- Incoming orders show strong growth in the first quarter
- Sales are also up, earnings continue to be weighed down
- Incoming orders and sales are also higher year on year in the second quarter
- Targets for the full year confirmed
Wuppertal, 14 August 2015 - GESCO Group registered robust customer demand with a strong growth in incoming orders and increasing sales in the first quarter (1 April to 30 June 2015) of financial year 2015/2016 (1 April 2015 to 31 March 2016), while earnings continued to be weighed down as expected. The full-year forecast is confirmed.
The financial year of GESCO AG and GESCO Group runs from 1 April to 31 March of the following year, while the financial years of the subsidiaries coincide with the calendar year. The interim report for the first three months of financial year 2015/2016 therefore encompasses the operating months January to March 2015 of the Group's subsidiaries. In the reporting period, Setterstix Inc., Cattaraugus, New York, USA, acquired in January 2015, was included in the consolidated income statement for the first time.
Incoming orders rose a sharp 15.3 % from EUR 126.7 million to EUR 146.1 million in the first quarter. These exceptionally high figures include large orders, some of which will only impact sales and earnings in the coming financial year. In organic terms, that is to say excluding the newly consolidated Setterstix, incoming orders would have been up by 13.0 %. Group sales also saw a positive development and gained 8.4 %, reaching EUR 118.7 million (previous year's period: EUR 109.5 million). In organic terms, sales were up 5.8 %.
As announced during the annual accounts press conference on 25 June 2015, margins in the current financial year are not yet on a par with previous years. The results continue to be weighed down by restructuring measures at two subsidiaries. These activities achieved some progress in the first quarter and should be largely completed by the end of the current financial year. In addition, some subsidiaries anticipate declining results partly due to cyclical factors and market developments.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 2.0 % to EUR 11.6 million (EUR 11.4 million) in the first quarter. As investments in the reporting period and the previous year lead to higher depreciation and amortisation, earnings before interest and taxes (EBIT) declined from EUR 6.9 million in the previous year's period to EUR 6.6 million. Group net income after minority interest fell more sharply to EUR 3.2 million (EUR 3.7 million) due the significantly higher tax rate. The order backlog at the close of the first quarter totalled EUR 208.6 million (EUR 205.0 million).
In the second quarter, which comprises the operating months April to June 2015, incoming orders of approximately EUR 112 million did not match the first quarter's above-average figure, but were 12 % higher than the EUR 99.9 million in the previous year's period. At around EUR 117 million, sales in the second quarter were up 6 % compared to EUR 110.6 million on the previous year's period.
At the annual accounts press conference on 25 June 2015, the company forecast Group sales for financial year 2015/2016 of between EUR 480 million and EUR 490 million and Group net income after minority interest of between EUR 12.5 million and EUR 14.0 million. Based on the information available, this forecast is confirmed.
The full quarterly report is available under www.gesco.de.
About GESCO GESCO Group is an association of industrial SMEs, some of them market and technology leaders, with a focus on manufacturing/mechanical engineering and plastics technology. As an SDAX-listed company, GESCO AG offers private and insitutional investors acces to a portfolio of leading German industrial SMEs.
Investor Relations - Oliver VollbrechtPhone +49 202 24820-18 - Fax: +49 202 24820-49E-mail: firstname.lastname@example.org - Website: www.gesco.de