Wuppertal, 13 November 2015 – The economic climate proved to be largely robust in most areas of the GESCO Group in the first half (1 April to 30 September 2015) of the financial year 2015/2016 (1 April 2015 to 31 March 2016). The Group recorded comparatively brisk business activity overall, while progress was made in restructuring measures at two subsidiaries. Newly included in the consolidated financial statements in this reporting period is Setterstix Inc., Cattaraugus/New York, USA, which was acquired in January 2015.
Incoming orders rose in the first half of the year by 13.9 % to € 258.1 million (previous year’s period: € 226.6 million). Group sales rose by 7.8 % to € 237.3 million (€ 220.1 million).
Operating improvements had a tangible effect on earnings. In addition, provisions formed in the previous year for impending losses amounting to € 1.9 million were utilised in the first half of the year; this positive effect on earnings will not be repeated in the second half of the year. All in all, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased in the first six months by 30.2 % to € 26.1 million, up from € 20.1 million in the previous-year period. Given the lower increase in depreciation and amortisation, earnings before interest and taxes (EBIT) rose more sharply by 48.5 % to € 16.0 million from € 10.8 million in the previous-year period. Group net income after minority interest rose by 44.8 % to € 7.9 million (€ 5.5 million).
The half-year interim report comprises the subsidiaries’ operating business from January to June 2015. In the following third quarter, which accounts for the months July to September 2015 in the case of the subsidiaries, Group incoming orders amounted to approximately € 120 million (€ 113.4 million). Group sales came to approximately € 130 million (€ 117.8 million).
At the annual accounts press conference on 25 June 2015, the company forecast Group sales for full financial year 2015/2016 of between € 480 million and € 490 million and Group net income after minority interest of between € 12.5 million and € 14.0 million. Based on the information available at present, this sales outlook is confirmed. The Executive Board currently expects Group net income after minority interest to stand at the upper limit of this range or even slightly exceed it.
Regarding current economic developments, Dr.-Ing. Hans-Gert Mayrose, member of the GESCO Executive Board, stated: “On the one hand, performance in the second quarter was better than anticipated, but on the other hand there has been a further downturn in the macroeconomic climate since the summer. The slowdown in economic growth in China is affecting demand there. In addition, important customer sectors such as the oil industry and the chemicals industry are reluctant to invest. At GESCO Group, we do not currently see any indications of a significant, widespread decline in demand, but there is also a distinct lack of notable growth impetus. In this environment, we expect demand to dip slightly overall in the fourth quarter. Nonetheless, we are able to fully confirm our plan on the basis of current information.”
The complete quarterly report is available at www.gesco.de/en/investor-relations/financial-reports/.
A video commentary from GESCO Executive Board member Dr. Hans-Gert Mayrose is also available at 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 Vollbrecht
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E-mail: info@gesco.de · Website: www.gesco.de