GESCO after the first nine months: 
more orders, higher target figures, rising dividend

  • Upturn continues unabatedly
  • Full year guidance increased
  • Plans to raise dividend considerably  

Wuppertal, 15 February 2011 – After GESCO Group recorded significant gains in the first two quarters of the current financial year 2010/2011 (1 April 2010 to 31 March 2011), the upturn gathered some more speed in the third quarter, bringing with it a large volume of incoming orders even in the fourth quarter. The subsidiaries’ optimised capacity utilisation and economy of scales resulted in an above-average increase in key earnings figures.

The first nine months of the financial year at GESCO Group encompass the months April to December for GESCO AG and January to September for its subsidiaries. The Group continued its dynamic development in the fourth quarter, which includes the months October to December for the subsidiaries.

Incoming orders rose by 64.3 % to € 277.7 million (previous year: € 169.0 million) in the first nine months. Group sales went up 19.6 % to € 247.2 million (€ 206.7 million). The margins benefited from a much improved capacity utilisation compared to the previous year. EBITDA increased by 33.0 % to € 26.1 million (€ 19.6 million). With 52.2 %, EBIT grew even more steeply and reached € 17.5 million (€ 11.5 million). And finally, Group net income after minority interest rose by 64.1 % to € 10.0 million (€ 6.1 million), corresponding to earnings per share of € 3.31 pursuant to IFRS (€ 2.01).

In the fourth quarter, incoming orders amounted to around € 100 million and sales to € 87 million. Incoming orders were up on sales in every quarter of financial year 2010/2011. This is a sign of further growth. The Company is therefore optimistic about developments in the new financial year 2011/2012.

In view of the positive figures for the first nine months and the continuing positive development in the fourth quarter, the guidance is being increased. Group sales are expected to total around € 334 million in the entire financial year 2010/2011 and Group net income after minority interest about € 15.0 million, amounting to earnings per share of € 4.96 pursuant to IFRS. On the basis of these target figures, the Group plans to raise the dividend considerably above its value of € 1.30 for the previous financial year.