR 4.2 million). This equates to earnings per share of EUR 1.80 (previous year EUR 1.68). The staff complement increased from 1,219 to 1,312. This rise resulted mainly from the addition of the Dömer Group, which was acquired in August 2005. In view of the pleasing development of operating business and the one-off income from the recent sale of the 40 % stake in Gewerbepark Wilthener Straße GmbH, the company has increased its sales forecast for the full year to EUR 263 million and the earnings forecast to around EUR 12 million, or EUR 4.36 per share.