GESCO grows dynamically in nine month period

  • Incoming orders up by 39%, sales up by 30%
  • Operating results increase disproportionately 
  • Full year guidance confirmed

Wuppertal, 14 February 2008 – The investment holding company GESCO AG listed in the Prime Standard is recording continued growth for the nine month period (1 Apr. – 31 Dec. 2007) in the financial year 2007/2008 (1 Apr. 2007 - 31 Mar. 2008) and confirming full year guidance.

Incoming orders were up considerably by 39 % reaching EUR 286 million (EUR 206 million). Sales also increased significantly by 30 % and reached EUR 251 million (EUR 193 million). 

The key figures for the operating result again outperformed sales:  earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 63 % from EUR 21 million to EUR 34 million and earnings before interest and taxes (EBIT) grew by 79 % to EUR 27 million (EUR 15 million). 

The financial result of the previous year’s period included one-off earnings totalling EUR 2.6 million from the sale of a non-core business minority interest in an industrial park. At 51 % the pre-tax profit therefore increased less than EBIT in the period under review and reached EUR 24 million (EUR 16 million). Group net income after minority interest reached EUR 13.8 million (EUR 9.6 million) and earnings per share amounted to EUR 4.57 (EUR 3.49). 

Against the previous reporting date the GESCO Group workforce increased by 11 %, up from 1,542 to 1,710 employees. This now also includes the headcount from VWH Vorrichtungs- und Werkzeugbau Herschbach GmbH, which was not part of disclosure as of the last reporting date.

Given dynamic operating business and continuing momentum in results the company increased its guidance for the full year 2007/2008 in August 2007 and then again in November 2007. The last guidance communicated amounted to Group sales of EUR 327 million, Group net income after minority interest of EUR 17.5 million and earnings per share of EUR 5.79. These targets are now being confirmed given the positive nine month figures reported. GESCO Executive Board member Dr. Hans-Gert Mayrose on the nine month figures: “In Q3 our operating business continued to be buoyant which makes us very confident about our guidance for the full year.